Light & Wonder (NASDAQ: LNW) revealed today that it acquired a 20% interest in the online slot studio Bang Bang Games. The investment occurred through the previous Spark division. 

Previously known as Playzido, London-based Spark is described as “the name representing studios that create games directly on the Light & Wonder,” according to the company's LinkedIn profile. According to certain estimates, the agreement values the privately owned Bang Bang at over $635,000.

"They’re (Bang Bang) a talented team with a proven track record and an exciting and engaging vision. This investment is a great example of how we support studios through the Light & Wonder Spark program — helping them grow, scale, and succeed on a global stage,” said Stuart Banks, Light & Wonder managing director, in a statement.

Bang Bang creates slot games for iGaming operators to use. 

Bang Bang Investment Might Be a Wise Choice by Light & Wonder 

As mentioned earlier, Bang Bang’s projected worth isn’t substantial yet, so Light & Wonder isn’t allocating a considerable amount of funds for the investment. 

This might indicate that Light & Wonder is securing a favorable deal and that the company made a wise decision by acquiring a significant stake in Bang Bang at a low multiple. There are arguments supporting both sides as iGaming is expanding quickly, and the industry has demonstrated its ability to attract fans of slot machines from physical casinos. 

According to the press release from Light & Wonder, Bang Bang has already achieved considerable progress in Europe and the UK. Recently, the company has built some momentum in North America, which is largely considered the most appealing iGaming market globally due to its immense long-term potential. 

“With Light & Wonder’s support, we’re in a great position to build on that momentum, grow our reach, and deliver even more bold, creative content to players globally,” said Bang Bang CEO Frank McPolin in the statement.

In the United States, only seven states — Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia — permit online casinos. Although it’s improbable that the group will grow this year, it is generally anticipated to expand in the coming years, likely increasing the demand for new slot content during that time. 

Light & Wonder Expands Its Acquisition Strategy 

Light & Wonder has demonstrated a talent for timely acquisitions, and the announcement of its investment in Bang Bang came roughly two months after the company announced it would pay $850 million in cash for the charitable gaming assets of Grover Gaming, Inc. and G2 Gaming, Inc. 

The purchase price may increase to $1.05 billion if specific financial criteria are fulfilled. The transaction is expected to finalize in this quarter.