Crown Resorts targets social gaming with DGN Games deal
Crown Resorts looks set to become the latest land-based operator to expand into the social gaming sector after the Australian entertainment group revealed it has struck a deal to acquire a 60% stake in DGN Games.
Under the agreement, Crown will pay $27.5 million (€24.8 million) to secure the majority stake in the Texas-based social gambling and games development firm.
As part of the deal, Crown has contributed $5 million to DGN in order to support further growth.
Confirmation of the deal comes after Crown last week posted poor results for the 12 months period through to June 30, 2015.
As reported by iGaming Business, actual net profit after tax fell 37.4% on a year-on-year basis to Aus$439.6 million ($322.5 million/€291.1 million), while normalised net profit after tax also dropped 18.9% to Aus$518.8 million.
Meanwhile, although both actual and normalised earnings before interest, tax, depreciation and significant items were down, Crown did note an increase in revenue in its actual and normalised results.
Actual revenue was up 12.6% year-on-year to Aus$3.5 billion, with normalised revenue also hiking 16% to Aus$3.4 billion.
Crown also announced last week that James Packer is to step down as chairman, with Robert Rankin set to take up the role.
Related article: Packer steps down as Crown chairman