Is Gambling On Facebook Next?

Gambling on Facebook could soon be a reality, after leading online casino software manufacturer International Game Technology agreed to pay up to $500 million for Double Down Interactive - which develops casino-style games for the social network.

'Enormous opportunity'

This creates an enormous opportunity, as Double Down is the dominant casino product on Facebook, and Facebook has talked about allowing real-money wagering in authorized jurisdictions, Greg Enell, CEO of the Seattle-based company, said in an interview with internet magazine Geek Wire following the announcement.

Enell said the company's acquisition by International Game Technology made sense because of IGT's enormous studio capacity for developing slot content. He said he was particularly excited about the idea of them being able to build slots for Double Down's platform, and incorporate brands like Wheel of Fortune, Sex & The City and DaVinci Diamonds, and the more recent DaVinci Diamonds Dual Play.

The Deal

The deal is expected to be completed by the end of March, and involves $250 million in cash, $85 million in retention payments and another $165 million cash payable over the next three years if DoubleDown meets financial targets, according to a press statement released jointly by the two companies this week.

Double Down Casino was only launched in April 2010, but already has 1.4 million active users each day on Facebook, making it the social network's fourth-most popular game last year. Double Down has around 80 employees, who will remain headquartered in Seattle until the deal is closed, but from March the expansion will begin.