DigiPlus Interactive Corp. is expected to face stronger competition in the Philippines’ online gaming sector as several integrated resort operators continue expanding their digital offerings, according to analysts reviewing the company’s upcoming second-quarter performance.
Research firm Abacus Securities Corp. said the growing number of online gaming platforms launched by traditional casino operators could gradually affect DigiPlus’ position in the market, particularly by putting pressure on profitability. Despite those concerns, analysts still believe the company maintains advantages through its established platform, larger customer base and stronger player engagement.
The assessment comes as the Philippine online gaming market becomes increasingly crowded. Several major integrated resorts have already entered the digital space either through proprietary platforms or by working with technology providers.
According to Inside Asian Gaming, Abacus noted that “Competition … has been becoming more fierce with new players beginning their operations in the online gaming space through their own online gaming platform, like Bloomberry, or through a third-party provider, like PhilWeb.”
The brokerage added, “This is likely going to slowly eat into the market share for PLUS and will push the company to continue its A&P (advertising and promotion) spend to build and maintain its customer base.”
Bloomberry Resorts Corp. has expanded its presence through online products including Solaire Online and its relaunched FUnaloMAX platform. At the same time, PhilWeb Corp. has built a network of casino partners operating online gaming services through its technology infrastructure.
Among the operators connected to PhilWeb’s platform ecosystem are Newport World Resorts through NWR Play, Okada Manila, Hann Casino Resort and NUSTAR Resort and Casino. Additional partners include FBM Philippines and PT Gaming.
Marketing Costs Expected to Remain Elevated
While DigiPlus continues to generate strong profits, analysts have become increasingly focused on the company’s future growth prospects and the cost of defending its market position.
According to Abacus, maintaining customer acquisition and retention efforts will likely require substantial advertising and promotional spending throughout the year. The company has previously indicated that its advertising and promotion ratio is expected to remain in the high-20% range.
Although lower franchise fees from the Philippine Amusement and Gaming Corporation (PAGCOR) may provide some relief following fee harmonization measures, analysts believe rising competition could offset those benefits.
Abacus also pointed to broader challenges facing the company beyond market competition. The brokerage observed that DigiPlus’ international expansion plans have encountered setbacks.
“Other ventures have been questionable, to say the least, with its foray into Brazil and South Africa having been put on hold, and its potential entry into the physical casino space may only impact its profitability further.”
The firm further warned of potential investor concerns linked to ongoing market speculation surrounding the company.
It stated: “We expect the storm to continue for PLUS amid surrounding rumors that some of its shares were used for flood control kickbacks, scaring off investors. Headline figures, once the company announces results, are likely going to pose as a negative for the share price as well.”
Analysts Still See DigiPlus Holding Key Advantages
Despite the influx of competitors, several market observers believe DigiPlus remains well positioned compared with newer entrants.
Reyes Tacandong & Co. senior adviser Jonathan Ravelas said the company’s leadership position remains intact even as casino-backed platforms seek a larger share of the online gaming market.
“The arrival of more casino operators raises competitive pressure, but DigiPlus remains the incumbent leader,” he said. “The near-term impact is likely more on margins than on revenue dominance, while the long-term winner will be the company that best balances customer acquisition, retention, and regulatory compliance.”
COL Financial Senior Research Analyst Richard Laneda expressed a similar view during a briefing.
“I’m sure the new entrants would have an impact competition-wise. But I think DigiPlus will still have an edge because of the wider user base, a better platform, better user engagement, and a better experience on the online gaming platform versus new entrants.”
Laneda also highlighted Bloomberry’s MegaFUNalo platform, noting that the product had previously undergone a relaunch aimed at increasing its appeal to players.
Second-Quarter Results Expected Under Pressure
Abacus expects DigiPlus’ second-quarter financial results to reflect both competitive pressures and broader economic challenges.
The brokerage forecast that gross gaming revenue would remain close to the levels seen during the fourth quarter of 2025 and the first quarter of 2026. Analysts attributed the outlook partly to weaker consumer spending, which PAGCOR previously linked to the effects of the Iran war.
“Second-quarter GGR is likely to trend close to its trajectory in the fourth quarter of 2025 and first quarter of 2026, given that consumer spending has also taken a hit from the impact of the Iran war, as earlier indicated by PAGCOR,” the brokerage said.
“This will result in about a 20% to 25% decline in revenues year-on-year given the higher base.”
DigiPlus has not yet announced when it will release its second-quarter earnings report, although analysts expect the figures to be filed by August 14, the regulatory deadline for quarterly disclosures.
The company already reported a challenging first quarter. Revenue fell 25% year-on-year to PHP17.24 billion ($296 million), while net income declined 33% to PHP2.82 billion ($48.5 million). The results followed the removal of direct links between electronic wallets and licensed online gaming platforms. During the same period, DigiPlus spent PHP4.53 billion ($77.9 million) on advertising and promotion activities.