Crown Resorts enters Social Gambling space with $27.5 million DGN Games acquisition

packer
James Packer

Australian gambling and leisure operator Crown Resorts has announced that it has acquired a 60% stake in Austin (Texas) based social gambling/games developer DGN Games LLC for a sum of US $27.5 million (£17.5 million).

Crown Resorts becomes the latest land based operator to invest in the Social gambling sector, following last year’s $885 million (£560 million) acquisition of Big Fish Games by US race track operator Churchill Downs.

The gambling operator is set to back the top 15 social gambling developer with $5 million cash injection to aid its future growth strategy.

‘It’s early days for us, but we think the social gaming space is a relatively high growth market,’ Crown chief financial officer Ken Barton commented.

The acquisition of DGN Games was announced during Crown Resorts 2014/2015 financial corporate update which saw the Melbourne based operator report a profit decline of 41% to AUS $385 million.

Crown Resort headlines have been dominated by the announcement that billionaire James Packer will step down as Executive Chairman. Packer will be replaced by financial advisor and former Deutsche Bank Director Robert Rankin. Australian news sources have reported that Crown will likely undertake its largest executive team shake up as it tries to recover from its current decline.

The DGN Games acquisition sees the operator enter the social gambling sector and further diversify its current business/product inventory. DGN Games feature social gambling product is Old Vegas Slots which is available on the  Apple iOS store. 

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