Online gaming operator DigiPlus Interactive Corp said its operations remain strong and user interest is “as usual,” despite regulatory headwinds and a recent drop in its share price.
DigiPlus chairman Eusebio Tanco told a recent news briefing that he was confident the company would be included in the 30-company Philippine Stock Exchange index (PSEi) in its next recomposition.
“We are one of the fastest growing, most stable and probably the only internet company there is in the Philippines,” Tanco said.
“We’re being chosen by most asset managers as part of their portfolio stocks to invest in. We have a good business model, we have a strong management team, and we’re technically very, very capable,” he said.
“Therefore, we were chosen as one of the candidates to become a member of the forthcoming index. Now, with what’s going on, it doesn’t make any difference,” he said.
Market watchers have viewed DigiPlus, which has steadily expanded its digital platforms and services, as a potential candidate for inclusion in the PSEi, which tracks the 30 most traded and valuable companies on the Philippine Stock Exchange.
The next rebalancing of the index is expected in the coming months.
“Operationally, we were not affected. It’s the stock price that has been affected… We’re still on target. Nothing has changed except hurt feeling,” Tanco said.
The company said it continues to study the impact of various proposals on regulating the gaming sector, such as a measure to increase the minimum cash-in requirement for online gambling platforms to P10,000 to discourage impulsive gamers.
DigiPlus president Andy Tsui expressed concern that over-regulation could push players toward illegal gaming platforms, which he said would not benefit the government.
“Because black market operators, they don’t follow any procedures, and they don’t have eKYC (electronic know your customer), they don’t have to comply with the minimum top up,” Tsui said.
“So if the amount is set up too high, certainly it’s not good for the industry, and also they will lose the revenue,” he said.
Tanco also cited the need for the government to pursue illegal operators.
“You have 70 percent out there that is unregulated, that is unmonitored, mostly no consumer protection. They don’t play by the rules. Those are the illegal,” Tanco said.
