The Philippine online gambling industry has been jolted by renewed legislative efforts that have triggered steep market sell-offs and intensified regulatory uncertainty. Stocks tied to the sector—particularly those of leading operator DigiPlus Interactive Corp.—plunged sharply following the filing of a bill that seeks to implement stringent controls on digital gaming activities.

DigiPlus, which runs the country’s top platforms BingoPlus and ArenaPlus, saw its shares plunge to the maximum daily trading limit of 30% on July 3, later ending the day down 14% at PHP38.75. This followed a three-week downward spiral that has wiped out nearly PHP120 billion from its market capitalization. From a peak of PHP65.30 in early June, DigiPlus’ valuation has tumbled, despite still being up 40% since the start of the year and boasting a staggering 185% increase over the past 12 months.

The sell-off was triggered by a proposed Senate bill from Senator Sherwin Gatchalian, who has called for a crackdown on online gambling. The bill proposes raising the minimum age for players to 21, prohibiting the use of popular e-wallets such as GCash and Maya for gambling payments, and enforcing a minimum deposit threshold of PHP10,000 ($175) to reduce participation from financially vulnerable groups.

Gatchalian has cited growing addiction, financial instability, and associated criminal activity as reasons for the proposed measures. He warned that mobile devices had effectively turned into “portable casinos” that endanger Filipino youth. “The erosion of our moral fibres” and rising crime were linked to the unchecked expansion of online gaming, he asserted.

Investor Reactions and Market Fallout

Investor response was swift and severe. DigiPlus shares hit the daily trading ceiling during a session that saw volume surge to eight times its three-month average. Bloomberry Resorts Corp., another gaming entity that recently ventured into digital with its MegaFUNalo platform, also felt the impact, shedding 6% and closing at PHP4.70.

“The heightened regulatory risk has sparked a broad sell-off across the gaming sector, with PLUS seen as particularly vulnerable,” noted Wendy Estacio-Cruz, head of research at Unicapital Securities, according to InsiderPH.

Analysts say the market turbulence reflects more than just sector-specific worries—it signals a broader investor retreat amid unclear policy direction. Toby Allan Arce of Globalinks Securities commented that the political push behind the bill has led both institutional and retail investors to exit the sector in the absence of legislative clarity.

While the Philippine Stock Exchange Index (PSEi) ended relatively flat, DigiPlus’ drop of 10% on Wednesday made it the most actively traded stock of the day. The tremors were felt even among PSEi-listed companies like Bloomberry, despite its relatively recent entry into the e-gaming market.

Industry Pushback and Official Reassurances

In response to the sell-off, DigiPlus released a statement attributing the market reaction to “speculation” surrounding both the Online Gambling Regulatory bill and a parallel Online Gambling Prohibition bill filed in the House of Representatives. The company stressed that these proposals remain in early legislative stages and have yet to become law.

“DigiPlus remains fully operational and committed to delivering value to our customers and shareholders. We continue to conduct business as usual and remain confident in the long-term growth potential of the company,” it stated.

The firm also revealed it is expanding internationally, with plans to launch in Brazil this September. In May, it established DigiPlus Global Pte Ltd in Singapore to spearhead its international strategy and appointed new top executives to drive its digital transformation.

Meanwhile, the Bangko Sentral ng Pilipinas (BSP) has announced plans to implement regulations that would compel banks and e-wallet services to strengthen user protections against gambling-related risks. The Department of Finance is also considering new taxation and policy frameworks to better regulate the sector.

Balancing Growth with Social Responsibility

Despite criticism from religious leaders and lawmakers, the Philippine Amusement and Gaming Corporation (PAGCOR) remains supportive of regulated digital gambling. The agency reported that in Q1 2025, e-games generated PHP51.39 billion ($901.6 million)—accounting for nearly half of the industry’s PHP104.12 billion ($1.83 billion) gross gaming revenue and surpassing traditional casino earnings for the first time.

PAGCOR Chairman Alejandro Tengco highlighted the necessity of “balancing innovation with consumer protection and sustainability,” as rapid growth continues to outpace regulatory oversight. As of mid-June, the nation had 64 accredited system operators and 12 active online gaming platforms.

Industry voices have also emphasized the distinction between licensed domestic operators and illegal offshore operators like the now-banned POGOs, which have been linked to illicit activities. “This is not POGO. This is a flourishing, successful, employing, tax-generating industry,” one source told NEXT.io anonymously, framing the proposed legislation as an overreach.

Still, some financial analysts remain cautious. Nicky Franco of Abacus Securities interpreted the recent plunge as a sign of capitulation, suggesting the stock may stabilize before a potential rebound. “Maybe goes sideways for a while then rally when it’s added to the index end-July,” he remarked.

Estacio-Cruz echoed that sentiment, advising investors to wait for more clarity: “Although the initial sell-off appears to be driven by sentiment, continued downward pressure is likely if regulatory risks intensify or remain unclear.”