Hong Kong-listed International Entertainment Corporation is targeting the commercial launch of its Philippine online gaming operations in late August or September under an agreement that allocates 3 percent of gross gaming revenue to its subsidiary and 97 percent to its DigiPlus-linked technology partner.
Initial game offerings are undergoing trial runs and are expected to begin commercial operations in late August or September, the company said in a supplemental filing with the Hong Kong Stock Exchange on Friday.
Under the cooperation agreement, International Entertainment subsidiary New Coast Leisure Inc. (NCLI) will serve as the licensed online gaming operator and Gaming System Administrator.
Total Gamezone Xtreme Incorporated (TGXI), a wholly owned subsidiary of DigiPlus Interactive Corporation, will provide the gaming software, content, aggregation, integration and technical support.
The agreement sets the GGR-sharing ratio at 3 percent for NCLI and 97 percent for TGXI, subject to deductions including PAGCOR’s share, gaming license fees, audit fees, foundation contributions, franchise taxes and other applicable charges.
Initial launch limited to electronic casino games
The initial rollout will focus on electronic casino games, including games using certified random number generators, electronically delivered table games and arcade-style titles that PAGCOR classifies as specialty games.
The games use computer-based software approved by the Philippine Amusement and Gaming Corporation (PAGCOR) and do not involve live human dealers.
Games intended to run through remote gaming systems — electronic bingo, online poker and other specialty games — have not yet begun commercial operations.
International Entertainment said NCLI had obtained the necessary licenses, accreditations and approvals for its online gaming operations, and had posted the required performance cash deposit with PAGCOR.
The platform will be available only to players physically located in the Philippines. Foreign nationals and tourists may register while in the country, subject to identity verification, know-your-customer and anti-money laundering requirements.
The cooperation does not currently cover integrated resorts offering land-based casino games through online platforms. The company plans to expand in a later phase into land-based electronic gaming terminals, including online table games and online slot machines, and said no additional license would be required before its integrated resort offers either product.
Internal control gaps flagged ahead of launch
An independent consultant reviewing the proposed internal control system found that previously blacklisted individuals could be approved automatically without enhanced review, and that manual blacklist updates during system downtime were not periodically reconciled. It also found NCLI had stored some customer risk profiles in paper form, contrary to AMLC guidelines on the digitization of customer records.
All three were rated medium-risk. The filing said the consultant identified no significant internal control deficiencies. NCLI has agreed to adopt the recommended enhancements, expected to be completed around late August or September, with the consultant’s report due to the board around December 2026.
Gaming segment swings to profit
The online gaming update was released alongside International Entertainment’s unaudited results for the 12 months ended June 30th.
Group revenue rose 50.6 percent year-on-year to HK$852.5 million ($109 million), while gaming operations revenue increased 60.7 percent to HK$819.4 million ($105 million), or 96.1 percent of the group total. The gaming segment recorded a profit of HK$92.0 million ($11.8 million), reversing a segment loss of HK$234.9 million ($30.0 million).
Casino operations contributed HK$551.8 million ($70.6 million) and platform service commissions HK$125.2 million ($16.0 million), while income from leasing gaming venues more than doubled to HK$142.5 million ($18.2 million).
Despite the stronger operating performance, the group’s loss attributable to owners widened by 72.4 percent to HK$486.4 million ($62.2 million), on a non-cash fair value loss of HK$424.9 million ($54.3 million) tied to HK$1.6 billion ($205 million) in convertible notes issued to DigiPlus. Excluding that item, the company said its attributable loss narrowed by 78.2 percent.
