The agency will initially seek to increase awareness of its online casino product in the UK with an above-the-line campaign over the next few months. It has also been tasked with launching 32Red into new key markets, starting with Italy.
The account moves from Cravens without a formal pitch. According to Nielsen, 32Red spent £3m on advertising in the UK over the past 12 months.
David Gamble, creative director of Hometown, said: "This is a great opportunity for us to work with a hugely ambitious client to grow their reputation in and beyond the UK. Their product is second to none and we aim to build them a brand to match it."
Mark Quayle, head of marketing at 32Red, said this was an "important time" for both Hometown and 32Red.
"Hometown has the energy and excitement to match ours, and I’m excited by what the future holds," he added.
Gamble and Simon Labbett, the co-founders and creative directors of the Rainey Kelly Campbell Roalfe/Y&R digital shop Saint, launched Hometown in April last year and picked up a brief from ITV in November.