By Revin Mikhael D. Ochave, Reporter
LISTED DigiPlus Interactive Corp. said the government could generate an additional P200 billion to P300 billion in revenue if the unregulated segment of the country’s online gambling sector is legalized.
“If we legalize the illegal sector of the (online) gaming industry, we could easily raise another P200 billion to P300 billion. That should be easy. That will help us since our (government’s) income comes from tax collection,” DigiPlus Chairman Eusebio H. Tanco said during a media briefing last week.
Mr. Tanco noted that with just 30% of the country’s online gaming sector regulated and the remaining 70% operating illegally, there is a significant revenue opportunity for the government.
DigiPlus operates the online gaming platforms BingoPlus, ArenaPlus, and GameZone.
“You have 70% out there that is unregulated, that is unmonitored. No consumer protection. They don’t play by the rules. Those are the illegal ones,” Mr. Tanco said.
“The revenue of online gambling from Philippine Amusement and Gaming Corp. (PAGCOR) is about P150 billion,” he added.
PAGCOR said last week that gross gaming revenue in the first half grew by 26% to P215 billion from P171 billion in the same period last year.
Mr. Tanco said that instead of tightening regulations on online gambling, greater efforts should be directed toward bringing illegal platforms into the legal market.
“It will not go away. It will just shift from legal to illegal, or from illegal to legal. I think what we all want is for the illegal to shift to legal. I think that’s the best,” he said.
“We can add a little bit more regulation on the regulated one, because if you overregulate, it migrates to the illegal. There’s a balance where you can regulate so that you can attract the illegal (operators) to apply for licenses to be legalized,” he added.
Mr. Tanco said the company’s operations remain business as usual despite the regulatory tensions.
“Operationally, we were not affected. It’s the stock price that has been affected… We’re still on target,” he said.
“We’re positive. We’re very confident. We hope that everybody sees the light,” he added.
DigiPlus President Andy Tsui said the proposed increase in the minimum cash-in for online gambling platforms to P10,000 would drive players to unregulated platforms.
He added that the company is still analyzing its potential impact on revenue.
“If the minimum top-up amount is set too high, we’ll end up pushing some players to the black market,” he said.
On Friday, DigiPlus said it is expanding into South Africa, following the planned launch of its Brazil operations in September.
The company is preparing to file applications for a national manufacturer license, a bookmaker license, and a bookmaker premises license with the Western Cape Gambling and Racing Board. Processing of the licenses takes a minimum of six months after filing.
Valued at over $1.6 billion in 2023 and 2024, the South African online betting industry is projected to grow by up to 5% annually, driven by rising mobile use, a digitally engaged population, and strong demand for live sports betting.
“South Africa is not just the largest online gaming market in Africa, it’s a gateway to the continent’s digital future. As we expand from Southeast Asia to Latin America and now Africa, we remain committed to responsible innovation, local compliance, and developing products that connect deeply with culture and community,” Mr. Tanco said.
DigiPlus shares were last traded on Friday, down by 0.92% or 25 centavos to P27 per share.