International Entertainment Sets Philippine Online Gaming Launch Target

Hong Kong-listed International Entertainment Corporation is targeting the commercial launch of its Philippine online gaming operations in late August or September. An agreement with its DigiPlus-linked technology partner allocates 3% of gross gaming revenue to its subsidiary and 97% to the partner.

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Initial game offerings are undergoing trial runs and are expected to begin commercial operations during the same period, according to a supplemental filing with the Hong Kong Stock Exchange.

Under the cooperation agreement, New Coast Leisure Inc., a subsidiary of International Entertainment, will serve as the licensed online gaming operator and Gaming System Administrator. Total Gamezone Xtreme Incorporated, a wholly owned subsidiary of DigiPlus Interactive Corporation, will provide the gaming software, content, aggregation, integration, and technical support.

The revenue-sharing ratio is subject to deductions, including PAGCOR’s share, gaming licence fees, audit fees, foundation contributions, franchise taxes, and other applicable charges.

Electronic Casino Games First

The initial rollout will focus on electronic casino games. These include games using certified random number generators, electronically delivered table games, and arcade-style titles classified by PAGCOR as specialty games.

The games will use PAGCOR-approved computer-based software and will not involve live human dealers.

Electronic bingo, online poker, and other specialty games intended to operate through remote gaming systems have not yet begun commercial operations. International Entertainment said NCLI had obtained the required licenses, accreditations, and approvals and had posted the performance cash deposit required by PAGCOR.

Access And Expansion Plans

Only those who are physically within the borders of the Philippines will have access to the platform. This includes citizens from other countries and tourists, provided that they fulfill the requirements of identity verification and know-your-customer protocols.

The current cooperation agreement does not cover integrated resorts offering land-based casino games through online platforms. International Entertainment plans to expand in a later phase into land-based electronic gaming terminals, including online table games and online slot machines.

The company said no additional license would be required before its integrated resort offers either of those products.

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Internal Controls Reviewed

An independent consultant reviewing the proposed internal control system identified 3 medium-risk issues. Previously blacklisted individuals could be approved automatically without enhanced review, while manual blacklist updates made during system downtime were not periodically reconciled.

The review also found that NCLI had stored some customer risk profiles in paper form, contrary to AMLC guidelines on digitising customer records. The filing said no significant internal control deficiencies were identified.

NCLI has agreed to adopt the recommended enhancements. The work is expected to be completed around late August or September, while the consultant’s report is due to the board around December 2026.

Gaming Segment Returns To Profit

The online gaming update was released alongside International Entertainment’s unaudited results for the 12 months ended June 30. Group revenue increased by 50.6% year-on-year to HK$852.5 million (US$109 million).

Gaming operations revenue rose by 60.7% to HK$819.4 million (US$105 million), representing 96.1% of group revenue. The gaming segment recorded a profit of HK$92.0 million (US$11.8 million), reversing a segment loss of HK$234.9 million (US$30.0 million).

Casino operations contributed HK$551.8 million (US$70.6 million), while platform service commissions contributed HK$125.2 million (US$16.0 million). Income from leasing gaming venues more than doubled to HK$142.5 million (US$18.2 million).

Loss Widens On Non-Cash Charge

Despite the stronger operating performance, the group’s loss attributable to owners widened by 72.4% to HK$486.4 million (US$62.2 million). The result included a non-cash fair value loss of HK$424.9 million (US$54.3 million) tied to HK$1.6 billion (US$205 million) in convertible notes issued to DigiPlus.

International Entertainment said its attributable loss narrowed by 78.2% when that item was excluded. The company is preparing for the planned launch while completing the recommended enhancements.

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Source: Asia Gaming Brief