Bwin.party Wants Out Of Social Casino Business
The Gibraltar based bwin.party made their intentions clear in 2012 when they invested $50 million in the Tel Aviv based social gaming company Win. At the time bwin.party like many others thought the social casino market would continue to grow and offer revenue opportunities.
While the social casino market has been one of the best performing sectors for gaming companies like Caesars with their social casino subsidiary Playtika and IGT with Double Down, the market has largely been captured by these big players. The smaller companies are not able to compete with the likes of Caesars and IGT. A report in Bloomberg quoted bwin.party officials as saying,” We are in active discussions regarding the sale of Win, the group’s social gaming business and expect to make a further announcement shortly. The group is continuing its discussions with several parties regarding a variety of potential business combinations with a view to creating additional value for Bwin.Party.”
As anyone following the developments of online gaming in the last few years knows, real money gaming companies use social casino subsidiaries to build a loyal audience which they can switch over to real money when it is legally possible to do so.
However the pace at which online gambling is being legalized in markets like the U.S. has not been quick enough and has resulted in smaller companies like bwin.party struggling to get a viable market share in this fiercely competitive sector. Bwin.party reported lost in the region of $8.5 million from their social casino business in 2014.