DigiPlus Interactive [PLUS 14.82 unch; 244% avgVol] [link] released a statement after yesterday’s close to reassure investors that its business is “unaffected” by President Marcos’s ban on POGO (Philippine Offshore Gaming Operators) companies. In its statement, PLUS said: “DigiPlus is not a POGO or an Internet Gaming Licensee (IGL) as defined under Philippine laws.” PLUS CEO Andy Tsui said that PLUS’s “platforms will continue running without interruption, unaffected by the recent presidential announcement.” Shares of PLUS traded down by nearly 4% midday, but closed even after a surge in buying interest after the lunchbreak rescued the stock.
MB BOTTOM-LINE: It seems fitting that an industry that was born amid a shroud of secrecy and confusion would have this kind of impact even as it is being phased out. There’s a lot of confusion in the market right now coming from the lack of clarity from the government on what exactly is happening, but that’s probably a natural consequence of the President announcing the ban during a speech. It seems to have caught a lot of people (even in government agencies) flat-footed. Now would be a great time for PAGCOR to clarify both the licensees that will be impacted by the ban, and how it plans to phase those affected licensees out over the course of the next five months. I’m looking to get better clarity on the POGO/IGL situation, and when I understand it better, I’ll be sure to pass on what I’ve learned to MB readers. Until then, kudos to the PLUS team for getting out in front of its shareholders with useful information.
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