GSIS Faces Backlash Over Online Gambling Investment

Public trust in the Government Service Insurance System (GSIS) has been rattled after revelations that the state-run pension fund invested heavily in an online gaming company — despite mounting pressure to ban such activities in the Philippines.

Good to Know

• Investment in DigiPlus: GSIS spent over PHP1 billion on the iGaming firm.
• Stock value drop: Shares purchased at PHP65.30 are now worth just PHP13.68.
• Broader concerns: Senate leaders want a total ban on online gambling.

Senator Risa Hontiveros, one of the most vocal critics of the country’s offshore gaming sector, said she was shocked to discover that GSIS allocated PHP1 billion (about US$17.4 million) to DigiPlus Interactive Corp. The senator questioned why the pension fund for teachers, police officers, and other government workers would risk members’ contributions on an industry she believes harms Filipino communities.

A Senator’s Sharp Rebuke

Speaking on the Senate floor, Hontiveros did not hold back.

“You heard that right, Mr. President and dear colleagues — GSIS invested over PHP1 billion in online gambling. Those shares were bought at a peak of PHP65.30 and have since dropped to PHP13.68,” she said.

She added that countless Filipinos have been driven into deep debt through e-gambling, often made easier through digital wallets and payment apps. “For some, it cost them their lives, and all it took was a single tap,” Hontiveros stressed.

Hontiveros is not alone in her concerns. Senate President Juan Miguel Zubiri and Senator Joel Villanueva also support a complete ban on online gambling. Until then, Hontiveros has filed a bill seeking to block the use of e-wallets and super-apps for placing bets.

Controversial Investment Choices

The DigiPlus stake isn’t the only GSIS investment raising eyebrows. Hontiveros also flagged the fund’s 0.82% holding in Del Monte Pacific, which she says is struggling under US$2.3 billion in debt. According to her, the investment has already generated an estimated PHP19.1 million paper loss, a drop of more than 32%.

She accused GSIS of breaching the “guardrails” meant to safeguard its investment decisions, pointing to earlier findings from the Commission on Audit. In July, the Office of the Ombudsman suspended GSIS President and General Manager Jose Arnulfo “Wick” Veloso and six other officials over what it described as questionable investments. The audit said GSIS had invested PHP2.3 billion in three companies without a proven track record of profitability in the past three years.

GSIS Responds

GSIS, which has been operating since the 1930s, said it “fully supports transparency and accountability” and will work with regulators reviewing the DigiPlus deal.

The fund emphasized that it will conduct a full review of its charter, investment guidelines, and risk thresholds — particularly for sensitive or high-risk sectors. “Still, we recognize that public trust must be continuously earned,” GSIS noted.

Despite the controversy, GSIS remains financially strong on paper. It serves 2.74 million members and pensioners, with total assets of PHP1.88 trillion and a net income of PHP76.82 billion as of June, up 31% year-on-year. Over the last five years, it has averaged a 6.75% return on investments.

FAQ

What is DigiPlus?

DigiPlus Interactive Corp. is a Philippine Stock Exchange-listed company that ranks No. 233 on the Fortune Southeast Asia 500 list. It markets itself as a digital entertainment firm that blends technology with online gaming experiences.

Why is the GSIS investment controversial?

Critics say the pension fund is risking public employees’ retirement savings on industries tied to gambling, which many lawmakers want to ban outright.

Is GSIS financially stable despite the controversy?

Yes. Based on its latest financial reports, GSIS says the Social Insurance Fund is secure and actuarially sound.

Summary

The GSIS investment in DigiPlus has triggered heated debate in the Philippines, with top senators questioning the wisdom of placing pension money into the online gambling sector. While GSIS insists it will review its investment policies and cooperate with oversight bodies, political pressure for stricter rules on gambling — and on how public funds are managed — continues to grow.

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