Philippine President Marcos delivered his fourth State of the Nation Address (SONA) on July 29, without mentioning online gambling or POGO (Philippine Offshore Gaming Operators), a silence that sparked heated market discussions. Investors generally interpreted this as "little hope for a short-term ban," leading to a surge in gambling stocks, with DigiPlus Interactive Corp., led by the Tanco Group, soaring 11.06% to close at 35.65 pesos per share, reaching a peak increase of 16% during the session, rebounding over 91% from the low of 19.52 pesos on July 17.
DigiPlus, the parent company of popular gambling brands such as BingoPlus, ArenaPlus, and GameZone, has been a leader in the Philippine online gambling sector. Although Congress is considering several bills involving "complete prohibition" or "stricter regulation," the President chose to avoid this highly sensitive topic in his SONA. Garcia, head of research at AP Securities, said: "Investors interpret the 'silence' as no immediate forced gambling ban, and market sentiment rebounded immediately."
However, Garcia also warned that stronger regulation is inevitable. Brokerages such as Unicapital and DragonFi also stated that while online gambling is an important economic contributor, moral controversies and social backlash cannot be ignored, advising investors to remain cautious about gambling concept stocks like DigiPlus.
Eusebio Tanco, chairman of DigiPlus, stated at the company's annual shareholders' meeting: "We act properly, comply with regulations, and pay taxes according to the law, and should not be targeted for rectification." He emphasized the company's commitment to "responsible gambling" and believed that the government should "regulate rather than ban," combating illegal platforms while ensuring tax revenue and job stability.
Market analysts generally believe that Marcos's avoidance of the gambling issue in this SONA may be to coordinate a regulatory scheme that balances economic and social responsibilities. However, some voices pointed out that the policy vacuum makes gambling stocks more speculative, and future stock price fluctuations could be more severe.
Beyond its local operations in the Philippines, DigiPlus is accelerating its global expansion, planning to enter the South African market and apply for a gambling license, and its business in Brazil is also accelerating to expand growth opportunities.
Additionally, competitor Bloomberry Resorts Corp. also saw its stock price rise by 3% due to SONA not addressing gambling, and it launched a new electronic casino brand "MegaFUNalo," seen as direct competition to DigiPlus.
It is noteworthy that in the SONA, Marcos heavily criticized officials who neglected flood prevention but did not touch on the gambling issue. This "silence" was interpreted by investors as maintaining the status quo in the short term, giving licensed operators like DigiPlus breathing room. The direction of online gambling regulation remains one of the most sensitive issues in Philippine political and economic discussions.
