iGB Intelligence reports Social Gaming report | Page 12

Part 1 – SOCIAL CASINO Breakdown of market share (estimated) Others 36% CIE 23% IGT 9% Zynga 9% Aristocrat 5% Churchill Downs 5% GSN 6% Scientific Games 7% Source: company reports too, additional revenues from unregulated markets became attractive as the scale and numbers became apparent and astonishing. Growth in new and complementary markets became too compelling. And if you didn’t [enter the market] your competitors were already there, so, defensively, it made sense. The gamer profile also is a natural fit; around 80% of the footfall in bricks-and-mortar casinos play social casino games.” That’s your slot When it comes to the most popular type of social casino game, slots continue to dominate. Indeed, slots account for an estimated four-fifths of the social casino market, while it has been calculated that the social slots segment is worth US$1.5bn across all platforms. As is mostly the case with real-money gambling (RMG) slots, content is key, so many of the top social slots publishers harness the power of licensed, third-party branded content to differentiate and strike a chord with players. A case in point is Zynga’s instantly recognisable Wizard of Oz and Hit it Rich brands, featuring the likes of The Terminator and Sex and the City. Likewise, slot machine manufacturers are able to harness their heavy investment in R&D and branded content and IP for their social casinos. “When you’re dealing with social slots, it’s all about the content and 8 brand,” says Kelly. “So if you are an established RMG slot manufacturer putting US$100m, US$200m or US$300m annually into R&D every year for creating new games, new game mechanics, acquiring brands and having leverage to acquire brands, you inherently have a scale that other people aren’t going to be able to reach.” Although five-reel video slots have become ubiquitous, social casino has witnessed the growing emergence of traditional variants like three-reel slots. Studios have developed these simpler, distinctive games to target certain player demographics and stand out from the crowd. On top of this, there are attempts to make slots more social with multiplayer tournaments, and skill elements are coming around the corner to appeal to a wider audience who find luckbased games like slots soporific. Social casino studios also enjoy the luxury of being able to experiment and push the boundaries with game mechanics and features because they don’t face the same regulatory scrutiny as their RMG cousins. Plus, games and content can be launched and updated much more quickly. Besides slots, the remainder of the market comprises of traditional casino games such as roulette, blackjack and video poker, as well as inherently social games such as bingo and poker. Yet while slots and blackjack are particularly conducive to short bursts of play, or ‘snacking’, on mobile throughout the day, poker can’t always replicate this gameplay on portable devices. “With a slot game it’s 10 minutes of being fully engaged,” says Hussein Chahine, who has been CEO of social casino Yazino (slots and blackjack) since establishing the start-up in 2008. “I’m not saying the poker market is gone, but sitting on a table with seven players and waiting for your turn is a bit boring for people who are playing for 10 or 15 minutes,” Chahine argues, adding that, unlike slots, there are only so many ways you can iterate and overhaul a poker app. After all, poker is poker. “If you take the iOS App Store, in the top 20 you have five social casino apps. Poker used to be practically number one on the App Store but now it’s not even in the top 20.” While it’s a misnomer to label some games ‘social’ when you are simply spinning a slot machine against the house, publishers are trying to add more real life social elements to foster interaction and a more community-based online environment. For instance, iGaming Business Social Media & Mobile Betting Report