IGT and DoubleDown Interactive reach settlement agreement
Global gaming provider and former subsidiary agree to pay $415m to settle class action suit
International Gaming Technology (IGT) and former subsidiary DoubleDown Interactive (DDI) announced on August 29 that they have agreed to settle a class action lawsuit stemming from DoubleDown’s social casino activities in Washington State.
The lawsuit, Benson v DoubleDown Interactive, was originally filed in 2017 and alleged that DoubleDown’s social casino product violated state law in Washington.
As a result, IGT and DoubleDown have agreed to pay a total of $415m into a settlement fund, with IGT contributing $269.7m and DoubleDown the remaining $145.3m.
“The agreement in principle, entered into by certain subsidiaries of IGT and DoubleDown, remains contingent on final court approval by the US Federal District Court for the Western District of Washington,” IGT commented in a statement regarding the settlement.
IGT acquired DoubleDown in 2012 before selling the social casino developer to DoubleU Games, a South Korean social casino firm, for $825m in 2017.
As part of the sale, IGT agreed to provide content offerings on DoubleDown – IGT’s content library includes popular titles such as Wheel of Fortune and Fort Knox – in a long-term deal, thus pulling it into the class action suit.
In its own statement about the settlement, DoubleU Games did not comment on the extent of its existing relationship with IGT.
As a result of the settlement, IGT said it will accrue $119.8m of non-operating expense in the third quarter of 2022 after accruing a $150m expense in Q2.
According to IGT and DoubleDown, the two parties will have “resolved all indemnification and other claims between themselves and their respective subsidiaries and affiliates relating to the Benson Matters” pending final court approval.