Back when Ultimate Poker became the first legal, regulated online poker room to launch in the United States, it developed its own software from scratch. It was ok, it was playable, but it was initially quite limited, as the company opted to get up and running as quickly as possible, before the software was robust. Ultimate Poker did not last long – the software was likely way down the list of reasons why – but since then, we have seen online poker rooms, casinos, and sportsbooks simply partner with a provider that already has a full-fledged software suite ready to go. Penn National Gaming announced on Monday that it is going a sort of hybrid route, creating Penn Game Studios with the acquisition of two companies: HitPoint Studios and LuckyPoint.
Thus, Penn National is going to build some of its games and platforms in-house, but it is doing so through the purchase of development studios.
HitPoint’s specialty is casual mobile games, with such titles as Venture Valley, Dragons Adventure World Explorer, Star Wars The Last Jedi Porg Invasion, and Game of Games, based on the hit game show hosted by Ellen DeGeneres.
LuckyPoint focuses on real-money gambling, spun off from HitPoint in 2019. It’s platform contains game engines for traditional casino games, as well as skill-based games.
“We will now have the ability to create exclusive content for our audiences, further leverage the Barstool Sports brand and our database of 20 million mychoice customers, and create cross-marketing opportunities with our brick and mortar facilities,” said Jay Snowden, president & CEO of Penn National.
HitPoint and LuckyPoint’s 30 employees will begin working for Penn Interactive, a subsidiary of Penn National, once the acquisition is complete.
So why Penn Game Studios and why now? Two main reasons, probably. First, the company is likely trying to reach the younger, video game-playing demographic. It doesn’t have to do so much with HitPoint’s casual games, but rather LuckyPoint’s skill-based games. Yes, skill-based gambling is still gambling, but for those who are into video games, it certainly feels better, it feels like the player has more control over the outcome (and depending on the game, they do).
Second, Penn National Gaming is probably trying to up its portfolio to compete with DraftKings, which has integrated casino gaming into its sportsbook and daily fantasy sports app. There are obviously other competitors like BetMGM, but DraftKings is the one that has really been pushing hard to dominate the US betting industry. DraftKings, in particular, is likely strong in the younger bettors demographic, as it developed a loyal player base from its days as a daily fantasy-only site.
Penn National is best known for its brick-and-mortar gambling venues, with 41 locations in 19 states, including the casino brands Ameristar and Hollywood. Where it really caught the attention of the wider gambling public was when it acquired a 36% stake in Barstool Sports; it has since opened Barstool Sportsbooks in three states and has a Barstool online casino in Michigan.
