Caesars interactive subsidiary buys fourth social gaming business

17 February 2014

LAS VEGAS -- Caesars Entertainment Corporation’s interactive subsidiary has acquired an Israel-based social gaming business, the company’s fourth deal in the past few years to expand its presence in the growing free-to-play gaming market.

Caesars did not disclose financial terms to acquire Pacific Interactive, which owns the slot machine-style, free-play application House of Fun.

Social gaming has become a growing business for several gaming companies, including Caesars, which owns the World Series of Poker and Playtika, and IGT - International Game Technology, operators of DoubleDown Casino.

The activity is free to play on Internet platforms, including Facebook, but customers often make nominal purchases — usually of less than $1 — to acquire thousands of virtual gaming tokens.

Eilers Research analyst Adam Krejcik, who follows social gaming, told investors the privately held Pacific generated an estimated $25 million to $30 million in revenue in 2013, 75 percent from its Facebook presence and 25 percent from its mobile applications.

Krejcik said Pacific is ranked ninth on his Eilers’ social casino tracker among the companies with social games on Facebook. In a statement, Pacific said House of Fun attracts 700,000 daily users and 2.7 million monthly users.

Caesars, which operates social gaming through Caesars Interactive Entertainment, generated $290 million in revenue from social gaming in 2013. Along with Playtika and the World Series of Poker, Caesars owns games produced by Buffalo Studios.

Eilers said Caesars spent $103 million for Playtika and $45 million for Buffalo Studios.

“We believe Caesars acquired both companies at attractive multiples,” Eilers said. “In fact, its acquisition of Playtika has turned out to be one of the best merger-and-acquisition deals we have seen in the past five years.”

In a statement, Caesars said Pacific would be integrated into Playtika’s social and mobile game portfolio. The company plans to retain Pacific’s more than 100 employees.

Playtika CEO Robert Antokol said the deal adds a new game to the system and will attract new users to the company’s platform.

Krejcik said the deal could pressure IGT, Zynga and Scientific Games to evaluate social gaming acquisition opportunities.

Related Links
Caesars Entertainment Ownership Details
CIE Ownership Details
Ranked Online social slot machine sites


Copyright GamingWire. All rights reserved.
Featured Vendors
Casino Essentials
Castle Merchandising Inc
Casino Essentials
The Ultimate Online Training Platform for the Casino Industry
Castle Merchandising Inc
Brand Name Products for your Player Rewards and Loyalty Programs
Slot Machines Unlimited
TribalHub
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience
TribalHub
22nd Annual TribalNet Conference & Tradeshow Nov 8-11, 2021 Gaylord Texan Resort, Grapevine TX
Betson Imperial Parts & Service
RSA Executive Search
Betson Imperial Parts & Service
You one stop shop for all your gaming and OEM needs!
RSA Executive Search
A Boutique Search firm specializing in the Recruitment of Hospitality and Gaming Entrepreneurs
Casino Network
Casino City Press
Casino Network
20+ years experience selling refurbished slot machines, parts & glass for all major brands
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Rymax Marketing Services, Inc.
Slot-Tickets Worldwide
Rymax Marketing Services, Inc.
Leader in creating award winning player & employee loyalty programs & events proven to increase ROI
Slot-Tickets Worldwide
Slot-Tickets® Worldwide, The Original and Still the Best.
Gaming Tickets, Inc.
Broadband Hospitality
Gaming Tickets, Inc.
35 years in the gaming industry - premium quality slot tickets, lottery tickets on time under budget
Broadband Hospitality
Improve these critical guest-facing amenities: In-room TV, Wi-Fi, Mobile App. Priced right. All here
Casino Schedule Ease
Bar Maid Corporation
Casino Schedule Ease
Get a 90-Day Free Trial of 100% contactless, customizable table game & full casino scheduling
Bar Maid Corporation
Clean and dry thousands of chips, dice and tiles per hour with the high-speed CHIP CHAMPION machine!
Breathe Easy with Smokefree Casinos- a project of the American Nonsmokers’ Rights Foundation
Breathe Easy with Smokefree Casinos- a project of the American Nonsmokers’ Rights Foundation
Breathe easier during COVID-19. We can help you reopen smokefree for everyone’s health.


Your Guide to 15,635 Gaming Industry Suppliers