iGB Intelligence reports Social Gaming report | Page 21

PART 2 - SOCIAL MEDIA AND SPORTS BETTING He adds: “The real challenge is coming up with a product that is innovative, social and also appeals to both the high-rolling types and the recreational punter; because if you can get that then you really are spreading your risk. You get the volume from high rollers that recreational players wouldn’t give you.” As yet, no social betting product has managed to go viral and crack the mass market. Besides the obvious need for an innovative and fun product, the venture has to be supported by a massive marketing budget in order to acquire customers outside of the hardcore players and early adopters. User acquisition is a significant and expensive challenge, as is education when betting with a bookmaker is ingrained in the mindset of those casual bettors wishing to back their hunches. Alpago says: “Because it [Betfect] is a relatively new, novelty product it is definitely hard to initially explain it to users, so there is still a lot to be done around education and explaining that we are not a bookmaker. Lots of people ask us that.” Speaking to these start-up entrepreneurs, it seems clear that they are converging social media and sports betting: rather than trying to be a ‘social betting operator’, Facebook-only or standalone betting-related social network, they are leveraging the tech and social platforms at their disposal to market their products and drive traffic. Scientific Games (including Williams Interactive, Bally and DragonPlay) Highlighted titles Platform DAU MAU DAU/MAU ARPDAU Revenue Jackpot Party Facebook 552,194 2,159,216 25.6% $0.27 $4,541,172.21 Jackpot Party Mobile 620,848 3,478,590 17.8% $0.18 $3,322,113.70 Gold Fish Casino Slots Facebook 300,258 885,857 33.9% $0.10 $943,294.51 Source: SuperData, July 2016 Social casino revenues (desktop + mobile) by region, 2016E Europe North America $1,695m Latin America $169m $775m Asia $926m Rest of the World $157m Source: SuperData, July 2016 iGaming Business Social Media & Mobile Betting Report 17