Philippine gaming operator DigiPlus Interactive Corp. has withdrawn from New Zealand’s online casino licensing auction following a review of market conditions and investment opportunities.
The company confirmed the decision in an October 14 disclosure to the Philippine Stock Exchange, having previously submitted an expression of interest in August.
“After further market analysis and determination of market values, the company has decided to abstain from the final rounds of the New Zealand auction on the right to apply for an online gaming license,” DigiPlus stated.
The operator said its decision would have “no impact on the company’s businesses or deviation from the company’s international expansion strategy.”
DigiPlus operates several gaming platforms in the Philippines, including BingoPlus, ArenaPlus and GameZone. Its international development plans now centre on South Africa, while its recently launched Brazilian business faces regulatory restrictions.
New Zealand Licensing Costs Influence Withdrawal
New Zealand’s Department of Internal Affairs completed its online casino licensing auction after 10 rounds, attracting 32 bidders.
Eleven entities secured rights to apply for 15 licences, each carrying a fee of NZ$15 million. Successful participants must undergo further regulatory assessments before receiving permission to operate.
The applicants include companies associated with SkyCity Entertainment Group, Entain and Stake.
DigiPlus had initially considered entering the market as part of its wider international development plans. However, management has increasingly focused on jurisdictions that match its operational capabilities and commercial objectives.
In September, Erick Su, the company’s chief global growth officer, acknowledged that earlier expansion decisions had involved highly competitive markets.
“Previously, our plan was a little bit aggressive, I would say, because we were choosing a very competitive market like Brazil. We chose South Africa because of its good potential,” Mr. Su told reporters at the time, as reported by Manila Bulletin.
Su also highlighted the limited opportunities available in Asia, where several jurisdictions restrict private online gambling operations or maintain monopoly arrangements.
DigiPlus is working with external consultants specialising in regional gambling legislation to evaluate further international opportunities.
South African Launch Planned for 2027
Following its withdrawal from New Zealand, DigiPlus is prioritising preparations for its South African operation.
The company has secured a gaming licence from the Western Cape Gambling and Racing Board and aims to enter the market by the third quarter of 2027.
Management is considering partnerships with local third-party providers to support the launch. DigiPlus is also assessing opportunities in other African jurisdictions.
Meanwhile, its Brazilian operation, launched under the BingoPlus brand, faces uncertainty following a provisional measure introduced by President Luiz Inácio Lula da Silva in September.
The measure prohibits the operation and advertising of fixed-odds betting and online gaming activities. It took effect immediately but remains subject to congressional approval within a period that could extend to 120 days.
DigiPlus described the regulatory situation as “fluid and is not final,” indicating that further legislative developments could affect its operations.
In its September 28 disclosure, the company stated that the restrictions were not expected to materially affect its financial position or operating results based on its assessment at that time.
Financial Outlook Reflects Expansion Spending
DigiPlus reported first-half net income of P9.8 billion in 2026, an increase of 16% from P8.4 billion a year earlier.
Revenue declined to P32.85 billion from P47.77 billion, while quarterly net gaming revenue after tax remained relatively stable at P5.52 billion.
The company introduced NGR after tax as a key performance indicator during the second quarter to better measure operating efficiency and returns on capital.
S&P Global Ratings expects higher customer acquisition and retention expenses to affect profitability over the next two years.
The agency forecasts EBITDA margins of 14.5% to 16% for 2026 and 2027, compared with approximately 18% during 2024 and 2025.
It also projects revenue of P70.25 billion in 2026, recovering to P82.05 billion in 2027. New businesses, including overseas ventures and planned land-based gaming activities in the Philippines, could account for 10% to 20% of revenue and EBITDA by 2027.
DigiPlus shares rose 1.37% to P7.40 on October 14.