DigiPlus Emerges as Leading Candidate to Acquire Stake in City of Dreams Manila
DigiPlus on the Verge of Acquiring City of Dreams Manila Stake
DigiPlus Interactive Corp, the operator behind popular platforms like BingoPlus, ArenaPlus, and GameZone, is generating significant buzz as a potential buyer of Melco Resorts & Entertainment’s share in City of Dreams Manila. While no official confirmation has been made, industry insiders widely consider DigiPlus to be the prime contender for this acquisition of the integrated resort.
Melco’s Strategic Move to Streamline Assets Attracts DigiPlus
Recently, it was revealed that DigiPlus and Melco have engaged in negotiations for several months concerning a buyout. Led by billionaire Lawrence Ho, Melco adopted a strategy earlier this year focused on reducing its physical asset holdings. This approach prompted discussions to sell its Manila property, culminating in an auction process initiated by May, drawing interest from various buyers.
For DigiPlus, acquiring this property offers more than just real estate ownership. Known primarily for its online gaming operations, the company has encountered increasing regulatory scrutiny in the Philippines, including regulations around e-wallets, advertising, and the future landscape of online gambling. Expanding into land-based casinos would not only diversify DigiPlus’s business model but also provide access to favorable tax treatments applicable to integrated resorts. Industry experts note that this pivot could counterbalance recent declines in revenue and help restore investor confidence after DigiPlus’s share price dropped since June.
DigiPlus Considers Expanding into Physical Casinos Amid Online Gaming Challenges
City of Dreams Manila, operated by the Sy family’s Belle Corp, ranks among the premier casino resorts within the Philippines. Securing a stake in this venue would enable DigiPlus to blend both physical and digital gaming offerings, including augmenting live-streamed casino experiences from a robust land-based facility. Analysts view this potential acquisition as a strategic evolution for DigiPlus, merging its established online expertise with a traditional casino presence.
Despite the ongoing talks, DigiPlus has remained cautiously noncommittal in its public statements. In response to inquiries from the Philippine Stock Exchange, the company emphasized its ongoing pursuit of acquisitions to strengthen its digital portfolio but confirmed no binding agreements have been finalized to date. This measured stance aligns with prior responses to similar speculation about involvement with other casino properties.
This potential purchase emerges amid difficult conditions for Philippine casinos, which continue to grapple with diminished visitor numbers from major markets such as China and South Korea compared to pre-pandemic levels. Nonetheless, industry specialists believe that DigiPlus could realize significant long-term value by investing in a physical casino asset despite these challenges.
