DigiPlus Faces 17% Revenue Drop Amid Philippine Economic Downturn

The gambling landscape in the Philippines is currently navigating a period of significant economic turbulence. DigiPlus, the recognized market leader, has been forced to commit to rigorous cost-saving measures as the nation deals with the fallout from international geopolitical tensions. During the first nine months of 2026, the operator reported a 17 percent year-on-year decline in net gaming revenue (NGR) after tax, which fell to 16.2 billion pesos. The company attributed this downturn to a weaker macroeconomic environment, primarily driven by conflict between the US and Iran, which has severely disrupted global supply chains and squeezed consumer discretionary spending.

Despite the decline in overall revenue, the company has managed to maintain a strong presence in the market. DigiPlus focused on a more effective deployment of advertising and promotional spending, alongside the optimization of gaming costs and operating expenses. This strategic shift resulted in an improved EBITDA margin of 22 percent and a slight rise in third-quarter EBITDA to 2.9 billion pesos. Furthermore, the operator saw its user base continue to grow. Average monthly active users increased by 3 percent quarter-on-quarter to 5.9 million, while the number of monthly active bettors and depositors rose by 5 percent to reach 4.9 million.

Numbers and facts

Detailed financial reports for the period between January and September 2026 highlight the scale of the challenges. DigiPlus reported that it paid a substantial 13.9 billion pesos in taxes and regulatory fees. The operator’s NGR after-tax margin, when measured against gross gaming revenue, now stands at 40 percent. This tax rate is comparable to those found in mature European markets, illustrating the high fiscal burden placed on licensed operators. While the company is managing its internal costs, the broader industry figures released by the regulator, PAGCOR, paint a more concerning picture for the sector.

“Our first nine months’ performance reflects the progress we are making in strengthening operating efficiency while building our user base and content.” - Ping Chen, President of DigiPlus

PAGCOR’s own revenue through the third quarter of 2026 was down 23.4 percent to 64.4 billion pesos, compared to 84.1 billion pesos during the same period in the previous year. The most significant hit was felt in the electronic gaming sector, where revenue plummeted by over 37 percent, dropping from 44 billion to 27.6 billion pesos. Licensed casinos, including PAGCOR’s own Casino Filipino and poker operations, also saw single-digit decreases. Despite these headwinds, the regulator contributed 45.3 billion pesos to nation-building initiatives during the first nine months of the year.

Background

The current downturn is not solely the result of global economics; domestic regulatory changes are also playing a part. Keith McDonnell, Director of KMI Group, noted that the regulator must strike a delicate balance to avoid fueling the grey market. Recent decisions, such as increasing advertising restrictions and removing certain payment options from GCash—a primary financial hub for Filipinos—have made it harder for legal companies to operate efficiently. These hurdles, combined with reduced discretionary income, have created a perfect storm for the Philippine gaming industry.

“I think [PAGCOR is] right in saying, from a macro point of view, the Middle East is a big factor on discretionary income. But aligned with that, they’ve had some direct decisions as well that have impacted [performance].” - Keith McDonnell, Director of KMI Group

Why it matters for German players

While the events are taking place in Asia, they serve as a case study for players in highly regulated markets like Germany. The German Interstate Treaty on Gambling 2021 (GlüStV 2021) establishes a framework that prioritizes player protection, similar to the goals of PAGCOR. In Germany, players are subject to a 1,000 Euro monthly deposit limit and a 1 Euro stake limit on virtual slot machines. These rules are designed to prevent financial overextension, especially during times of economic uncertainty. The situation in the Philippines shows how external economic shocks can affect even the largest gaming markets, making the stability of a licensed and supervised market even more important.

For residents in Germany, the key takeaway is to remain within the legal framework provided by the GGL (Joint Gambling Authority of the States). Using whitelisted operators ensures that players are protected by the LUGAS limit system and the OASIS exclusion database. As seen in the Philippines, when the legal market becomes too restricted or economically stressed, there is a risk of players moving to unregulated offshore sites. However, only GGL-licensed casinos provide the legal certainty that winnings will be paid out and that fair play is strictly enforced.

What it means for GGL-licensed casinos

For operators holding a German license, the DigiPlus report highlights the importance of operational efficiency. In a market where advertising is already heavily restricted and tax rates are high, companies must optimize their internal processes to remain profitable. The Philippine example shows that growing the user base is possible even during a revenue downturn if the content and user experience remain competitive. German operators must continue to focus on transparency and player safety to differentiate themselves from illegal MGA or Curacao-licensed sites, which do not offer the same level of legal protection under German law.