Bwin.Party Says Adieu to Social GamingPublished January 7, 2015 by Sol FH
Big news from the social gaming world to kick-off 2015, as Bwin.Party set to sell all social gaming.
A little under three years was all it took for Bwin.Party to come to the realization that they will need to get rid of all their social media gaming. It seemed like an excellent investment at the time, as Bwin.Party put $50 million into the emerging industry. They launched WIN, which has struggled make significant advances in the market since the original boom in 2011. Since then, only a few companies have had success with social gaming and Bwin.Party is unfortunately not one of them.
Bloomberg received and published the company's announcement, “We are in active discussions regarding the sale of Win, the group’s social gaming business and expect to make a further announcement shortly.” Already looking to the future, Bwin.Party says that they are in major talks with several different parties regarding the possibility of creating additional value for the company, and hopefully their next announcement will be better than this one.
Their business plan was essentially to bait gamblers to their real-money casino games via their fun social media titles; neither had any luck though. In 2014, Bwin.Party posted a loss of $8.5 million and opted out of the currently unstable market for entrepreneurial operators.
Enough is Enough
One of the biggest reasons for their failure in social gaming was due to their misjudgment of the US online gambling market, which was supposed to grow to expand a lot wider and faster. Now it seems that the secondary growth in the US will only take place in 2016, which was more than enough reason for Bwin.Party to jump ship.
Social gaming may very well be the wave of the future, but it also may have been a short-lived trend that has come to an abrupt stop leaving companies like Bwin.Party out in the cold.