IGT and DoubleDown Interactive have finally agreed a deal ‘in principle’ to settle the multi-million dollar ‘Benson v. DoubleDown’ lawsuit.
The global lottery and gaming firm IGT has been entrenched in legal proceedings since 2018 after allegations of illegal gambling in Washington.
This was drawn from the offer of social casino games, including roulette and slots that can be played with virtual chips and with no cash prizes, which was alleged to have breached regulations in the state.
An agreement has now been entered into by ‘certain subsidiaries’ of IGT and Double Down, but remains contingent on final court approval by the US Federal District Court for the Western District of Washington.
Should the settlement be confirmed, a total of $415m will be paid into a settlement fund of which IGT subsidiaries will contribute $269.7m.
The remaining $145.3m will be paid by DoubleDown Interactive.
Furthermore, it has been stated that all members of the nationwide settlement class who do not exclude themselves will release all claims relating to the subject matter of the lawsuit.
“Subject to final court approval of the settlement of the Benson v. DoubleDown Interactive LLC, et. al. lawsuit, IGT and DoubleDown have also resolved all indemnification and other claims between themselves and their respective subsidiaries and affiliates relating to the Benson Matters,” IGT’s statement added.
As a result, IGT will accrue a $119.8m non-operating expense in the third quarter ‘related to the incremental loss associated with the Benson Matters and related claims between IGT and DoubleDown and their respective subsidiaries and affiliates’, adding to the $150m that was accrued in the second quarter.
IGT reported its Q2 results earlier this month, revealing its global lottery division has suffered year-on-year dips in turnover.