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DigiPlus Interactive Corp is set to further extend its reach beyond online gaming markets and into the Philippines’ land-based casino space, after significantly investing in International Entertainment Corp, the owner of New Coast Hotel Manila. This would be a marked pivot by DigiPlus as the company expands in a time when many online operators are facing headwinds.
Securing Control Through Subscription Agreement
In a filing made late Monday, IEC disclosed that DigiPlus has entered into a Subscription Agreement to acquire notes totaling HK$1.6 billion (roughly US$206 million). Upon converting these notes, DigiPlus will hold a controlling interest of 53.89 percent in IEC based on the enlarged share capital.
While the conversion would ordinarily compel DigiPlus to make a mandatory general offer to purchase all other outstanding shares, the company intends to seek a Whitewash Waiver from Hong Kong’s Securities and Exchange Commission. This waiver, if approved by shareholders in an Extraordinary General Meeting, would exempt DigiPlus from launching such an offer. Should the waiver not be granted or receive shareholder approval, DigiPlus will decide whether to proceed with the subscription and the subsequent mandatory offer.
Expanding Beyond Online Gaming
The Subscription Agreement confirms earlier speculation regarding DigiPlus’s interest in acquiring a land-based casino asset as a way to strengthen and diversify its business portfolio. DigiPlus, led by Eusebio Tanco, currently operates the country’s top online bingo platform BingoPlus, sportsbook ArenaPlus, and the growing casual and arcade gaming platform GameZone. Beyond the Philippines, DigiPlus is also in the process of entering the Brazilian and South African iGaming markets.
New Coast Hotel’s Path to an Integrated Resort
IEC is actively working on transforming New Coast Hotel Manila into a full-scale integrated resort following a provisional license issued in 2023 by the Philippine Amusement and Gaming Corp (PAGCOR). The company previously took over complete operational control of the hotel’s casino from PAGCOR last year and has committed to investing at least US$1 billion towards the project.
Details from the Monday filing show the planned integrated resort will include a minimum of 250,000 square meters of gross floor area, featuring at least 800 luxury 5-star hotel rooms and retail spaces covering 20,000 square meters that will house casinos, restaurants, leisure facilities, and shopping arcades. Around HK$716 million (US$92 million) of the subscription proceeds are earmarked for working capital, including upgrades to the New Coast property.
The company highlighted that the current scale of the hotel and casino operations falls short of the integrated resort’s requirements. Consequently, expansion of the hotel premises, enhancement of casino operations, and improvements to amenities such as the hotel and casino facilities themselves are necessary to achieve the transformation goal. Since receiving the provisional license, IEC has already begun allocating part of its investment toward these upgrades.
Financial Strengthening and Shareholder Base Expansion
Apart from capital expenditures, HK$489 million (approximately US$63 million) will be used to repay promissory notes, and an additional HK$392 million (US$50 million) will cover outstanding bank loans, enhancing the financial position of IEC.
The company stressed that the subscription is considered beneficial for improving liquidity and strengthening the group’s long-term financial standing, given that the notes have a five-year maturity. Should DigiPlus convert part or all of the notes into shares, it would expand both the shareholder base and capital foundation of IEC.
A Step Toward Diversified Growth in Philippine Gaming
DigiPlus’s move into the land-based casino space through IEC gives the company a stronger foothold at a time when regulatory changes continue to challenge the local online gaming sector. By taking control of a company set to develop a major integrated resort, DigiPlus is clearly signaling its plan to diversify its income sources and establish a bigger presence in the shifting Philippine gaming market.
The move also highlights DigiPlus’s long-term strategy: balancing its successful online gaming operations with real, on-ground assets in hospitality and land-based gaming. This move is expected to bring fresh enthusiasm to New Coast Hotel Manila’s plans of transforming into an integrated resort destination that stands out.
Source: Inside Asian Gaming (IAG)
