Social gaming is massive. Players all around the globe have taken to it, and iGaming operators would do well to take note. What is social gaming, and what are its prospects and challenges? Read on to find out.
Social gaming originated on social networks as a way to have fun and stay connected with friends and family. In the past few years, games like Farmville, Mafia Wars, and Words with Friends have spread like wildfire across social media platforms. As one might expect, social games’ emphasis on the interaction between players mirrors the community-centered nature of social media platforms.
But games based on virtual farms, competitive wordplay, and organized crime are only one side of the social gaming phenomenon. Social casino games, which are (mostly) free-to-play versions of online casino games, are also enjoying widespread popularity. They offer the same user experience and gameplay as standard online casino games, but using a freemium model. Social casino games give users free daily bonus credits — e.g., chips or spins — to play with. When the player has run out of their daily bonus, they are unable to keep playing unless they pay for more credits.
These games may be integrated into social media, or published as standalone apps. KamaGames’ Pokerist is a highly popular option, as is Slotomania, a free-to-play online slot machine hall. Zynga, publisher of the hit social game Words with Friends, also has a line of social casino games that includes poker and slots. Finally, Playtika is hands down the biggest fish in the pond, with 22% of the entire app market share and a portfolio that includes 3 of the 6 highest grossing iOS social casino games in the US — Slotomania, BingoBlitz, and World Series of Poker (WSOP).
The two prime motivators for playing social casino games are entertainment and socialization. Users like the fun and novelty of the experience, especially when it comes to connecting with other players via chat during gameplay. Another crucial aspect of social gambling that motivates players to stick to their devices is the competitive element. Leaderboards trigger the basic human psychological need to compete and outperform others: it’s the same principle at work in promotional tournaments held by online casinos — a functionality that many of our partner operators provide.
The growth of the market is rapid, and huge increases in technology and gameplay experiences appeal to more users from year to year.
At the end of the day, the key difference between standard online casinos and social casinos is one thing, and one thing only: money.
With online casinos, players bet real money and hope to win real money. In contrast, social casinos operate on a freemium model, emphasizing entertainment and community interaction over hitting a jackpot. These platforms offer similar games, such as slots, poker, and bingo, but the currency used in social casinos has no real-world value, ensuring that it’s not classified as gambling.
This classification makes social casinos legally accessible where real-money casinos are not, allowing a broader audience to engage in these games purely for enjoyment and social interaction.
Additionally, even though players don’t bet real money, social casinos still generate significant revenue through in-game purchases, underscoring their popularity and the engagement they foster among players.
Social casino games come in the same varieties as real-money games.
There are some popular types of social casino games:
Slots: These are perhaps the most recognizable social casino games. Players spin the reels to match symbols along pay lines, similar to traditional slot machines in casinos. The difference in social casinos is that winnings are paid out in virtual coins.
Poker: Social poker games allow players to compete against each other or play cooperatively in tournaments. The gameplay mimics real-world poker, but instead of betting with real money, players use virtual chips.
Blackjack: This is a popular card game available on many social casino platforms where players aim to beat the dealer’s hand without going over 21. It’s played for points or virtual currency.
Bingo: Social bingo games are a hit among players who enjoy community-based games. Players mark off numbers on a card as they are drawn randomly by a caller, aiming to complete a specific pattern faster than others.
Roulette: In social roulette, players place bets on where they think the ball will land on the roulette wheel. The social version uses virtual chips for betting.
Baccarat: Another card game that is often available in social casinos, where players aim to have the hand with the highest score, up to a maximum of nine.
These games are designed to be engaging and are often enhanced with vibrant graphics, interactive features, and social elements like leaderboards and the ability to share achievements with friends.
Whereas in standard casino games like slots, roulette, blackjack, or poker, players wager real money with the possibility of winning more of the same, in social casino games there is no option to withdraw, even when players pay for additional credits in-game. There is no prize or jackpot: when players win, they receive additional spins or chips to play with.
As we mentioned, social games are monetized through in-app purchases — players can pay cash to extend their playing sessions.
Many social casino operators use this as an opportunity for upselling. For example, players can be given the option to pay a certain amount for a certain number of credits — e.g., $10 for 100 chips — or pay a marginally higher amount for a substantially greater number of credits — say, $11 for 200 chips.
This is known as the freemium model: free-to-play with the option of pay-to-play. Users might pick the game up on a free-to-play basis and then decide to pay to keep the fun going. This is a very simple way for game developers to capitalize on the human tendency to pursue instant gratification.
The increased interaction offered by social casino games is growing in appeal in the increasingly digital age. Players search out both their friends and their rivals and develop strategies against each other by deriving lessons from their playing histories together. The social element is critical. It is one of the most in-demand aspects of contemporary online life, with internet users becoming more and more aware that sometimes the world wide web can create as much isolation as it does connection.
As social gaming is primarily a method of connecting with other internet users, one big lesson that operators can take away from studying the phenomenon is that players respond very positively to enhanced sociability. This insight is confirmed by the explosion in popularity of live dealer games, where players can chat and connect with other players, as well as interacting with a dealer.
As the stakes for social casino gaming are lower than for online casino gaming proper, there’s a lower barrier to entry for new players and a higher chance they could be nudged from idle interest to trying a few games. The process of signing up and making a real-money deposit on an online casino can be intimidating, and social casino games provide a nearly identical entertainment experience without the same level of commitment. This could potentially be used as a form of cross-selling to drive social gamers towards real-money online casinos.
Social casino gaming also has a particular appeal in markets where online casino gambling is prohibited by law. In Australia, for example, major iGaming operators offer modified versions of their online casinos — minus deposits and withdrawals — to mimic the legal social casino gaming experience. This allows them to legally generate revenues in a closed market without having to build a product from scratch.
In a 2015 report on social gaming, the United Kingdom Gambling Commission (UKGC) concluded that social gaming does not pose any significant societal risk regarding harmful behaviors commonly associated with gambling (such as problem gambling and underage gambling). The UKGC made it clear in a 2019 statement that social casino games would not be subject to regulation, provided operators demonstrated social responsibility.
Social casino games attract a diverse player demographic, which is not limited, as you may think, to young adults. In fact, according to Mobile Games Index 2023, a social casino gamer's most commonly cited demographic profile is people in their 40s.
In turn, the UKGC report provided an estimate that only roughly 1-5% of social casino gamers go beyond their allotted free plays and pay to continue playing; of this fraction, 15% generate 50% of all social casino revenues. This distribution mimics that of gambling, where high rollers account for a massive portion of the revenues.
According to NewZoo, 58% of social casino gamers have also tried gambling for real money. Among players who purchased credits in social casino games, 81% also tried gambling. While there is a significant crossover, operators should bear in mind that players’ motivations are different. As we mentioned earlier, while both online casino and social casino gamers play for fun, social casino users aren’t generally motivated by cash prizes, whereas online casino habitués like to go for the win, hoping to make it big.
The main factors that attract social casino enthusiasts and keep them engaged are the social and competitive elements of the experience.
The opportunity to connect with and compete against players worldwide, enhanced by features such as leaderboards, leagues, and tournaments, motivates players to outperform their peers. As a result, they spend more time refining their strategies within the game.
Moreover, many social casino fans note the similarities between social casino gaming and actual gambling experiences. These similarities include the realistic casino visuals and the excitement of the gameplay.
Launching a new online social casino in 2024 is an ambitious but achievable goal, blending meticulous planning, strict legal adherence, and innovative marketing strategies.
Here’s how to successfully navigate the journey of opening your own online casino:
Leave it to professionals. Schedule a free consultation with our legal team to discuss obtaining a gambling license in the jurisdiction best suited for your business operations.
The growth of the social gaming market shows no signs of stopping. Revenues from social casino gaming have been growing steadily for over half a decade. According to Global Social Casino Games Market Analysis, 2021 - 2028, the social casino games market is expected to increase at a CAGR of around 6.3%, from about $6 billion registered in 2021 to $9.82 billion over 2028.
Several key trends and developments are influencing its future. In addition to the steady growth observed in social casino gaming revenues, advancements in technology and changing consumer behaviors are further shaping the industry. More and more social games are integrating augmented reality (AR) and virtual reality (VR), offering users more immersive and interactive gaming experiences. This technological integration is expected to attract a younger demographic and potentially boost user engagement and retention rates.
Furthermore, the rise of blockchain technology in gaming has introduced new possibilities for transparency and security, particularly with the implementation of non-fungible tokens (NFTs) in games. These digital assets allow players to own unique in-game items and earn rewards that can be traded or sold securely, adding a layer of economic activity to social gaming.
Mobile gaming continues to dominate the social gaming landscape, with an increasing number of users accessing games through their smartphones. This shift has led to a more on-the-go gaming experience, with games being designed for shorter, more engaging play sessions. As a result, mobile platforms are seeing significant investment from game developers aiming to capitalize on this trend.
Regionally, the Asia-Pacific market shows signs of robust growth, driven by increasing internet penetration and the widespread adoption of mobile devices. Countries like India and Southeast Asia are emerging as significant markets for social gaming, owing to their large, tech-savvy populations and increasing disposable incomes.
With no real money at stake, social casino games slip right by gambling restrictions. Furthermore, as winnings cannot be withdrawn, the sector doesn’t pose any opportunities for money launderers, thus further alleviating pressure from regulatory authorities.
As revenues are projected to continue rising for the foreseeable future, it seems that social gaming is here to stay. Social game operators are devising new products, and leading brands of the gambling industry — online and offline alike — are looking into releasing products of their own as a promotional tool.
The main lesson that online casino operators can learn from the success of social casino gaming is that interaction between players — be it in live dealer games or tournaments — can do wonders for engagement. It’s no accident that live dealer games are experiencing a surge in popularity, and that tournaments are at this point considered a must-have promotional tool. Acquiring first-class live dealer games and tournament-ready slots from quality providers has become a necessity for all operators.
Some of Slotegrator’s most exciting partner providers offer exactly that: amazing live dealer titles and customizable tournament promotions. Check out the profiles of Evolution, Pragmatic Play, Playson, Spinomenal, or Betgames.TV and request a free consultation with our sales team to learn how to bring stunning live dealer games and exciting tournament play to your online casino!
Social casinos work by offering casino-style games on a platform where players can engage without the risk of real money gambling.
Social casino games primarily generate revenue through in-app purchases. Players can buy virtual chips, coins, or other items that enhance their gaming experience but do not translate to real-world earnings. These games often employ psychological tactics to encourage users to make purchases, offering various incentives, bonuses, or premium content.
The social casino market has been experiencing significant growth. According to Global Social Casino Games Market Analysis, 2021 - 2028, the social casino games market is expected to increase at a CAGR of around 6.3% from about $6 billion registered in 2021 to $9.82 billion over 2028.
The legality of social casinos varies by country and their specific gambling laws. In many regions, social casino games are legal because they do not involve gambling with real money. However, players are encouraged to check their local regulations as the legal landscape can change and may involve specific restrictions or requirements.
We should draw a distinction between social casinos and sweepstakes casinos. Social casinos are online platforms where users can play games like slots, poker, and blackjack without betting real money. Sweepstakes casinos, on the other hand, operate on a model where players use virtual currency that can be redeemed for real cash prizes. Both types provide a gambling-like experience but are structured to comply with legal standards in areas where traditional online gambling may be prohibited.
Typically, social casinos do not offer real money payouts. Players gamble with virtual coins that cannot be exchanged for real money. However, in sweepstakes casinos, there is an element of winning real cash through sweepstakes entries that can be redeemed. Players need to understand each platform's rules and the nature of any prizes or payouts offered.
