International Game Technology
) DoubleDown Casino has added Bingo to its portfolio of
casino-style games. Simultaneously, a free-to-play version of the
game was launched on
DoubleDown Casino is the most popular casino-style social gaming
application on Facebook, with more than 5.2 million monthly active
users, according to AppData. This addition is expected to boost the
user base for the game going forward.
Facebook fans can now get their hands on the new version of
Bingo where players are offered up to 12 carded plays per round
contrary to other Bingo sites that offer up to four carded game
plays. In addition, players will have the option of customizing
their dauber and play in themed rooms. The game offers as much as
three themed rooms namely Art Deco, Fashionista and High Orbit.
Moreover, the game offers speed control for different skill sets
and can be played in either automatic or manual modes.
Although the game is free to play on Facebook, the company is
expected to generate revenue from advertisements and through the
in-game sale of virtual goods in exchange for virtual currency,
which is known as micro-transactions.
Moreover, IGT's DoubleDown Casino is leveraging its online
casino-style games to different land-based casinos. Recently, it
struck a deal with Hard Rock Hotel and Casino in Las Vegas. A
similar deal with Jacobs Entertainment was signed last month. The
popularity of the DoubleDown platform is encouraging, enabling IGT
to generate incremental revenue in the long run.
We believe that IGT stands to benefit significantly from the
massive growth potential of social and mobile games over the long
term. According to market research firm BI Intelligence, the U.S.
social gaming market (including mobile games) is expected to more
than double from approximately $2.0 billion in 2011 to
approximately $5.5 billion by 2015.
IGT is comparatively a new player in the online social gaming
market. We believe that DoubleDown's strong product portfolio and
customer base will help it to garner new partnerships that would
provide a competitive edge over other established players.
New contract wins along with an improving domestic gaming
environment, international expansion opportunities, an impressive
product portfolio, reduced dependence on the domestic machine
replacement cycle and strong growth from the interactive business
will drive growth going forward.
Moreover, the company is keeping pace with the technology
demands of the day and has made headway with its IGT Cloud. We
expect the IGT Cloud services to gain traction in the casino gaming
industry, as it is expected to be well received by new casino
properties, thereby improving the company's top line.
However, we believe that the increasing investment in product
development will drive operating costs, which will remain an
overhang on the stock in the near term. Moreover, fewer new
openings and increased competition from
Bally Technologies Inc.
WMS Industries Inc.
) will keep the stock range bound in the near term.
We have a Neutral recommendation on the stock over the long term
(6-12 months). Currently, IGT carries a Zacks #3 Rank, which
implies a Hold rating in the short term.
BALLY TECH INC (BYI): Free Stock Analysis
FACEBOOK INC-A (FB): Free Stock Analysis Report
INTL GAME TECH (IGT): Free Stock Analysis
WMS INDS INC (WMS): Free Stock Analysis Report
To read this article on Zacks.com click here.