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South Korean Firm Buys IGT’s Online Casino DoubleDown

South Korean Firm Buys IGT s Online Casino DoubleDown

International Game Technology (IGT) has announced it no longer has interest in running social casino app DoubleDown and has negotiated its sale. The buyer is South Korean DoubleU Games, and the purchase price is $825 million.

When IGT bought DoubleDown in 2012, it paid $500 million for it.

The company’s decision was motivated by an 11.7% decline in revenue from 2015 as well as a significant drop in the number of active users of the app.

When IGT purchased DoubleDown, it planned to penetrate Nevada’s online gaming market. However, the company’s expectations did not transform into reality due to lack of liquidity.

Five years ago, IGT shut down its European online poker network for the same reason.

As of now, online casino gaming is legal only in two more states – New Jersey and Delaware. The market is estimated at $200 million, which is pathetic as compared to the social casino game potential valued at $4.5 billion.

According to media reports, IGT has about $8 billion in debt.

The deal with DoubleU Games will provide IGT with ongoing royalty payments in exchange for offering its library on DoubleU Games’ social casino platforms.