Philippines-listed and licensed online gaming operator DigiPlus Interactive Corp is to gain a foothold in the country’s land-based casino sector after agreeing to acquire a controlling stake in International Entertainment Corp, the parent company of New Coast Hotel Manila.
In a filing on Monday, Hong Kong-listed International Entertainment said it had signed an agreement with DigiPlus for the latter to subscribe to International Entertainment notes worth up to HKD1.60 billion (US$205.8 million). Once fully converted, the notes would give DigiPlus a 53.89 percent stake in International Entertainment based on the enlarged share capital.
The agreement remains subject to shareholder approval, according to Monday’s announcement.
Since last year, there had been media reports suggesting potential interest from DigiPlus in entering the Philippines’ land-based casino sector.
On Friday, Wilfredo Pielago, chief finance officer of DigiPlus, said at an event hosted by the Philippine Stock Exchange that regarding the “plan to acquire a physical casino, we appreciate the value that it might deliver to us, especially considering we have high-value users” in the firm’s digital platforms.
He added: “Based on research, there would be an incremental benefit if we were to acquire a physical site.”
International Entertainment took over the casino operations at the New Coast Hotel Manila property (pictured in a file photo) in May last year, under a provisional gaming licence granted by the country’s gaming regulator, the Philippine Amusement and Gaming Corp (Pagcor).
The Hong Kong-listed firm saw its annual loss widen to HKD282.1 million in the 12 months to June 30, from nearly HKD132.0 million in the prior financial year, it said in a September filing.
International Entertainment is currently redeveloping New Coast Hotel Manila into an integrated resort. The company has committed to invest at least US$1.0 billion in the revamp effort.
According to Monday night’s filing, the completed resort will comprise a gross floor area of at least 250,000 square metres (2.69 million sq. feet), more than 800 five-star hotel rooms, and a minimum of 20,000 square metres of retail, gaming, dining, leisure and shopping facilities.
International Entertainment said around HKD716.4 million of the funds raised through the deal with DigiPlus would be allocated to working capital, as well as to finance the upgrades to New Coast Hotel Manila.
The company said a further HKD489.2 million would be used to repay promissory notes, while HKD392.4 million would be allocated to settling outstanding bank loans.
Explaining the rationale behind the deal, International Entertainment stated: “The board has considered various ways to raise funds and believe the subscription to be beneficial to improve and strengthen the group’s liquidity and financial position on a longer-term basis as the notes are of a five-year tenor.”
It added: “In the event that the subscriber converts part or the full amount of the notes into the conversion shares, it will also broaden the shareholder and capital base of the company.”
International Entertainment stated that DigiPlus “intends to expand and diversify its business into the casino and gaming sector in the Philippines,” and “considers the investment in the notes an attractive opportunity to pursue its strategic initiative in enhancing its presence in the Philippine gaming industry”.
DigiPlus reported third-quarter net income of PHP1.71 billion (US$29.0 million), down 51.4 percent year-on-year. That was on revenues of PHP19.05 billion, flat from a year earlier.
In the Philippines, DigiPlus runs BingoPlus, described as the country’s first government-approved online bingo platform. It also operates ArenaPlus, a sportsbook, and GameZone, a platform for casual and arcade gaming. One of the group’s other units operates casino slot arcades in the country.
The firm has been eyeing international expansion. DigiPlus paused operations of its gaming platform in Brazil in mid-October, less than a month after launch, pledging a “full-scale relaunch in early 2026”.
In late September, DigiPlus said it had “formally filed” three online-related licence applications with the Western Cape Gambling and Racing Board in South Africa.
