Global gaming giant IGT says it will pay almost US$270 million to settle a class action lawsuit brought against it by customers of its former social gaming subsidiary DoubleDown Interactive Co Ltd (DDI).
The company said this week that it has reached an agreement in principle in the case of Benson v DoubleDown Interactive LLC, which was first launched in 2017 just a few months after IGT disposed of DDI in a hefty US$825 million deal.
The former customers had argued that social casino games offered by the company constituted illegal gambling in the state of Washington because they allowed players to purchase tokens for play.
A similar case involving Aristocrat Leisure Ltd and its social gaming subsidiary Big Fish Games was settled in Washington for US$155 million in March 2021, with Aristocrat contributing US$31 million.
Under IGT’s settlement agreement, which still requires approval by the US Federal District Court for the Western District of Washington, IGT will pay US$269.75 million and DDI another US$145.25 million for a combined total of US$415 million.
IGT, which previously recognized a US$150 million non-operating expense in relation to the case in 2Q22, said it would accrue the remaining $119.75 million expense in Q3.
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