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Casinos for you
The Incredible Global Reach of Social Casino Games
By Shane Addinall Apr 28, 2022 IndustrySocial casino games and the rise in revenues from this gaming segment have many awe-stricken. A recent study shows that the best may yet be on its way.With the continuous adoption of smartphones and better connectivity on a global scale, social casino games could reach revenues of $8.7 billion in 2026. A report from Koncept Analytics includes an in-depth market overview while analysing the impact of COVID-19 on social gambling, the strengths of the industry, and weaknesses that could affect various facets of the market.
Social casino games attract players from all parts of the globe. Unlike real-money gambling, player demographics include those younger than 18. These freemium gambling games often include networks of family and friends enjoying games together in a digital space. Mobile casino genres are one of the most significant branches of social gaming. In 2020, the market reached revenues of $6.2 billion.
The league of casino and social gaming providers to carry the industry toward a 6.24% rise in CAGR between 2022 and 2026 include the likes of Aristocrat Leisure, Zynga Inc, Playtika, Caesars Entertainment, Scientific Games, and DoubleU Games.
Strengths and Opportunities
Leading providers in the social casino industry include experts in the gaming and gambling sectors. Koncept Analytics' report highlights key factors that push the industry to unprecedented revenue heights. Rapid expansion within the global gaming industry and the continuous growth of mobile game players contribute to the success of social casino games.
Paired with the significant adoption of smartphones, plus a surge of users connected to the internet and social media, the industry expects further record-breaking growth. The report points to the positive market growth during the 2020 pandemic lockdowns and how many new players turned to social casinos for their entertainment value and interactive features.
North America is the fastest-growing region for social casino gambling, and players from the continent cover all age groups. The publishers credit this to device availability and the increased adoption of 5G technology throughout the USA.
Social casino game categories are like real-money online gambling platforms with slots, bingo, poker, and other casino games available to players – but without the cost. An opportunity for social casino providers is the notable increase in investment in mobile gaming advertising.
Weaknesses and Threats
Many social casino platforms depend on third-party platforms to function in the social media space and tap into the interactive, social offering where players network with family and friends. Some offer stand-alone app products. This is an area of weakness according to Koncept Analytics, as third-party dependence is a hurdle that providers must negate.
The key to successful gaming is player retention. According to the data, many social casino players eventually migrate to real-money gambling. These free-to-play gambling games give the player daily rewards to play, but the limited credits/tokens only last a short while. Social casino monetisation depends on those who choose to continue playing by utilising in-app purchases. Although these players spend money, the reward remains digital.
Once providers of social casino games crack the code of engaging rewards that leads to higher retention rates, the industry may become unstoppable unless regulatory protocols prevent it. Because of the lack of age restrictions, social casino gaming and other gaming that offer digital assets or rewards for real money are under heavy scrutiny and may soon become regulated.
Ripe for the Picking
These growth drivers, market trends, and challenges make social casinos a space to watch closely. The most popular titles in the market segment come from non-casino developers Zynga, Playtika, and Moon Active.
With casino giants like Aristocrat Leisure, Caesars Entertainment, and Scientific Games taking the opportunity of social casinos head-on, the next couple of years may produce surprising results.
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