Social casinos are sprouting up all over the place. They’ve become the moniker for good clean fun without worrying about losing cash.
iGaming Business claims the sector is thriving in Asia where real money online play remains limited. It’s expected, considering the free-to-play model engages customers on a social level.
Social gaming performs well as a profit-making business because they don’t rely on converting social gamers into contestants vying for real cash. The business model solely depends on in-app purchases.
Diversifying Social Platforms
Inspired by the sale of Playtika to a Chinese consortium in 2016 for $4.4 billion, gaming executive Shaun McCamley created his own social gaming platform.
He believes the key to success is social platforms offering variety, not only slot machines and poker games.
The market has become attractive for tech startups. Leveraging their content libraries and expanding their portfolios theoretically increases revenue and is a hefty return on investment. The idea looks good on paper, but what are the odds of it being a sure bet?
Below, we’ll explore the startup landscape and how it fits into the social gaming ecosystem.
The Omnipresent Aspect
Video games have advanced in leaps and bounds, says J.P. Morgan. No longer confined to only one medium, gaming streamers have made gaming culture more accessible to the masses.
According to the Entertainment Software Association, about 61% of Americans play games at least an hour weekly. Another 88% play online games like free social casino games.
It’s a goldmine for startups, allowing them to create new content and game genres. Free-play sweepstakes games are already leading the way in encouraging responsible gameplay. Instead of cash, they offer virtual coins and incentives for first-time players.
Rebet says there’s no purchase necessary and you must be 18 years or older to play.
More Innovation
The playing field is huge, giving startups enough room to move and innovate. However, companies need to let go of their conventional way of thinking.
Unlike traditional tech startups that scale software, gaming companies prioritize creating compelling IP (intellectual property) to attract and retain players.
The challenge of developing intriguing IP can become a sticky issue. With more gamers comes a market flooded with new titles and developers, explains J.P. Morgan.
When social gaming startup Bunch bagged a $20 million Series A a few years ago, General Catalyst told Forbes there was a need for the next generation of gaming.
Whenever the venture capital firm hears of a new gaming infrastructure product, they are keen to explore the financial possibilities.
The Attraction of Social Casino Platforms
One of the biggest appeals of social gaming websites is that they combine the fun element of casino games with a community-focused experience.
More and more people are engaging, no matter their age, simply because there’s no chance of running out of cash. Social casinos use virtual currencies like free coins, free slots or sweepstakes promotions, letting players enjoy games without financial risk.
Let’s not forget the social part of the puzzle. Most sites feature leaderboards, friend invites, tournaments, and chats, enhancing the social aspect.
Whereas some online games are only available on a PC or gaming console, most social games are compatible with any device and offer variety, from slots to live dealers.
Most startups must become familiar with the legal wranglings surrounding real money casinos. Operating under sweepstakes laws, social casinos are legal in most U.S. states, offering hassle-free entertainment.
Scaling New Frontiers
Social sports betting and free-to-play sportsbooks are fast becoming the preferred online gaming methods in mobile gaming.
The widespread use of smartphones and tablets offers the flexibility to play casino games anywhere. Mobile gaming has expanded access to online casinos, enabling play on the go and growing the player base.
The exponential growth has spurred startups to develop dedicated apps or responsive sites for a seamless experience on any device.
Social gaming is no longer a trend. This year’s Entertainment, Attractions & Gaming Expo Europe (EAG) included the Social Immersive Entertainment Expo, exploring social gaming.
Sessions explored the challenges of social and immersive experiences. Speakers spoke about making a commercially viable product: either innovate or evaporate.
Startups that diversify and venture into social gaming are taking a huge risk. However, it’s clear that if that risk is calculated, the chances of success greatly increase.
Is it a sure bet? We don’t know. Is it worth exploring? Yes. Take a page from Discord’s playbook. Last year, the gaming community platform announced its return to social gaming.
If you’re weighing your odds, the revelation bodes well for startups looking for a reason to jump in, head first. And besides, who doesn’t like free games?
