If you are a devoted casino player, then you should be well aware of the fact that one of the fastest growing segments in the industry is social casino gaming. Ever since the advent of the internet, the casino sector has undergone an immeasurable change from the ability to play table games and the best slots at home to the latest developments like live dealer streaming and mobile gaming.
Social casino gaming came to the fore in 2011 and has piggybacked greatly on the success of Facebook. These days everyone has an account on Facebook and the surging popularity of social casino games reflects a tiny fragment on how the overall gaming landscape has witnessed an enormous transformation.
Social casino games headed towards consolidation
Even though social casino games do not have anything to do with real money, social casino has not only become a rage among US gamers, in particular, but has dominated the space almost entirely. Adam Krejcik from Eilers Research states that industry currently generates a revenue of $3.4 billion and will touch the $4.4 billion mark by next year.
A report by Newzoo from December found that 46% of Western European and US mobile players spent money on social casino games in the past year, which is a growth of 36% compared to the previous two years. It was also seen that people in the age group of 21 to 35 years indulged more in these games, with men accounting for 59% of the market. The research also found that on an average, players spend 2 to 5 hours every week playing their favorite title as shown below:
Source: gamesindustry.biz
Why is the gambling industry so passionate about a product that resembles gambling but doesn’t monetize?
This is because social casinos make a ton of money and provides extra opportunities for customer retention and acquisition. Many gambling firms that offer social casino games do a relatively better job monetizing it compared to their non-gambling competitors.
What to look for in the next few years
Krejick states that live-dealer social games will turn out to be a hit; iPads will be replaced by Apple TV and big-screen smartphones; advertising rates for cost per install will moderate; manufacturers of top slots games will roll out social-specific games; and Wall Street will acknowledge the value of social casinos.
Some recent illustrations on social casino consolidation
Consolidation in the lucrative and competitive social casino market has become rampant. According to Venture Beat, social casino giant Plumbee has been acquired by Sony’s GSN Games for an undisclosed price. This important acquisition will imminently strengthen GSN Game’s earnest growth plans by leveraging on the social casino expertise and the top talent of Plumbee stated Steve Brunell, COO of GSN.
Buffalo-based Delaware North, a global hospitality and foodservice firm, announced on the 10th of March, 2016 that it had acquired Ruby Seven Studios-a top ranking social gaming company. With this development, Delaware North will be launching its own online social gaming and mobile platform. This will enhance customer engagement and give a boost to its land-based establishment.
RealNetworks, a publicly-traded firm in Seattle that operates RealPlayer, made a dig into social casino games by purchasing Slingo for $15.6 million in the year 2013. At that time, the company was also on the verge of launching a new form of casino game involving a sweepstake of $100,000 referred to as Gamehouse Casino Plus. Around the same time RockYou also acquired MavenHut’s Social Casino Solitaire Games. There have been other major acquisitions, not to mention Churchill Down acquiring Big Fish Casinos at a record $885 MM sometime back.
A 2014 report by Distimo indicates that social casino games head the limelight when it comes to mobile gaming. These games are heavily being downloaded on Apple App Store and Google Play. Here’s how it looks like:
Source: Distimo
Final thoughts
The most important conclusion that these facts lead us to is that social casino gaming is ruling the roost and will take on the social industry by storm in the next few years. The game is sure to evolve rapidly, and it’s time for gaming managers, marketers and casino operators to assign someone to keep a track on the rapid developments in the industry. Finally, the huge popularity of social casinos coupled with the latest M&As certainly proved that the industry is headed towards consolidation.
We’d love to hear your thoughts and predictions on this amazing form of gambling.
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