DoubleU Games, a local social casino game developer, will pay $145.25 million to settle a consumer protection lawsuit put forward against its subsidiary in the United States, the company said Tuesday.
DoubleU Games and International Game Technology (IGT) will pay $415 million to settle the Benson v. DoubleDown Interactive LLC case. IGT will pay the remaining $269.75 million.
The two companies were sued by users of online casino games developed by DoubleDown, which was initially an IGT subsidiary until it was sold off to DoubleU Games in 2017. Users claimed that the game violated the U.S. consumer protection statute by providing an illegal gambling service.
The agreement will be finalized with approval from the U.S. Federal District Court for the Western District of Washington, according to DoubleU Games.
Founded in 2012, DoubleU Games develops online casino games that can be played on Facebook. The company posted a 23.4 billion won net loss in the second quarter of 2022, as it put aside $75 million for the lawsuit. The rest of the amount will be reflected in its earnings reports in the coming days, the company said.
BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]
