Bally Technologies have just announced the $100 million purchase of Dragonplay an Israeli-based social gaming business.
Social Gaming is expected to produce some $2.6 billion in revenue throughout 2014, and Bally Technologies have just entered the market with their purchase of Dragonplay, one of the top 10 grossing operators in this rapidly expanding side to the business.
Dragonplay Purchase
Based in Israel, Dragonplay has some 700,000 daily, and 3 million monthly users. The company generated some $10 in cashflow in the year to March 31st. Only operating since 2010, they offer casino games and Live Poker on social gaming platforms and while they may not be the biggest operator, overshadowed by companies like Doubledown, the acquisition by Bally is predicted to significantly increase turnover in the next year.
It is worth noting that Doubledown was bought for half a billion Dollars by International Gaming Technologies in 2012.
Bally is paying $51 million upfront for the business, with the remaining $49 million being paid over the next year and a half, with the deal due to be completed during July. Shares in Bally rose slightly on the news, and comes as something of a surprise given that Ballys' management team had previously steered clear of the social gaming market. It appears, however, that the deal has been on the cards for several months, as Bally had been looking at other social gaming operators for some time.
Having recently bought SHFL Entertainment, Bally now has an extensive range of slots table and card games to add to Dragonplays' offerings.
About Social Gaming
Played across social platforms like Facebook, or on stand-alone sites, social gaming is particularly popular on mobile devices and tablets. Site operators earn commission when users by chips, although margins can be thin.
By purchasing Dragonplay, Bally has entered the only major market it was not already present in.
Blackjack
Slots
Roulette
Baccarat
Craps
Poker
