IGT's Online Social Casino DoubleDown Growing Fast

Published Monday, August 05, 2013 - Online-Casinos.com
IGT's Online Social Casino DoubleDown Growing Fast

Sometimes the smallest investment can reap huge rewards and sometimes just being in the right place at the right time bargains can be found.

Such is the case for International Game Technology’s acquisition of the free-to-play social gaming site DoubleDown. IGT bought the web location for $500 million recently with mixed reviews from analysts.

Cameron McKnight of Wells Fargo Securities said, “In our view, DoubleDown is turning into one of IGT’s best acquisitions, which we believe can continue to grow profitably,” The virtual money spend by the average user of DoubleDown grew by 60 percent which is an application found on the Internet, Facebook and mobile devices, and it was responsible for $61.4 million of IGT’s $579 million in revenue for the quarter that ended June 30 2013.

Chad Beynon of Macquarie Securities commented, “IGT continues to show improving results out of what is becoming a solid business,”

Managing Director Bill Lerner from the Union Gaming Group which originally offered a critical point of view on the acquisition admitted that IGT’s interactive business was helping offset a decline in revenue from slot machine sales. Lerner explained, “The brightest spot in the quarter for IGT was interactive, which showed both sequential and year-over-year growth,”

DoubleDown Casino is the third highest grossing Facebook application and the top full-scale social casino on the Internet. Chief Financial Officer for IGT John Vandemore, commented, “It’s not often we can talk about a 105 percent increase in revenues, but DoubleDown allowed us to do that,”

IGT has been converting its library of slot machine titles into virtual slots like those on the DoubleDown Casino web site. Vandemore continued to add, that the firm’s goal is to develop games and titles that can be used across multiple platforms by traditional casinos, online casinos and social gaming sites. “We will continue to focus on our core competency. We are always investing time and energy into creating good games,” he said.

Related news

Return to Latest News