One of the primary innovations in the way iGaming presents itself is the social casino concept. This is a new methodology of providing online gaming products that bridge several factors. It’s an innovative method of bringing the ethos of gambling to a wider audience.
This article will showcase the truths behind the social casino market, namely, how this phenomenon joined an already stacked list of online gambling trends.
The article will feature several clarifications about the nature and function of a social casino. It will then delve into the current market figures and estimations for the future. The latter half of the article will explain the factors behind the success of this business model.
For the sake of showcasing the viability, we will also provide some notable examples of successful social casino operators. The market is as good as its luminaries and its consumer base. Let us go along the lines of our article and explore social casino gaming!
What is a Social Casino?
A social casino is an online gaming platform that does not provide any payments. It essentially mimics regular online casino games with real money payments. It provides the same type of games, such as slots, and eliminates the associated payouts.
Users don’t have to pay any money to access social casino games but will not benefit from them either. So, the natural question would be: what’s the point of a social casino? We’ll answer the question from both the player’s and the operator’s perspectives.
Playing at a social casino is hassle-free because it allows you to play free of cost. You don’t worry about losing money or chasing wins compulsively. You play for the sake of playing. Furthermore, these platforms actually emphasize socializing through competitions, global chats, and other multiplayer efforts.
A social casino earns revenue in two primary ways. The first is ad revenue. They run ads for countless products and services. If the casino is popular, it generates valuable traffic and clicks that benefit the ad operators. The second is internal currency. The social casino will charge you for specific benefits like exclusive games. This currency is akin to those in mobile games.
Another question arises: do people actually care about social casinos?
The Market in Figures
The answer to the previous question is a resounding ‘Yes.’ The market figures will show this expeditiously and emphatically. We will provide two sources that give approximate numbers in the same area and compound their results.
Firstly, we have a report from Business Research Insight that cites the social casino market of 2021 at around $6.5 billion – right during the first waves of the pandemic aftershocks. Research And Markets reports the 2023 market at about $7.39 billion.
The latter source estimates another surge in global social casino revenue. This estimate sees the market rise to about $8 billion flat ($7.99, more precisely). This would see the CAGR (compound annual growth rate) at a staggering 8.1%.
These two sources disagree on the forecasted expansion of the market. However, they do agree about continuous expansion, which is a very notable factor.
- Business Research Insight sees the market growing to around $11.87 billion, with over 6% in annual CAGR.
- Research And Markets think that the market will reach $11.20 billion by 2028, with a CAGR of 8.8%.
The bottom line is that specialized research entities have a consensus on the fundamental outcome: market progression and expansion. The numbers do not lie: social casino trends are synonymous with its progression.
Explaining the Ascension
Let’s give some insight and essential context about this progression. It’s safe to say that the entire iGaming sector’s market (of over $90 billion in 2024) overlaps with this ascension. The explanations connect online and social casino gaming in multiple ways.
Technological Advancements
Wider and faster worldwide internet connectivity is a key factor in this discussion. People can access online entertainment much easier thanks to adequate internet connections and cheap(er) smartphones. Any digital leisure format benefits from this trend, not just social casinos.
Regulatory Intervention & Social Destigmatization
In this article, the writer’s opinion is that this is a trickle-down case. Online gambling services benefit from clear regulations that filter the market and allow legitimate operators to function properly.
While social casinos aren’t gambling per se, they use very similar business and platform models to real-money casinos.
Prospective users see digital gaming as a government-sanctioned and regulated activity. It increases the acceptance of this entertainment form and allows it to succeed.
Affiliate Backing
The entire business sector benefits from affiliate marketing. The popularity of SlotsCalendar exemplifies the main advantageous pillars: visibility through positive traffic and informational content.
The first generates more access and website growth, while the latter helps the destigmatization effort through a proper understanding of this entertainment model.
The Cost-Free Status
This argument is as simple as it sounds. Players with an aversion to risking their funds benefit from the chance to play cost-free. Not having to pay to play and enjoying the boons of gaming and socializing for free is a definitive advantage.
Better Game Quality
Why do people play slots? Because of the spinning reels, the feeling of anticipation, and the resulting gratification. The current slot market that social casinos tap into provides countless new-age games with incredible graphics and integrated models of gamification.
Since this gaming model is progressing and becoming more engaging, social casinos benefit immensely from providing them for free.
Notable Examples of Success
As promised, we will highlight some of the most successful names in the social casino industry.
Blazesoft is one of the trailblazers in this market through its ZulaCasino brand. Moreover, Zynga Inc, Creatiosoft Solutions Pvt Ltd, Tripledot Studios Limited, and Playtika are among the most well-known names in this market.
There are also several heavy hitters in this industry. Giants like Tencent, Caesars Entertainment Corporation, and International Game Technology have a hand in the social casino phenomenon. We can safely say that the phenomenon is far beyond a simple niche.
Conclusion
To conclude, the social casino market is a growing yet immense part of the digital gaming industry. It has excellent business figures and impressive forecasted growth.
Naturally, technological advancement, free-to-play products, affiliate help, and regulatory clarity are assisting factors. In the writer’s opinion, it’s definitely a phenomenon worth following as the market develops!
