International Game Technology buys Double Down Interactive for $500M

International Game Technology has acquired DoubleDown Casino developer Double Down Interactive for $500 million, made up of $250 million in cash, $85 million in retention payments for the next two years and a $165 million earnout payable over the next three years.

DoubleDown Casino started off in 2010 looking like another pretender to Texas HoldEm Poker’s crown as top casino/gambling-themed game, but rapidly scaled in 2011 to become one of the top games in the genre on Facebook. According to our AppData traffic tracking service, the game currently enjoys 4.7 million monthly active users and 1.3 million daily active users. The developer plans to release a mobile version in a matter of weeks. Read our review of the Facebook version here.

With Facebook potentially allowing real money gambling in certain parts of the world (like in the United Kingdom, where it’s legal), gambling-themed social games like DoubleDown are well-positioned to access a new audience segment that wants to play with real money. Games that already have established audiences may also be able to convert existing players that use only in-game currency to real money players, given that people are more likely to trust a developer they know rather than new social game developers that build games only for real money gambling.

We’ve contacted DoubleDown Interactive for additional information on the acquisition. A conference call is also being held for the media tomorrow morning. We’ll update this story as necessary.

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10 Responses to “International Game Technology buys Double Down Interactive for $500M”

  1. Raf Keustermans says:

    Huge news. but IGT is not UK based: IGT is a huge US, NYSE-listed based casino software/hardware supplier.
    http://en.wikipedia.org/wiki/International_Game_Technology

  2. AJ Glasser says:

    Cheers.

  3. Inside Social Games · This week’s headlines from across Inside Network says:

    [...] International Game Technology buys Double Down Interactive for $500M [...]

  4. Zynga brings Slingo to Facebook, edges closer to real money gambling partnerships says:

    [...] via gaming machine supplier IGT — which acquired social game developer DoubleDown Interactive earlier this year — and it has a firm grasp on how i-gaming revenue compares to what social games are [...]

  5. Pool Live Tour and Café World this week’s gainer and loser amongst April’s Top 25 Facebook games says:

    [...] almost 900,000 DAU between August and September. The slowdown in growth seemed to occur just after DoubleDown Interactive was acquired in January by International Game Technology; over the past three months, the game’s gained [...]

  6. What social games can learn from real money gaming says:

    [...] company. Caesars Entertainment spent $90 million on Slotomania developer Playtika while IGT spent $500 million on DoubleDown Interactive — and Slotomania was the larger game. Sure, casino games on Facebook see higher engagement [...]

  7. Candy Crush Saga and Empires & Allies this week’s gainer and loser among May’s Top 25 Facebook games says:

    [...] again soon. The game showed high growth during the second half of 2011, but this has slowed since DoubleDown Interactive was acquired by International Game Technology in January. Since DoubleDown Casino doesn’t seem to be [...]

  8. Zynga Bingo and Empires & Allies are this week’s gainer and loser among June’s Top 25 Facebook games says:

    [...] 2011, and peaked at 1.5 million in March. DoubleDown Casino’s growth slowed down after DoubleDown Interactive was acquired by International Game Technology in January; if traffic doesn’t begin to significantly [...]

  9. Robert Melendres opens up about IGT’s current and future plans for DoubleDown Casino says:

    [...] been nine months since International Game Technology purchased Double Down Interactive. We recently sat down to talk to IGT VP of Emerging Business Robert Melendres to discuss the [...]

  10. Pet Rescue Saga is this week’s gainer among the Top 25 Facebook games of December 2012 says:

    [...] in its existence, it’s been hovering around this point since December 2011. Ever since IGT purchased the developer earlier this year, the game’s traffic has been holding steady instead of moving up, though [...]

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