Philippines pension manager defends iGaming investment
Summary
The Government Service Insurance System (GSIS), the Philippines’ state pension fund, has come under fire after investing PHP1 billion (US$17.4m) in iGaming firm DigiPlus. Senator Risa Hontiveros publicly criticised the move on the Senate floor, pointing out that shares bought at PHP65.30 have since fallen to PHP13.68 and calling the investment inconsistent with protections for members’ contributions.
The investment is part of wider scrutiny: the Office of the Ombudsman has suspended GSIS president Jose Arnulfo “Wick” Veloso and six others over questionable investments, and the Commission on Audit flagged PHP2.3 billion placed into three companies without proven profitability. GSIS has defended its transparency and financial strength and said it will review its charter, investment policies and sectoral guidelines amid the controversy.
Source
Source: https://igamingbusiness.com/gaming/philippines-pension-manager-defends-igaming-investment/
Key Points
- • GSIS invested PHP1 billion in DigiPlus, a Philippine Stock Exchange-listed iGaming company.
- • Senator Risa Hontiveros condemned the purchase and highlighted the sharp fall in DigiPlus share price.
- • The Office of the Ombudsman suspended GSIS leadership in July over questionable investments.
- • The Commission on Audit reported GSIS placed PHP2.3 billion in three companies lacking proven profitability, raising concerns about high-risk exposure.
- • GSIS pledged transparency, said it will cooperate with oversight bodies and will review its charter, investment rules and risk thresholds.
- • GSIS reports 2.74 million members, PHP1.88 trillion in assets and a five-year average return of 6.75%; it maintains the fund is actuarially sound.
- • The issue feeds into a broader political push — including proposals to ban online gambling and restrict e-wallets for wagering — led by Hontiveros and others.
Context and relevance
This story matters at the intersection of public finance, regulation and the fast-changing iGaming sector. Pension-fund allocations into high-risk or politically sensitive industries often prompt calls for stricter governance and can lead to leadership changes and policy reforms. For investors, regulators and GSIS members, the episode highlights tensions between chasing returns and protecting contributors’ savings amid growing scrutiny of online gambling’s social impact.
Why should I read this?
Quick and blunt: if you care about who manages public pensions, or how politics and social concerns shape investment decisions, this is worth your two-minute skim. It’s not just about gambling — it’s about accountability, risk and whether a big public fund should be in a sector under active political fire.
Source
Source: https://igamingbusiness.com/gaming/philippines-pension-manager-defends-igaming-investment/