IGT has reached an agreement in principle to settle the Benson v DoubleDown Interactive lawsuit and has agreed to contribute $269.75m towards a settlement fund.
The gambling and lottery group agreed to contribute a $269.75m payment as part of a complete $415m settlement to bring an end to legal proceedings that have been active since 2018.
DoubleDown Interactive was once a subsidiary of IGT but was sold in 2017 to DoubleU for $825m as IGT reorganized and made a commitment to significantly lower its long-term corporate debt.
The lawsuit was brought forward by Benson Matters in 2018 against IGT and DoubleDown over alleged illegal gambling services in Washington, against local laws.
However, a long-term lawsuit has been brought to a close after IGT’s payment, with DoubleDown Interactive also contributing $145.25m.
The agreement remains in principle and subject to final court approval by the US Federal District Court for the Western District of Washington.
IGT noted in its Q2 financial report that it had accrued a $150m cash expense to cover the settlement, with a further $119m to be accrued in its Q3 report. These were listed as ‘non-operating expenses’.
IGT 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”.