Friday, December 21, 2012

Gambling Industry Bets Virtual Money Turns Real

Wall Street Journal
Americans can't yet play slot machines on their smartphones. But that isn't stopping the gambling industry from getting them in the habit. Gambling companies have been acquiring and cutting deals with firms that develop simulated casino games for devices like the iPhone, a bet that they will be able to build a user base that could pay off if online betting is legalized in the U.S. Slot machine maker International Game Technology bought casino app maker Double Down Interactive in January for $250 million in cash, plus another $250 million in potential payments. Last year, casino operator Caesars Entertainment Corp. bought a company called Playtika, maker of another popular smartphone gambling game called Slotomania. The real jackpot could come as various states work through plans to legalize online bets in light of new Justice Department guidance that could allow it in most cases. On Thursday, for instance, the New Jersey legislature approved a bill to allow online gambling, though it could still be vetoed by the governor.

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