The Government Service Insurance System (GSIS) of the Philippines recently sparked public and political backlash for investing over 1 billion pesos in the local gaming platform DigiPlus Interactive Corp. Facing pressure, GSIS officially responded on August 6, asserting that the investment was legal, safe, and open to a comprehensive review.
In its statement, GSIS emphasized that as of June 2025, its total managed assets had reached 1.88 trillion pesos, with a net operating income of 76.8 billion pesos, a year-on-year increase of 31%, and an average five-year investment return rate of 6.75%. GSIS stated that the investment in DigiPlus was "controllable in risk" and did not undermine the robustness and long-term security of the pension fund.
However, this stance did not quell external doubts. Philippine Senate Minority Deputy Leader Risa Hontiveros recently criticized in a privilege speech: "This investment is shocking." She pointed out that GSIS bought into DigiPlus at a high share price of 65.30 pesos per share, and now the stock has fallen to 13.68 pesos, significantly shrinking its book value.
"GSIS is using the hard-earned retirement funds of teachers, nurses, police officers, and other civil servants. How can they gamble these funds on high-risk gaming stocks? This runs counter to the government's policy of combating online gambling," Hontiveros publicly questioned in the Senate.
Another key concern is the turmoil within the GSIS executive ranks. Last month, its President and General Manager Jose Arnulfo “Wick” Veloso and six other executives were preemptively suspended, leading to questions about procedural flaws or interest transmission in the investment.
In response, GSIS stated it would "fully cooperate" with the relevant regulatory authorities' investigations and promised to re-examine its investment charter and policies, especially regarding the investment thresholds and risk control standards for "high-risk or controversial industries."
This incident comes at a time when the Philippine government is tightening regulations on the gaming industry, becoming a focal point for public fund management and state capital governance. Analysts point out that the controversy sparked by GSIS's bet on gaming stocks may serve as a cautionary example for future public fund investment practices in the Philippines.
