Virtual gambling without real betting is taking over the world, offering users a unique combination of social interaction and entertainment. Social casinos, while not requiring players to risk money, still provide the thrill of traditional gambling. They have become not just a trend, but an entire phenomenon that is changing the idea of what it means to gamble at a casino. In this article, we take a look at how social casinos are transforming the gambling industry, why they are so popular, and what the future holds.
Definition of social gaming
Social gaming originated on social media platforms like Facebook, where users can easily dive into their favorite casino games right from their news feeds. The sense of excitement of winning jackpots and big wins is maintained, but without having to spend real money. This appeals to those who want to hone their gambling skills or are simply looking for safe entertainment.
Over time, games such as Farmville, Mafia Wars, and Words with Friends have spread rapidly across these platforms, reflecting the community-oriented nature of social networks. At their core, social games are based on interaction between players, making them an integral part of the online experience.
Social gaming offers users free versions of gambling games such as blackjack, slots, and poker without the risk of real money losses. These casinos use two types of currency: one for regular play and one that mimics real monetary value but cannot be cashed out. This approach combines elements of gameplay with aspects of gambling culture while remaining within the legal framework. Games operating under the freemium model offer players free bonuses – chips or spins – for daily use. When the bonuses run out, players can wait for the next day or buy additional credits to continue playing.
Today, social casino games are popular both as standalone apps and as social media integrations. Games like Pokerist, Slotomania, and Zynga’s line of casino games are attracting huge audiences. A major player in this market is Playtika, which has a significant market share and offers the most popular social casino games such as Slotomania, BingoBlitz, and World Series of Poker (WSOP).
The main types and features of social games
Social casino games are varied and cover many of the same types as real money games.
The main types of social games and their features:
Slots
The most recognizable among social games, where players spin the reels to match symbols on pay lines. Unlike traditional slots, the wins here are paid out in virtual coins.
Poker
Players can compete against each other or enter tournaments using virtual chips instead of real money bets. The gameplay mimics real poker.
Blackjack
A popular card game where players try to beat the dealer without exceeding 21 points. The game is played for points or virtual currency.
Bingo
Players mark numbers on a card drawn by the host in an attempt to complete a certain combination faster than others. It is a game based on community interaction.
Roulette
Players place bets on where the ball will stop on the roulette wheel. This uses virtual chips for betting.
Baccarat
A card game in which players strive to put together a combination with the maximum number of points, up to a maximum of nine.
All of these games are characterized by the fact that they are designed for entertainment, often featuring vibrant graphics, interactive features, and social elements such as leaderboards and the ability to share achievements with friends.
Leading companies in this field are looking to diversify their offerings by integrating elements of other game genres to attract more users and increase monetization.
Differences between online casinos and social casinos
The main difference between online casinos and social casinos is that online casinos use real money and are regulated by the relevant gambling authorities, while social casinos operate on virtual currency and are entertainment-oriented.
Online casinos provide the opportunity to wager real money on games such as slots, poker, and roulette, offering players the chance to win cash prizes. These platforms have strict regulations and licenses, ensuring player safety and security.
Social casinos, on the other hand, focus on interaction and socialization. Players can communicate with each other, share gaming moments with friends, and create virtual communities. Gaming becomes not only entertainment but also a social activity, where an important aspect is the opportunity to socialize and meet new people.
Overall, each type of casino has its unique benefits and attracts different types of players, catering to different needs and interests.
Why social casinos are so attractive to players and business people
The main reasons for the popularity of social gambling include:
- Social interaction.
This type of casino game offers users the opportunity to socialize and compete with other gamers around the world. The social aspect attracts those who are not only looking for entertainment but also socialization, which makes the game more fun.
- Safe Environment.
Social casinos offer vivid and realistic gaming features that mimic real casinos but without the risk of losing real money. This creates a comfortable environment to play and practice.
- Low barrier to entry.
Unlike online casinos where the registration and deposit process can be intimidating, social casino games require minimal effort to start playing. This makes it easy for new players to immerse themselves in the game and gradually learn the different aspects. The lack of real betting reduces the level of commitment and fear of playing.
- An alternative in regions with gambling bans.
Social casino games are growing in popularity in markets where real money gambling may be banned or restricted. They provide a legal way to enjoy casino games in such regions.
- Social Responsibility.
Studies show that social gaming does not pose a significant public health risk, allowing it to avoid strict regulation. This creates opportunities for operators to make money legally in such markets.
All of this has contributed to social casino games filling a niche in the market, providing players with new experiences and the opportunity to have fun without the risk of financial loss. Their appeal continues to grow, opening up new opportunities for operators and players in the digital space.
Portrait of social casino players and market outlook
According to 2023 statistics, the audience of social casinos is mainly represented by people over 40 years old. This age group spends an average of 17 minutes a day playing, with an almost equal distribution among players between men and women (women are even slightly more numerous – about 46%, which distinguishes this category from traditional gambling).
Most players use mobile devices, making social casinos a quick and affordable way to have fun, especially among those looking for a way to relax during the workday. Social casino games are in demand among those looking for fun and socialization rather than cash winnings. The ability to compete with other players and achieve success through elements such as leaderboards, leagues, and tournaments makes these games particularly appealing.
The social casino market continues to grow, attracting new users through advances in technology and improved gameplay. It is estimated to be worth billions of dollars, with a projected increase in the coming years. They are becoming especially popular in regions where traditional gambling is banned, such as the Middle East. They offer players the opportunity to enjoy the game in an environment where real betting is not available.
For entrepreneurs, this opens up opportunities to create and promote products that fulfill the need for social interaction and competitive spirit, offering a unique gaming experience for mature audiences.
How does a business profit from a social casino?
Social casinos are monetized mainly through in-app purchases (about 70% of revenue). Unlike traditional casinos where players can win real money, there is no withdrawal option in social casinos. Players can buy credits or virtual goods to continue playing, but their winnings are limited to additional chips or game spins.
Many games in this category use a freemium model: the basic version of the game is free, but players can spend money to gain additional benefits, extend game sessions, or buy virtual items. This model builds on players’ desire for instant gratification, which drives them to make purchases.
Additional revenue also comes from advertising, especially reward-based advertising, where players can earn bonuses for viewing ads.
Through a combination of in-game purchases and a variety of advertising methods, game developers can effectively monetize social casinos, even if the games themselves remain free to download and start playing.
How to launch your social casino?
Launching a social casino in 2024 is a complex but promising process that requires careful preparation, innovative marketing approaches, and legal compliance.
Key steps in the process include:
- Researching legal requirements in the target market, obtaining the right licenses, and ensuring compliance with regulations, including anti-money laundering measures.
- Developing a detailed business plan, including casino structure, revenue sources, and objectives. A SWOT analysis will help assess strengths and weaknesses.
- Selecting a reliable software provider that will offer a diverse selection of games and ensure security. Regular updating of the range of games.
- Creating a user-friendly and attractive website that is consistent with the brand, with varied and secure payment methods.
- Developing a marketing strategy including SEO, social media, and affiliate marketing to attract players.
- Using analytics tools to track performance and optimize casino operations.
Opening a social casino requires a significant investment in licensing, software, marketing, and security, but with the right approach, it can be a successful business.
What the future holds for social gaming
The social gaming market continues to grow rapidly and will see steady revenue growth in the future. Casino social gaming revenues are projected to grow from $6 billion in 2021 to $9.82 billion by 2028, a compound annual growth rate of about 6.3%.
Key trends shaping the future of this industry include the integration of augmented and virtual reality, making games more immersive and attracting a younger audience. Blockchain technology and non-replaceable tokens (NFT) are also opening up new opportunities for transparency and security, and mobile platforms continue to dominate social gaming, providing a more dynamic and short-term gaming experience.
The Asia-Pacific region, including countries such as India and Southeast Asia, is showing significant growth due to improved access to the internet and mobile devices, which is driving increased interest in social gaming.
Summary
Social casino gaming, while not the most lucrative vertical in mobile gaming, has significant potential for growth. Developers are integrating casual games and utilizing new technologies such as 5G to attract a wide audience and improve the multiplayer experience. In addition, social casinos circumvent gambling restrictions as there are no real money bets and no possibility of money laundering, reducing regulatory pressure.
Monetization is still focused on in-app purchases, but in-app advertising is becoming increasingly important. Forecasts show that revenues in this area will grow and social gaming will continue to evolve. Operators looking to successfully engage with players should look at the popularity of live dealer games and tournaments that drive engagement.