(Bloomberg) — The world’s hottest gambling stock is benefiting from strong demand for online betting in the Philippines, even as the industry faces increasing global scrutiny.

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DigiPlus Interactive Corp. shares have risen 145% so far this year, more than any other casino stock with a market value of over $1 billion. The stock, which hit a record high on Friday, has risen 12-fold in two years thanks to the shift to online during the pandemic.

The gains come amid growing concerns about the impact of online gambling on society worldwide. The Philippines last month banned offshore companies that cater to Chinese gamblers as part of efforts to curb crimes such as money laundering.

DigiPlus is capitalizing on its leading position in the domestic online gaming market, with revenues up 525 percent last quarter compared to a year earlier. The company, formerly known as Leisure & Resorts World Corp., first established itself as a bingo hall operator before changing its name and focusing on tech-savvy younger players with disposable income.

“We believe the growth trajectory is sustainable,” said Gabryle Aguila, head of equity research at Unicapital Securities Inc. “The well-executed foray into the digital space has led to the growth of a brand that has been known for decades.”

Financial success has also contributed to the attractiveness of the stock. DigiPlus’s net profit rose by around 400 percent to 3.2 billion pesos ($57 million) in the second quarter compared to the same period last year. That is more than double the profit posted by the Philippine casino operator Bloomberry Resorts Corp.

DigiPlus has stated that it is not affected by the offshore ban, although lawmakers are also considering possible regulations of local online gambling due to the societal impact. In the meantime, the company has been trying to diversify its operations abroad and recently announced that it has applied for a license in Brazil.

The stock is sparsely covered and has three buy recommendations and no hold or sell recommendations. The average price target implies a 22 percent increase over the next twelve months. DigiPlus currently trades at 6 times expected earnings, compared to the five-year average of 7.4. Shares rose as much as 2.7 percent on Wednesday.

According to Unicapital’s Aguila, the strong earnings should enable further gains in the second half of the year. “DigiPlus is undoubtedly on a strong growth trajectory and is continuously supporting its share price with solid fundamentals,” he said.

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(Updated with price data from Wednesday)

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