Social casinos are a subset of the larger casino industry and have grown in popularity recently, all thanks to the synergy between iGaming entertainment and digital technology. A recent report by Market Research Intellect revealed that the social casino industry is expected to grow at a CAGR of 8.8% from 2024 to 2031.
Here are a few factors contributing to this growth –
- Growing smartphone penetration and access to fast internet.
- Incorporating advanced social features in casino games that improved user engagement and fostered a sense of community.
- Integration of cutting-edge technology like AR and VR.
- A growing number of strategic alliances between social channels and iGaming operators.
- Increasing acceptance of online gaming and responsible gambling.
- Regulatory relaxations for social casinos in various countries.
This post shares interesting insights into the social casino domain and how iGaming operators and affiliate managers can leverage it to boost their revenue.
Social Casino: What Is it?
They are largely free-to-play online games that offer exceptional iGaming experiences to players without offering real cash payouts. Players engage with these games on social platforms and deal with virtual in-app currency. Thus, they can experience the thrill of gambling without losing real money.
They imitate physical casino games (slot machines or blackjack) or introduce a new twist to the play. Social casino games foster high engagement and a sense of community among gamers.
Moreover, they are a gateway between real-money and no-money casinos, allowing operators to gain access to a new set of players. Hence, social casinos allow operators to reach and engage with new demographics, re-engage lost patrons, and convert players to real money players.
Types of Social Casinos
Here are the sub-verticals in the social casino industry –
- Poker
- Blackjack
- Slot machines
- Bingo
- Casino table games
- Scratch-and-win lottery tickets
- Roulette
- Multiplayer card games
Regardless of the type, social casino games have the following three striking features –
- Free Coins: These games offer currency in the form of free coins, daily coin bonuses, bi-hourly coin bonuses, level-up coin bonuses, and more.
- Casino Games: They offer identical casino games for the social audience like the ones mentioned above.
- Social Features: They offer interactive features that allow players to build a social casino community where they invite friends, gift coins, or request gifts when they are running low on coins.
Since all this is on social platforms, operators can boost their brand awareness and recognition by advertising on social casinos. Thus, they can reach potential customers who are interested in casual gaming but could be converted to real-money iGaming.
The Evolution of Social Casinos
It all started way back in the early 2000s with the boom in social channels like VK and Facebook. Games like Farmville and Mafia Wars engaged millions of people who would invite their friends, send gifts, or showcase their progress on social media.
The late 2000s witnessed the emergence of social casinos like Zynga Poker and Slotomania that offered free-to-play casino games using virtual currencies. Their success encouraged platforms to experiment with sophisticated social features to add complexity and excitement to games.
The smartphone boom in the 2010s further accelerated the social casino growth, allowing players to enjoy their games anytime and anywhere. This convenience coupled with immersive experiences and advanced features like live social interactions and real-time multiplayer games set the stage for social casinos.
Social Casino Opportunities for Affiliate Managers and iGaming Operators
If leveraged well, social casinos hold huge opportunities for iGaming operators. The steadily growing market, technological advancements, and conducive customer behavior are shaping this domain well.
Let’s look at how operators and affiliate managers can benefit by venturing into the world of social casinos.
1. Expand the iGaming Portfolio
As mentioned earlier, social casinos have a low barrier to entry. Thus, iGaming operators looking to improve their reach to newer audiences can advertise on social casinos to cater to casual players who can be converted to real-money players.
Data suggests that the average conversion rate of a free player to a real-money player is about 2%. The number seems low primarily because of the massive base of non-paying social players. However, 62% of gamers who’ve made their first payment are likely to go for the second.
Thus, iGaming operators can drive engagement and grow their customer base through themed, in-game events, tournaments, the launch of new modes, and more. This builds a new revenue stream and an opportunity to enhance brand affinity and recognition.
2. Increase Penetration in Regulated Markets
Social casinos present a low-risk style of iGaming that doesn’t involve real-money betting. Hence, they have relaxed regulations in most parts of the world.
This allows iGaming operators to cultivate new customer relationships in a social environment where real-money gaming isn’t accessible. The engaging nature of social channels is a big win for operators, aiding them in their long-term customer acquisition and retention efforts.
3. Monetize Social Casino Opportunities
Operators can monetize social casinos through in-app purchases, advertising, special events, promotions, and subscription services.
For instance, through in-app purchases, you can encourage players to buy a virtual currency that allows them to continue playing, unlock special features, and enhance their experience.
Similarly, subscriptions ensure a steady stream of revenue and increased retention by offering gamers benefits and special features like daily virtual currency, customized items, and ad-free experiences.
4. Goldmine of Data
The micro-transactions on social casino platforms provide a wealth of data for iGaming operators and affiliate managers. For instance, you can learn a lot about player behavior, preferences, and habits and use it when they convert to real-money casinos.
Further, social casinos by nature can provide you with a growing network of player lists and potential partnerships.
By using a feature-rich iGaming affiliate software, operators and affiliate managers can make data-driven decisions. Affnook helps in monitoring trends whether it is related to target profiling and cross-promotion opportunities or accurate casino affiliate campaign management.
What’s more? Affnook ensures easy and effective management of accounts, payment service providers, game vendors, reporting, and analytics. You receive comprehensive and real-time reports on payments, bets, bonuses, and more.
The platform is powered by advanced fraud detection to shield your iGaming affiliate budget from deceptive clicks, fake conversions, bot traffic, and inflated numbers.
We recently got awarded the AffPapa iGaming Award 2024 for exceptional client satisfaction.
Now that we’ve understood how social casino contributes to the iGaming ecosystem through a no-risk style of gaming, let’s delve deeper into the regulatory scenario.
The Licensing Scene in Social Casino
One of the most significant advantages of social casinos is their regulatory flexibility compared to traditional gambling. In most jurisdictions, social casinos do not need an iGaming license because it doesn’t involve money wagering.
Social casinos have a distinct legal framework compared to real-money casinos, thereby reducing the regulatory burden on operators. However, iGaming operators are still expected to represent it in the right way to ensure responsible gambling and prevent addiction.
The entry barriers for this domain are low. Yet, it is important to stay informed about local regulations. A few jurisdictions impose regulations and need specific disclosures to ensure transparency, responsible gaming and player protection.
In most states of India, no license is needed to engage in free-to-play social casino games. However, these games are subject to the due diligence requirements of the Online Gaming Intermediary (OGI).
In Australia, most operators offer modified versions of their online casinos — minus deposits and withdrawals, thus mimicking the legal social casino gaming experience. This allows them to legally generate revenues in a closed market.
In the UK, the United Kingdom Gambling Commission (UKGC) concluded that social gaming does not pose any significant societal risk. Hence, social casinos are not subject to regulations, provided operators demonstrate social responsibility.
Current Trends
The social casino industry continues to evolve with several iGaming trends influencing it. Let’s look at the top trends that have made this domain more engaging and immersive than ever before.
1. Growing Visual and Auditory Sophistication in iGaming Designs
Today, social casinos boast advanced high-definition graphics, designs, and sound effects that take the iGaming experience to the next level. This trend of enhanced visual and auditory sophistication is expected to continue in the coming years.
AI-assisted gaming is taking the social casino world by storm. The technology is being leveraged to develop intelligent virtual characters and enhance game graphics. AI-powered game engines are adapting their gameplay based on player behavior, thus creating dynamic and captivating experiences.
SpinArena.net, Europe’s largest social casino, is already leveraging the technology to offer AI-assisted game selection. Thus, titles are suggested to players based on their profile and behavior.
2. Introduction of Innovative Game Types
Social casinos are investing in top-notch iGaming development to offer games that go beyond traditional slots or table games. Their development teams are exploring AR and VR to introduce unique themes, narratives, and mechanics.
Going forward, such innovations will continue to surface, allowing iGaming operators to attract new players and retain existing ones.
3. Improved Integration of Social Functionalities
Advanced social functionalities that offer new ways to connect with and engage players are the foundation of social casinos. Casino platforms leveraging social media features that allow players to connect with friends, share achievements, and compete in tournaments will continue to be in demand.
Similarly, features like chat rooms, virtual gifts, and leaderboards will continue to play a big role in fostering a sense of community and creating a lively gaming atmosphere.
4. Increased Focus on Responsible iGaming Practices
The prevailing regulations have encouraged iGaming operators to uphold responsible iGaming practices to mitigate the harms caused by gambling and betting.
Moreover, operators across the globe have built their business philosophies to achieve a balance between responsible gambling advertising and promotional marketing.
Summing Up
Social casinos offer a huge opportunity for iGaming operators to appeal to a wider base of casual players who have the potential to convert into real-money players.
By staying attuned to the trends shared here, and using the information to your advantage, you can gain a competitive advantage in the vast iGaming market.
Affnook is a reliable affiliate marketing software that offers in-depth analytics and robust security features. The platform supports essential integrations, allowing you to focus on offering a seamless experience for your players. Take a live tour of how Affnook can be your partner when tracking performance, automating workflows, and deterring fraud. Talk to our team now to begin your success journey!
