Philippine online gambling giant DigiPlus Interactive has suffered another major setback. Due to market concerns that President Marcos might announce a tougher crackdown on online gambling in his State of the Nation Address (SONA), DigiPlus' stock price plummeted nearly 30% on Thursday, marking its biggest recent drop. Since the high in early June, its stock price has fallen by 70%, with a market value evaporation of over 207 billion pesos.
Currently, DigiPlus's stock price is 19.54 pesos per share, far below the May high of 65.30 pesos. Although the market value still reaches 88.4 billion pesos, more than double that of casino operator Bloomberry Resorts, investor sentiment remains low. Unicapital Securities analyst Jeri Alfonso stated, "Regulatory uncertainty has reignited market panic. If President Marcos announces a complete ban on online gambling or strengthens restrictions in the SONA, DigiPlus's revenue could be severely impacted."
This is not the first time the market has reacted violently to presidential remarks. Earlier this year, Marcos had already expressed support for banning online cockfighting. The SONA is scheduled for July 22, and investors generally expect it to reveal the future direction of gambling policy.
DigiPlus is currently under multiple pressures. On one hand, it is expected to be included in the Philippine PSEi index in August, but the regulatory storm has put index-tracking fund managers in a dilemma; on the other hand, although the company launched a 6 billion peso stock buyback plan last week, it has been unable to effectively stop the decline.
In response to external attention, DigiPlus announced on Thursday: "Current legislation is still in its early stages, and future impacts are difficult to assess. We fully support the establishment of a stricter and more transparent regulatory system." The company also emphasized that its profits reached 4.2 billion pesos in the first quarter of 2025, and its long-term development fundamentals remain solid.
Although some believe that a complete ban on online gambling might force the industry underground, complicating governance, the market still lacks confidence in the short term. As the analyst said, "It's hard to say DigiPlus has bottomed out before the regulatory direction is clear."
