At a September 2025 investor conference, IGS Chairman Ko-Chu Lee told the room that the company's Southeast Asia licensing business had long gone by another name: JILI.
It was an odd thing to hear, because JILI appears nowhere in IGS's 2024 or 2025 financial statements, even though the region it describes generated 54% of the company's revenue in both years. Grizzly Research, which holds a short position in IGS, argues that gap conceals a network of related-party dealings and gambling operators that could expose IGS to regulatory action and a sharp cut to its dividend. The firm's report pairs the chairman's remark with trademark filings, code analysis, and operator research to build its case.
Ticker: 3293.TWO (International Games System Co., Ltd.)
Research Firm: Grizzly Research
Report URL: https://grizzlyreports.com/igs/?ref=shortreport.fyi
Position Disclosure: Short position (per the report's standard disclosure)
Thesis
Grizzly Research's case centers on a disclosure gap between what IGS's chairman said on record and what the company's filings show.
- Undisclosed JILI Brand: Chairman Ko-Chu Lee told investors on September 26, 2025 that IGS "use[s] the JILI product line for licensing in Southeast Asia," a region that made up 54% of both 2024 and 2025 revenue, yet JILI is absent from IGS's consolidated financial statements, while TaDa is named nearly 30 times.
- Trademark Trail: FaDa B.V., a 100%-owned IGS subsidiary in Curaçao, is listed as the applicant on JILI trademark filings in the Philippines (January 11, 2024) and Indonesia (August 26, 2024), linking an IGS entity to the brand's intellectual property even as JILI's ultimate economic owner remains undisclosed.
- Underground Twin, alleged: An unnamed Taiwan gaming-industry source alleges JILI and TaDa are "essentially the same company," with JILI licensing games to underground operators in Thailand, Vietnam, Malaysia, and the Philippines while TaDa serves regulated, licensed markets.
- Shared Code, Shared Staff: The report cites near-identical source code and CSS class names between TaDa and JILI games, a JILI game description reading "Come with TaDa's Bonus Hunter," and a LinkedIn profile showing a JILI spokesperson also employed at IGS and TaDa for over three years.
- Opaque Money Trail, alleged: The report alleges Southeast Asia licensing revenue, over half of consolidated sales, may move through money-transfer intermediaries, inter-company licensing fees between JILI and TaDa, or cryptocurrency, none of which IGS filings disclose.
- Illegal-Market Distribution: JILI games were found offered by 1xBet, OKVIP/JUN88, SBOBET, BK8, bj88, and 8xBet, platforms tied in cited media and police reporting to criminal gambling, money laundering, and trafficking-linked operations, often with cryptocurrency payment options.
- Dividend at Risk: Licensing carries roughly 97.6% gross margin and funds a historical dividend payout of 90% or more of net income; the report models a 20% earnings decline combined with a payout cut to 60% as reducing dividends by approximately 47%.
- Disclosure Gap: IGS provides no country-by-country breakdown of Southeast Asia revenue, does not name the operators it licenses to, and has not reconciled which entities collect revenue or bear regulatory exposure.
Catalysts
- Taiwanese inquiry risk: Taiwanese regulatory or law-enforcement inquiry into IGS's financial reporting, related-party disclosures, and possible cryptocurrency payment flows (pending regulatory decision), which could trigger restatements or penalties.
- Philippine scrutiny: Further scrutiny of JILI's role in Philippine illegal gambling following the August 2025 media report naming it as IGS-owned (ongoing), which could pressure IGS to clarify ownership.
- European license review: UK Gambling Commission or other European licensing review of TaDa if its content is confirmed on illegal-market operators (no date specified), which could threaten TaDa's regulated licenses.
- China enforcement exposure: Enforcement action in China, where the report says TaDa games appear on Fonbet and IGS holds a 78%-owned mainland subsidiary (no date specified), which could disrupt a disclosed revenue stream.
- Next filing disclosure test: Next quarterly filing, which could show whether TaDa's rise to the company's second-largest business line in the first two months of 2026 continues, and whether any JILI-related disclosure changes follow.
- Revenue and settlement pressure: Any decline in licensing revenue, operator suspensions, or blocked settlements, which would flow directly through IGS's near-100% margin structure and its high dividend payout ratio.
Company Response
The report does not indicate that the author sought comment from IGS, TaDa, JILI, or FaDa B.V. No response from IGS or its affiliates to these allegations is reported.
Notable Details
- IGS reported NT$21.50 billion in gross profit on NT$22.03 billion in 2025 revenue, a 97.6% gross margin, almost entirely generated by online-game licensing.
- One JILI game's own description reads "Come with TaDa's Bonus Hunter," a direct textual overlap the report cites as evidence the two brands share development resources.
- Android review counts for Golden HoYeah, IGS's fifth-ranked revenue product, fell sharply in Thailand, Malaysia, and Indonesia after 2020 even as its third-party grossing rankings held up; Google Trends reportedly showed unusually high interest in the game from Myanmar, a market IGS never disclosed as material.
- TaDa, which the report says holds UK and Canadian licenses, was found on Fonbet's China-facing gambling offering despite China's gambling ban, and TaDa job postings sought staff to develop business in Turkey's iGaming market despite Turkey's casino ban.
"In short, IGS's current financial performance appears unsustainable once the risks attached to its core Southeast Asia business are properly understood."
This line appears in the report's conclusion, condensing Grizzly Research's argument that IGS's margins, growth, and dividends rest on inadequately disclosed Southeast Asia exposure.
FAQs
What is IGS (3293.TWO) and how exposed is it to gambling-related allegations?
International Games System Co., Ltd. trades on the Taipei Exchange as 3293 and generates most of its revenue from licensing online games to operators across Asia. Grizzly Research's report focuses on its Southeast Asia licensing segment, which made up 54% of 2025 revenue and which the firm ties to JILI Games, a brand largely absent from IGS's public filings.
What does International Games System Co., Ltd. actually do as a business?
Per the report, IGS was formally established in 1991 and originally built arcade machines before shifting toward B2B online-game licensing, which made up roughly 68% of its 2025 revenue. The company also reported a 97.6% gross margin in 2025 and has historically distributed 90% or more of net income as dividends.
What does Grizzly Research allege about IGS and JILI Games?
Grizzly Research alleges that JILI, which IGS Chairman Ko-Chu Lee named as the Southeast Asia licensing product line at a September 2025 investor conference, may be an undisclosed related entity tied to IGS through trademark filings, shared code, and personnel overlaps with TaDa. The firm holds a short position in IGS and says the relationship could expose IGS to regulatory action if confirmed.
What is JILI Games and how is it connected to IGS?
JILI is described in the report as the product line IGS's chairman said underlies its Southeast Asia licensing business, though JILI does not appear as a subsidiary or brand in IGS's 2024 or 2025 financial statements. A wholly owned IGS Curaçao subsidiary, FaDa B.V., is listed as the trademark applicant for JILI marks in the Philippines and Indonesia.
Could this report affect IGS's dividend?
The report models scenarios in which earnings pressure combined with a lower payout ratio would meaningfully cut dividends; for example, a 20% net-income decline paired with a payout-ratio drop from 90% to 60% is estimated to reduce dividends by about 47%. This matters because licensing revenue, which the report links to the disputed JILI relationship, carries near-100% gross margins and funds the bulk of IGS's historical payout.
Has IGS responded to the allegations in the Grizzly Research report?
The report does not indicate that IGS, TaDa, JILI, or FaDa B.V. were asked for comment, and no public response from the company is reported.
Which gambling operators does the report link to JILI games?
The report says it found JILI games offered through 1xBet, OKVIP/JUN88, SBOBET, BK8, bj88, and 8xBet, platforms that cited media and police reporting have connected to alleged criminal gambling, money laundering, and trafficking-linked operations in Southeast Asia. Many of these platforms reportedly accepted cryptocurrency payments alongside JILI content.
Disclaimer: This summary is not primary research and does not constitute investment advice. It is a brief overview of a detailed equity research report authored by the firm, organization, or source referenced in this article or at https://grizzlyreports.com/igs/, which contains extensive evidence, regulatory filings, and analysis; readers are encouraged to review the full report there for a comprehensive understanding. The content provided in this publication is not authored or originated by us — we act solely as a distributor and do not endorse, verify, or take responsibility for the accuracy, completeness, or reliability of the information presented. This publication is for informational purposes only and should not be construed as legal, business, investment, or tax advice. Always conduct independent due diligence and consult qualified professionals before making any decisions based on the information contained herein. We disclaim all liability for any loss or damage arising from reliance on third-party content, and the views expressed are solely those of the respective source and do not necessarily reflect our own.