Moody’s Ratings has assigned DigiPlus Interactive Corp. a first-time B1 corporate family rating with a stable outlook, citing its leading position in Philippine online gaming and strong balance sheet despite regulatory and competitive risks.
The rating agency said DigiPlus benefits from low leverage, robust cash generation, and a net cash position, but faces uncertainty from tighter gaming rules and the risks of expanding into land-based casinos and overseas markets.
DigiPlus holds an estimated 38.5 percent share of the Philippine online gaming market, with about six million monthly active users and more than 1,000 games across bingo, electronic games, and sports betting, Moody’s said.
The agency expects the company’s EBITDA to fall to about P11.4 billion in 2026 from P14.3 billion in 2025. The decline follows the Bangko Sentral ng Pilipinas’ August 2025 directive requiring mobile wallet and payment providers to delink in-app access to online gaming platforms, which Moody’s said reduced industry-wide online gaming revenue.
Higher fuel prices and broader inflationary pressures have also weighed on discretionary gaming spending.
Moody’s expects EBITDA to recover to about P14 billion to P15 billion in 2027 and 2028, helped by organic growth and contributions from International Entertainment Corp. (IEC) and overseas investments.
DigiPlus is expanding into land-based casinos through its investment in IEC convertible notes, which could give it majority control of the company. That would also increase its exposure to IEC’s capital commitments through 2033 for LaVie Resort & Casino Manila.
The company is also entering Brazil and South Africa’s online gaming markets and plans to apply for a license in New Zealand. Moody’s estimates combined capital spending for Brazil and South Africa at about P650 million over the next two years.
Still, the agency expects DigiPlus to maintain leverage below 0.5 times over the next 12 to 18 months, absent major acquisitions or investments. The company had P10.5 billion in cash and equivalents as of June 30, 2026.
Moody’s said the rating assumes continued regulatory tightening but not a nationwide ban on online gaming. Such a prohibition would likely trigger a multi-notch downgrade because online gaming accounts for most of DigiPlus’ revenue.
The B1 rating is five notches below Moody’s scorecard-indicated Baa2 outcome, reflecting regulatory exposure, DigiPlus’ relatively short operating track record, and its growth appetite.
