No Firm Plans to Acquire IR Licensee CasinoPlus: DigiPlus
On November 18, 2024, DigiPlus Interactive Corp made headlines with a statement to the Philippine Stock Exchange, clarifying its position regarding the potential acquisition of CasinoPlus, an online gaming provider regulated by the Philippine Amusement and Gaming Corp (Pagcor). The company emphasized that there are “no definitive plans at this time” to pursue the acquisition, despite earlier reports suggesting otherwise.
The Context of the Acquisition Talks
CasinoPlus operates under a gaming license for its integrated resort (IR), the Hotel Stotsenberg and Casino, located in Clark, approximately two hours north of Manila. This resort is currently undergoing renovations, and its gaming operations are subject to the evolving regulatory landscape in the Philippines. Under new regulations, licensed land-based casinos and IR operators are permitted to offer online gambling exclusively to registered members within the country. This model is distinct from traditional online gaming, as it requires a direct connection to physical gaming machines or tables at brick-and-mortar casinos.
The clarification from DigiPlus was prompted by a report from Bilyonaryo.com, which had suggested that the company was on the verge of acquiring CasinoPlus. The report indicated that if the acquisition were to proceed, the combined monthly revenue of DigiPlus and CasinoPlus could reach an impressive PHP10 billion (approximately US$170.4 million). Furthermore, it noted that discussions between the two companies had been “smooth so far,” largely due to shared investors.
DigiPlus’s Strategic Expansion Plans
DigiPlus, formerly known as Leisure & Resorts World Corp, has a history of exploring acquisitions as part of its strategic expansion. In its statement, the company reiterated that while acquisitions are a component of its growth strategy, there are currently no concrete plans regarding CasinoPlus. This cautious approach reflects the complexities and uncertainties inherent in the gaming industry, particularly in the Philippines, where regulatory changes can significantly impact business operations.
The company has been involved in various gaming and leisure ventures, including digital bingo and a digital sportsbook platform. As of its third-quarter earnings report on November 11, DigiPlus maintained an 87.27-percent ownership stake in First Cagayan Leisure and Resort Corp. This entity is responsible for licensing, regulating, and monitoring interactive gaming businesses on behalf of the Cagayan Economic Zone Authority (CEZA), which has been issuing licenses for interactive gaming since 2001.
The Regulatory Landscape
The Philippine gaming industry is undergoing significant changes, particularly with the introduction of new regulations governing online gambling. These regulations aim to create a more structured environment for both land-based and online gaming operations. By allowing licensed casinos to offer online gambling to registered members, the government seeks to ensure that online gaming remains connected to physical establishments, thereby enhancing oversight and accountability.
This regulatory framework is crucial for companies like DigiPlus and CasinoPlus, as it shapes their operational strategies and potential for growth. The ability to offer online gaming in conjunction with physical casinos presents a unique opportunity for revenue generation, but it also requires adherence to strict compliance measures.
Future Prospects
While DigiPlus has clarified its current stance on the acquisition of CasinoPlus, the landscape of the Philippine gaming industry remains dynamic. The potential for future collaborations or acquisitions cannot be entirely ruled out, especially as both companies navigate the evolving regulatory environment and seek to capitalize on emerging opportunities.
As DigiPlus continues to explore avenues for growth, its focus on strategic acquisitions will likely remain a key component of its business strategy. The company’s involvement in various gaming sectors positions it well to adapt to changes in the market and leverage synergies with potential partners.
In summary, while the prospect of DigiPlus acquiring CasinoPlus has been put on hold for now, the ongoing developments in the Philippine gaming industry will undoubtedly keep stakeholders on their toes as they monitor potential shifts in strategy and regulation.