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The latest poker news from, featuring top stories from around the gambling industry.
International Game Technology (IGT) is getting ready to sell its casino app DoubleDown just five years after its original purchase. According to sources the company has reached an agreement with South Korea’s DoubleU Games for $825 million. IGT had purchased DoubleDown for $500 million back in 2012, with the app generating a revenue of $280 million in 2016. This however is down 11.7 percent from its 2015 revenue and the app has also struggled with a 14.3 decline in average daily users.
DoubleDown was the company’s first try at online gaming, as IGT is licensed by Nevada for real-money online poker. This venture never came to be as the market within the state is too small. The firm also opted to close its European poker network because of liquidity issues.
At the moment, real-money online poker is only legal in two other states, New Jersey and Delaware, and while real-money internet gambling only constitutes around $200 million in the U.S. the social casino games market is estimated to be around $4.5 billion.
The company stated the money from the sale would be directed at debt payment as IGT is reported to owe about $8 billion.
“Since acquiring DoubleDown in 2012, IGT has grown it into one of the largest and most successful brands in the North American social casino market,” said Marco Sala, CEO of IGT. “After several years of strong, organic growth and increasingly attractive valuation levels, the time is right for us to maximize the value of this asset for our shareholders.”
IGT also added they will look to partner with DoubleU Games in order to grow in areas such as game development, distribution and service agreements.