IAC Chairman Barry Diller. Photo credit: World Travel & Tourism Council, under Creative Commons license

IAC, the technology conglomerate, has announced that it’s built up a 12% stake in publicly-traded casino giant MGM Resorts International, coughing up an aggregate of $1 billion to do so. The investment comes on the heels of the full separation of IAC from its affiliated company Match Group that saw it emerge with $3.9 billion in cash and no debt on its balance sheet. IAC, a technology conglomerate, taking a big stake in a casino giant seems odd but the company defends the investment as taking advantage of an opportunity to “own a meaningful piece of a preeminent brand in a large category with great potential to move online.”

MGM is already a leader in in-person entertainment but it seems IAC is betting on the company possibly venturing into and making strides in the digital world. “We think MGM could be one of the largest direct marketers on the internet as online gaming grows, and online direct marketing is an area we know well,” IAC said in a press statement.

As well as its investment in MGM, IAC also announced its financial results for the second quarter of this year. The company clinched $726 million in revenues for the quarter, up 5% year-over-year, and net losses of $96 million, compared to a $14 million profit in the same quarter last year.