Exploring Australia’s Rising Fascination with Social Casino Games

Australia has an interesting history when it comes to gambling, as land-based forms of play are allowed. However, online gambling is a different story. Let’s take a look at the current laws regarding online casino play below.

Online casinos are not licenced and regulated in Australia, where slots and table games are classified as interactive and are off-limits. The Interactive Gambling Act of 2001 (IGA) was passed to regulate gambling and protect the public, targeting online gaming operators and making it an offence for them to offer real-money interactive gambling to anybody in Australia via the Internet.

Australians currently can’t take part in any of the following forms of gambling online:

• Slots (Pokies)
• Casino-style games (Poker, Blackjack, Roulette)
• Scratchies
• In-play betting on sporting events
• Sports betting services not holding an Australian licence
• Betting on the outcome of a lottery

Gambling operators may not advertise banned services; they may also neither promote nor offer credit for online betting. The purpose of the IGA and any penalties is to target the providers of online gambling services, not current or potential customers. The legal age for gambling in Australia is 18, and winnings are not taxable.

 Social Casino Gaming

Social casino gaming is a form of simulated gambling as it resembles and functions like online casino gambling without the opportunity to withdraw any winnings. Social gaming does not require any licence under Federal, State, and Territory law in Australia, and social casinos are not regulated under the Interactive Gambling Act as gamers cannot cash out winnings. Therefore, social casino games are not defined as gambling services.

Social casinos offer a range of online casino-style games that gamers play primarily for entertainment. But also for other reasons, such as avoiding or substituting for real-money gambling, relaxation, and learning, practicing, or sharpening skills for authentic gambling. Social casinos are usually free to download and play, include in-game purchases, and are widely available online on websites, through social media sites such as Facebook, and in app stores.

Players of social casino games are awarded a certain amount of chips or credits to begin with, which are reloaded after a period, but with the option to make in-game purchases of additional credits with real money to either continue playing or to increase their bet stake.

Virtual credits can be used to unlock new features, buy items, compete for standing on a leaderboard, or to engage socially with other players. Tournaments or leaderboards are advantageous for social casinos in creating player engagement and loyalty and reinforcing the social element.

 Social Casino Revenue

The revenue of social casino games is derived from variations of in-app purchases and advertising. Social casino games, which are usually free-to-play online casino games, have become increasingly popular in Australia.

They offer a similar user experience and gameplay to regular online casino games, employing a freemium model. Social casino games are played with daily bonus credits - either chips or spins. The player then has to pay for more credits once the daily bonus is depleted.

The freemium model allows players to make micro-transactions or in-game purchases. This pay-to-play method within the freemium model will enable players to get more credits quickly, advance in levels, or earn other bonuses like extra spins, contest boosters, loyalty points or specials. There are 2 business models employed by social casinos, the other being the commercial model, which is used to generate revenue through in-app advertising dollars.  

 The Global Social Casino Marketplace

The global social casino market is expected to see increased growth rates due to the rising number of social media users, as well as cross-platform mobile device usage, and growing gaming traffic.  

The global social casino market was worth US$7.3bn in 2021, with the US accounting for 60% of the market share. As of the first half of 2022, China, Taiwan, Australia, and Canada completed the top 5 markets by consumer spend.

Australian consumers spent US$302m on mobile slot games in 2021. Slots are the most popular form of all social casino games and the top revenue earner for the social casino market, with other games like casino card games, poker, and games of chance like roulette and bingo also favoured by players.

The global social casino gaming market is expected to grow 5% per annum through 2025.

 The Rising Popularity of Social Casino Gaming in Australia

According to ACMA, social casino gaming experienced a strong uptake during the pandemic, with a sharp jump in demand during 2020 and, to a lesser extent, during 2021, as users pivoted their habits to mobile and online spaces.

The Australian Media and Communications Authority (ACMA) has published a new report called Snapshot of Social Casinos, providing insight into industry trends in a growing market. The report shows Australia was in the top 5 markets by consumer spend as of the first half of 2022.

In Australia, a federal parliamentary enquiry is looking into whether simulated gambling, such as loot boxes and social casino games, should be included in the Interactive Gambling Act 2001 that banned online gambling.

Pokies simulator Lightning Link Casino has made more money than any other game in Australia almost every day for 3 years, according to app store analyst Sensor Tower. It is one of many free-to-play pokies simulators made by Aristocrat, the biggest poker machine manufacturer in the country. Aristocrat have imported their intellectual properties into their mobile casino games whilst incorporating social features and in-app purchases.

Online social casinos have seen impressive growth in recent years in Australia. Aussies love playing all manner of exciting table games and video slots for free on a range of mobile devices. There is also the strong social element involved with playing tournaments online with others from around the world. Many of the best social online casinos offer a competitive environment to compete with other players adding an extra layer of excitement to the social gaming experience.