DigiPlus Interactive Corp., the operator of BingoPlus, ArenaPlus, and GameZone, is facing heightened market attention following reports that it could purchase a controlling interest in City of Dreams Manila from Melco Resorts & Entertainment. While speculation intensifies, the company emphasized in a disclosure on Friday that no binding deal has been reached.
“The company continues to evaluate potential acquisitions that may complement its existing digital assets as part of its strategic expansion program,” DigiPlus said in a filing for the Philippine Stock Exchange. It added that “no definitive agreements or plans have been finalized at this time,” a clarification requested after media reports suggested the firm was leading negotiations for the integrated resort.
The rumors began when Bilyonaryo named DigiPlus as the most likely buyer of Melco’s stake. According to the report, discussions with Melco have been underway for several months, though complicated by DigiPlus’s volatile share price, which has dropped by nearly two-thirds from a peak of ₱65 earlier this year.
Potential Benefits and Challenges
Market analysts have pointed out that acquiring City of Dreams could provide DigiPlus with strategic advantages. One of the strongest incentives lies in taxation. As a digital-only gaming operator, DigiPlus currently pays about 30% in taxes. If it transitions into the integrated resort sector, the company may qualify for incentives that bring effective tax rates closer to 21%, offering substantial savings.
Such financial relief could help counter recent headwinds. DigiPlus has reported declines in certain revenue streams due to stricter government rules on e-wallet use and advertising for online gaming platforms. Entering the resort business could diversify earnings while opening new growth opportunities.
City of Dreams, built with an investment of around $2.4 billion since 2009, has been a cornerstone of Melco’s Philippine operations. However, Melco has shifted toward an “asset light” strategy after years of losses and increasing debt. In May, the company confirmed it was shortlisting potential buyers, though no deal has been finalized.
Expansion Beyond the Philippines
DigiPlus’s consideration of a large-scale acquisition aligns with its broader push to grow internationally. The firm is preparing to introduce its first overseas brand, GamePlus, in Brazil, with a soft launch scheduled for next week. Another platform, BingoPlus, is expected to follow in 2026.
The board has also approved an expansion into South Africa as the next step in its international strategy. This global push reflects DigiPlus’s effort to reduce reliance on the Philippine market and mitigate risks tied to regulatory uncertainty at home.
Despite near-term pressures, DigiPlus’s financial performance has shown resilience. For the first six months of the year, net income rose 61% year-on-year to ₱8.4 billion, supported by new products and gaming licenses. Revenues also jumped 47% to ₱47.78 billion from ₱32.56 billion the prior year.
Investor sentiment reflected cautious optimism on Friday, with DigiPlus shares climbing ₱1.40, or 6.29%, to ₱23.65 apiece. This was against a 0.50% rise for the benchmark Philippine Stock Exchange index.
Looking Ahead
For now, DigiPlus maintains that it is still exploring “strategic opportunities” without committing to any specific transaction. But industry observers argue that taking control of City of Dreams Manila could help the company balance the risks of its online gambling ventures with the stability of a physical resort.
If realized, the acquisition could also allow DigiPlus to expand its remote gaming services by leveraging City of Dreams’ land-based facilities as streaming hubs. However, the deal remains speculative until both sides confirm a definitive agreement.
