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Q&A: Double Down CEO Greg Enell on Growth, Games, Money and Facebook

In a 2012 GeekWire interview, Double Down CEO Greg Enell discussed the company’s IGT deal, technology shift, Facebook dependence and plans to reach players through mobile and other channels.
From TheFinanceBase Team4 min to read
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In a December 2012 interview, Double Down Interactive CEO Greg Enell described a fast-growing Seattle social-casino business trying to expand beyond Facebook. His account captures the company’s plans at that moment: move its game front end from Flash to HTML5, add developers, broaden mobile and international distribution, and explore—but not promise—real-money wagering. The figures and forecasts below are historical, not current company or product information.

What was Double Down, and what was changing?

Double Down Interactive developed social-casino games, including DoubleDown Casino, which Enell described as a major Facebook game. The games discussed in the interview did not involve real-money stakes. The company had been acquired by gaming company IGT earlier in 2012, in a deal reported at up to $500 million.

Enell framed growth as a combination of game performance, IGT’s content and reach, and distribution beyond Facebook. The interview is a snapshot of his strategy and expectations in 2012; it does not establish which plans were later completed.

What did the IGT deal and revenue figures mean?

GeekWire reported that the acquisition consideration included $250 million in upfront cash, $85 million in retention payments, and up to $165 million in additional cash over three years if financial targets were met. The “up to” total therefore depended on performance conditions, rather than representing an unconditional payment of $500 million. GeekWire’s January 2012 acquisition report also covered the transaction.

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In the December interview, Enell said IGT’s social-gaming unit had revenue of $35.8 million for the quarter ended September 30, up 20%, driven by Double Down. He said the company was tracking well against the deal’s financial targets and was optimistic about receiving the full potential payment. Those were his statements at the time, not a current financial report.

Enell also credited IGT’s game content. He said the DaVinci Diamonds and Cleopatra slots performed five to six times better on top-line performance than the company’s other slots. That was his comparison in the interview, not an independently audited benchmark.

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How was Double Down expanding its technology and team?

The company was transitioning its game front end away from Flash toward HTML5, while using Java for its backend. Enell summarized the frontend shift this way: “We’re really transitioning the whole front-end to HTML5.” The hiring mix reflected that transition: he said Double Down was seeking Java and JavaScript developers and reducing its hiring of Flash developers.

The staffing numbers are specific to the Seattle office in 2012. About 150 seats were occupied in a new workspace built for 180, and Enell said there were roughly 33 open software-development positions. He described a goal of roughly doubling the development team. These figures should not be read as current headcount, hiring needs, or a description of the company’s present technology stack.

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Why did Facebook remain valuable—and risky?

Enell said Facebook had been a valuable source of players, but in his view the era of abundant free traffic had ended at least a year earlier. He described less virality and organic reach, more marketing spend, and higher acquisition costs. He also saw a tension between Facebook’s games and advertising priorities. These are his assessment of the platform’s 2012 environment, not a statement about Facebook today.

At the same time, Double Down did not want its business to depend on a single platform. Enell put the risk plainly: “You never want to have a single point of failure.” His position was not that Facebook had become unimportant; rather, the company wanted to preserve that relationship while building other routes to players.

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What alternatives to Facebook did Enell describe?

Enell said Double Down had HTML5 mobile products running across Android and iOS and an existing Kindle business. He also described efforts to secure original-equipment-manufacturer placement and carrier distribution. The interview records those as business activity and strategy in 2012, not confirmation that every distribution effort produced a later launch.

International localization was another proposed route to growth. Enell said the company planned to localize for five or six markets around March or April. The interview does not identify the eventual results of those plans. He called broader distribution and markets “key to our growth strategy,” speaking about the company’s intentions at the time.

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Was Double Down planning to offer real-money gambling?

Enell described real-money online wagering as a possible opportunity, not an existing feature of Double Down’s social-casino games. He called the U.S. opportunity interesting but said its development was uncertain and would take time; he also said Europe was open to opportunities and that discussions were underway with IGT.

A separate January 2012 GeekWire interview likewise presented IGT’s regulated wagering capability as something that could make a future offering possible. Neither interview proves that Double Down launched a real-money product or establishes where such wagering is currently legal. The distinction matters: the games Enell discussed in December 2012 were social games with no money at stake.

What the interview says about the company’s 2012 strategy

  • Retain Facebook while diversifying: use the platform’s reach but reduce exposure to a single distribution channel.
  • Scale development around a technology transition: shift the front end from Flash toward HTML5 and recruit Java and JavaScript developers.
  • Pair IGT content with new routes to users: build on game content while pursuing mobile, OEM, carrier, and localized-market distribution.
  • Treat real-money wagering as uncertain: Enell discussed it as a possible future opportunity, distinct from the no-stakes social casino product.

For the original account and its full interview context, see GeekWire’s December 14, 2012 Q&A with Greg Enell.

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