- Slot machine giant makes 20% equity investment in online slot studio
- Investment made via Light & Wonder’s “Spark” program
Light & Wonder (NASDAQ: LNW) announced today it took a 20% stake in online slot studio Bang Bang Games. The investment was made via the former’s Spark unit.
Formerly Playzido, London-based Spark is “the name representing studios developing games directly on the Light & Wonder,” according to the entity’s LinkedIn profile. By some estimates, the deal values privately held Bang Bang at more than $635,000.
They’re (Bang Bang) a talented team with a proven track record and an exciting and engaging vision. This investment is a great example of how we support studios through the Light & Wonder Spark program — helping them grow, scale, and succeed on a global stage,” said Stuart Banks, Light & Wonder managing director, in a statement.
Bang Bang develops slot games for use by iGaming operators.
Bang Bang Invesment Could Be Smart Move by Light & Wonder
As noted above, Bang Bang’s estimated valuation isn’t yet large so Light & Wonder isn’t doling out a significant sum of capital to make the investment.
That could signal that Light & Wonder is not only getting a good deal, but that the company was smart to take a sizable interest in Bang Bang at a low multiple. There’s case in favor of both points because iGaming is rapidly growing and the industry has proven at adept at attracting devotees of slots from land-based casinos.
As pointed out by Light & Wonder in the press release, Bang Bang has already made significant inroads in Europe and the UK. More recently, the company has cobbled together some momentum in North America, which is widely viewed as the most attractive iGaming market in the world owing to its vast long-term potential.
“With Light & Wonder’s support, we’re in a great position to build on that momentum, grow our reach, and deliver even more bold, creative content to players globally,” said Bang Bang CEO Frank McPolin in the statement.
In the US, just seven states — Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia — allow internet casinos. While it’s unlikely that the group will increase in size this years, it’s widely expected to be larger in the years ahead, likely boosting demand for fresh slot content along the way.
Light & Wonder Extends Acquisitive Ways
Light & Wonder has shown a knack for prescient acquisitions and news of the investment in Bang Bang arrived about two months after company said it’s paying $850 million in cash for the charitable gaming assets of Grover Gaming, Inc. and G2 Gaming, Inc.
That purchase price could rise to $1.05 billion if certain financial conditions are met. The deal is slated to close in the current quarter.
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