Penn National Announces Two Acquisitions to Grow Gaming Unit

The gambling industry has been growing in leaps and bounds in the US for the past few years. As one of the most prominent names in the industry today, Penn National Gaming has invested millions into ensuring that its customers will always be privy to the latest technology and exclusive experiences. To this end, Penn National Gaming recently announced that it has formed a specialized content development division called Penn Game Studios. This division will be responsible for the development of new online casino-style games while the company has secured two acquisitions to this department in its efforts.

About the Acquisitions

Penn National Gaming, a Pennsylvania-based gaming venture, announced that it will be purchasing both LuckyPoint Inc. and HitPoint Studios, Inc. as a means to bolster its gaming services and catalogue. HitPoint Studios, Inc. was founded in 2008 in Massachusetts. The company has since taken on projects for renowned companies and brands and has become a leader in platform development and live multiplayer mobile games. HitPoint eventually spun out another company to focus solely on real-money gaming development, LuckyPoint, in 2019. Paul Hake, the CEO of HitPoint, stated that the team is thrilled to be joining Penn National Gaming and bring their skills and expertise to the interactive division.

While the financial details of the transaction were not disclosed, Penn National executives have shared that the transaction is expected to be completed in the upcoming term. Key thoughts from Penn National’s CEO, Jay Snowden, indicate that the acquisition is expected to complement the company’s Barstool Sportsbook brand. According to Snowden’s statement, with HitPoint onboard, Penn National will have the ability and expertise to develop exclusive content for its audiences and further leverage the existing Barstool sportsbook brand. He went on to say that Penn National is excited to be launching its new division, which brings the company a step closer to becoming an omnichannel provider of interactive and retail gaming, sports wagering and entertainment.

iGaming Forecast

The Pennsylvania-based operator’s announcement of its newest division, Penn Gaming Studios (PGS), and latest acquisition could not have come at a better time. Industry analysts have crunched the numbers and have forecasted that the iGaming industry will see exponential growth over the next few years. While sports betting is taking centre stage at the moment, the data indicates that the online casino gambling industry will grow from this year’s $1,5 billion to a staggering $14 billion by 2033. While Penn is one of many operators who have recently taken the leap into gaming development, MGM Resorts International has been dabbling in gaming creation for quite some time. Just last month, MGM’s CO, Bill Hornbuckle, referred to iGaming as the secret to success in the gambling business and noted that, with time, iGaming will be responsible for around 66% of industry revenue.

The future growth of this industry will rely heavily on the expected legislative catalysts for iGaming. Compared to the 27 states that have legalized sports betting in the US, there are currently only five jurisdictions in the country that have regulated and legalized online casino gambling. The passage of gaming expansion measures in several states will allow the industry to boom and will likely become even more lucrative than sports betting. This is a result of superior margins and the player devotion to online casino-style games.

Why HitPoint Studios, Inc.?

While HitPoint Studios, Inc. might not be a household name, Penn National Gaming’s decision to acquire this company could be one of the shrewdest business decisions to make. Penn National Gaming has shared its goal of creating unique experiences that drive engagement and HitPoint’s talented team will be able to meet these needs by providing exclusive, seamless and well-design online casino gaming experiences. HitPoint has several noteworthy projects under its belt and has created more than 50 online games for some of the most well-known brands and publishers in the industry today. HitPoint’s list of past clients includes Disney, NBCUniversal, Google, EA Games, Microsoft and even Ellen DeGeneres.

The real-money spin-off of HitPoint, LuckyPoint, provides web-based table and slot games across different mobile platforms and desktop devices. Once the acquisition is complete, both LuckyPoint and HitPoint’s team of 30 employees will be folded into Penn Interactive Ventures, the company’s dedicated interactive division.