M ONT H I N M I NUT ES
MONTH IN
NUMB3RS
$7.4m
The amount of
revenue generated
during the first
month of regulated
online gambling in
New Jersey
See news on p14
6
PartyPoker’s global
ranking in the latest
PokerScout figures
See feature on p38
19%
Year-on-year
increase in French
online sports
betting GGR during
2013
See our cover
feature on p24
£38.8m
32Red’s revenues for
the 12 months ended
31 December 2013
See interview on
p45
8
RIGHT TO
REPLY
REAL-MONEY GAMING
IN THE US CAN WAIT
DERRICK MORTON
CEO, FLOWPLAY
As a social casino developer, the
fact that online gambling legislation
isn’t moving faster doesn’t bother
me a bit. I can take advantage of
the high ARPUs (average revenues
per user) afforded online and in
the mobile game industry, without
the regulatory burden. While
I’m certainly intrigued by this
developing market, to maximise our
social gambling business I need to
focus on the possibilities accessible
within the next 12-18 months.
There are a lot of things to envy
about real-money gaming (RMG).
While typical social casinos can
run an ARPPU (average revenues
per paying user) of more than
$200 depending on the channel,
an RMG online casino may be able
to generate two to three times
that amount, but with much higher
acquisition and operational costs.
Social casino customer acquisition
rates generally run from $1.50-$2
on the open web and Facebook
to $3-5 on mobile, depending on
the operating system and amount
of targeting. About 2.5% of these
players convert to a paying player,
making the true cost of customer
acquisition $60-80. Compare this to
the cost of acquiring a real-money
player which is typically around $150250 depending on the type of game.
Of course the numbers still work
for RMG when looking at it from
the cost per acquisition and lifetime
value perspectives until you look
at the limitations in the size of the
player base. Current estimates from
SuperData Research show there are
173m social gambling players versus
49m online RMG players.
I fail to see how this is achievable
without regulating the entire game
market, which, on all platforms
outside of consoles, has switched to
the free-to–play model. Everyone
is ‘wagering’ virtual currency. But
that’s a much bigger discussion.
FAMILY
TREE
MR GREEN
Mr Green has seen a number
of personnel changes in
recent months, including the
appointment of a new CEO
and head of casino
www.egrmagazine.com