The online gaming industry is a sizeable one and it continues to evolve. It encompasses many different genres of games and sometimes the only thing they have in common is being played over the internet.
One of the most curious subsectors of it is social casinos. They are sites that let people play casino games online but not for real money. That is the big thing that separates them from mainstream online casinos. Instead of betting on the games for cash, players use virtual tokens that are available through the apps. Otherwise, the experience is more or less the same as playing at a real money casino. All of the really popular games are generally on offer at social casinos too.
To learn more about them and why they are thriving, keep reading.
Contents:
- How Social Casinos Make Money
- Are They Competing with Real Money Casinos?
- The Future for Online Casino
How Social Casinos Make Money?
Social casinos need a different business model to real money ones. Standard casino sites make their profits through the money that their customers bet on the various games. That is not an option for social casinos, as no actual cash is involved in the gambling. Therefore, revenue is derived in two distinct ways:
- In-app purchases
- In-app adverts
The first of these is related to the tokens that customers use to play social casino games. The sites provide players with free tokens to gamble with. Once those have run out though, they must pay for additional ones. The thinking is that the games will prove so exciting that customers are willing to pay.
That is proving to be the case too, as in-app purchases make up the main revenue source for social casinos. They account for close to 70% compared with just 30% derived from advertising.
Are They Competing with Real Money Casinos?
The profits from social casino by the end of the decade are expected to hit $29 billion. Current worldwide profits from the mobile versions are more than $7 billion, so it is a growing part of the industry. That does not necessarily mean a competition with real money casinos though. Much of the popularity of social casino is in places where playing the games for real money is against the law.
This means that it is a legal alternative for people in those places. Of course, social casinos are also used in countries where real money gambling is legal though – like Canada. Canada has a booming online casino industry, with numerous sites for people to play at. The top 6 real money casinos in Canada gain new customers on a daily basis, the competition between the top brands to retain and attract players means new players are often met with bonuses.
The popularity of the activity is huge across the country, as people take advantage of the convenience and ease of gambling online. It is not a place where social casino is needed as an alternative then, so what accounts for Canadian interest in that? The motivations appear to be similar to those that drive people to play real money online casino. Among them are simple relief from boredom and entertainment. Social casinos appeal to people who are worried about cyber-security too, because they do not involve financial transactions.
A combination of varied games choice and stringent security is what makes a good casino site. Social casinos use the same mix of games as real money ones and have adopted most of the same data security measures. All of the existing evidence shows that they are on the rise; with more than 170 million global players. However, real money casinos are seeing their popularity soar as well and one seems to be a pipeline to the other.
Research has found that 62% of real money casino players in Canada started out playing at social casinos. These provided a way to learn more about the games before betting any actual money on them. It suggests that there is more than enough space in the gambling market for both.
The Future for Online Casino:
Social casinos provide a healthy rival to real money ones while also seeding future customers for them. Giving people a taste of casino gaming for free seems to encourage many of them to move on to standard online casinos eventually – especially women.
Now we are seeing large companies investing in social casino. The gambling giant Caesars Entertainment bought the Playtika platform at a cost of $92 billion. That suggests it may merge closer with the wider online casino sector in the future.
Social casino lets people play casino games even if gambling for real money is banned, which has helped to drive its popularity. It is also a gateway to the latter in more liberal countries though.
Disclaimer:
CBD:
Qrius does not provide medical advice.
The Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) outlaws the recreational use of cannabis products in India. CBD oil, manufactured under a license issued by the Drugs and Cosmetics Act, 1940, can be legally used in India for medicinal purposes only with a prescription, subject to specific conditions. Kindly refer to the legalities here.
The information on this website is for informational purposes only and is not a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of your physician or another qualified health provider with any questions regarding a medical condition or treatment. Never disregard professional medical advice or delay seeking it because of something you have read on this website.
Gambling:
As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman, and Sikkim, prohibit gambling. Land-based casinos are legalized in Goa and Daman under the Goa, Daman and Diu Public Gambling Act 1976. In Sikkim, land-based casinos, online gambling, and e-gaming (games of chance) are legalized under the Sikkim Online Gaming (Regulation) Rules 2009. Only some Indian states have legalized online/regular lotteries, subject to state laws. Refer to the legalities here. Horse racing and betting on horse racing, including online betting, is permitted only in licensed premises in select states. Refer to the 1996 Supreme Court judgment for more information.
This article does not endorse or express the views of Qrius and/or its staff.
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