Social casinos are gaining popularity in more and more countries, especially in Asia, where gambling is largely prohibited. Participation in such a game usually requires minimal effort—players only need to visit the site or download the application to start playing with free tokens, writes iGB. These games are termed “social” because, in the past, such services were most actively promoted on social networks.
“Six years ago, I researched social casino games and was surprised by the numbers I found,” says Sean McCamley, a top manager in the gambling industry. In particular, he was drawn to the actions of Caesars Entertainment, which acquired the social casino platform Playtika for $92 million in 2011 and sold it for $4.4 billion in almost the same condition in 2016. Inspired by this case, McCamley created his own social gaming platform, GameWorkz. He notes that these services should offer not only traditional slots and roulette but also puzzles, role-playing games, and other interactive experiences. He also advises incorporating a potential social component, such as offering players the opportunity to organize business meetings on the platform or enjoy coffee through virtual communication. In Asia, where such platforms are in high demand, the social aspect is particularly important. For instance, in Japan and South Korea, high business activity is combined with a traditional mentality.
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According to Joe Pisano, CEO of Jade Entertainment & Technologies, the social gaming market in Asia was estimated to be worth $6.5 billion in 2022, and the market is continuing to grow. One of the reasons for this growth is the development of mobile technologies and integration processes within social networks. Pisano also suggests that localization could further enhance growth. While many Asian countries are accustomed to English-language services, the ability to pay for services in their local currency would be beneficial. Like many other applications, social casino services can offer a free set of games and limited hours of use, or a paid option for unlimited access.
More and more global gambling giants are entering the social casino space. Aristocrat’s social division, Pixel United, generated $1.76 billion in revenue last year, accounting for 42% of the company’s total revenue. In the first half of 2024, its revenue reached $877 million, representing 41% of the company’s revenue. Experts now predict that the total revenue of the “social market” will reach $29 billion by 2026, with an average annual growth rate of 16% from 2020 to 2026. However, reaching the top is no longer as easy; there is intense competition, not only among social casinos but also among entertainment applications in general. Currently, almost half of the global market is dominated by three companies: Playtika, Pixel United, and SciPlay. Furthermore, social networks have ceased to be a completely problem-free promotion tool.
Interestingly, purchasing additional time on these gambling services is becoming increasingly rare. Only a minority of users are willing to pay extra for enticing bonuses; according to Aristocrat and Light & Wonder, this figure is only 10%. Therefore, advertising has become a primary source of income: announcements and integrations into the gaming space are becoming more aggressive each year. Additionally, social casinos often serve as platforms for promoting traditional casinos. For instance, PlayStudios, founded with the support of MGM, has promoted the gambling giant by offering discounts on food and rooms in its hotels. The company now collaborates with as many as 100 partners from the entertainment and travel industries across six continents, including gambling operators. If you found this publication helpful and interesting, we recommend subscribing to our breaking gambling news to receive notifications about the latest updates and stay informed about current events.
