Crown Resorts Enters Social Casino Market With DGN Games Acquisition
Social casino games are seen by real money gambling operators as the ideal way to attract new potential gamblers with popular and seemingly harmless free-to-play games found on social networks like Facebook.
For a long time gambling companies have come under fire for what critics claim are nothing less than a Trojan horse whose sole purpose is to create a bigger database of real money gamblers.
The fact that the likes of Big Fish Games was purchased by the US Track operator Churchill Downs last year for a whopping $885 million just proves how keen land based casinos are to get their footprint in the social casino arena.
The latest big name to make a move in the social casino market is that of the Australian gambling and leisure operator Crown Resorts which have announced they have acquired a 60% stake in the Austin bases social gaming developer DGN Games for $27.5 million.
Chief Financial Officer for Crown, Ken Barton was delighted with the acquisition and was optimistic as the potential. He said,” It’s early days for us, but we think the social gaming space is a relatively high growth market.”
The timing of the acquisition is interesting as it comes after the financial corporate update which saw the operator record a 41% decline of profits to AU $385 million in for the last 12 month period. This also comes after the announcement that James Packer will step down as the Executive Chairman to be replaced by former Deutsche Bank Director Robert Rankin. Crown is expected to undergo major management changes in an attempt to recover front their current decline. DGN Games and its Old Vegas Slots offering is expected to help Crown diversify their existing offering and help them explore the lucrative social casino marker.