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Social gambling, a minor genre within the broader iGaming industry, has notably increased in popularity over the past few years. Technological advancements, changing consumer preferences, and the growing demand for social interaction within digital spaces have all attributed to this increase. Join us as we explore the key elements driving the growth of social gambling, its benefits for operators, and why it has become an essential component of the iGaming scene.
What’s the difference between social casinos and social gambling? The lines between the two are slightly blurred, but there are some notable distinctions, and both genres sometimes cross over.
Social casinos mimic the experience of traditional casinos but operate using virtual credits without real-money betting. Virtual credits are coins or credits without any real monetary value, not cryptocurrency, NFTs, blockchain, or any other digital funds that could have real value. This distinction means some social casinos are accessible in markets where traditional real-money gambling might be restricted or not permitted.
In contrast, social gambling refers to iGaming brands that integrate social elements, including features such as tournaments, leaderboards, chat rooms, live chats, live streams, and team competitions. Social gambling enhances the communal aspect of the iGaming experience by letting players interact and socialise with each other while playing real-money games at online casinos.
Whether social casinos or social gambling are allowed in each location depends entirely on local licence requirements, regulatory requirements, and responsible gaming standards, which we will delve into in more detail later.
Several factors, including the global shift toward remote work and the increased use of digital platforms during the COVID-19 pandemic, have influenced the rise of social casinos and social gambling. With more people spending time at home and seeking social interaction online, social gambling provides a way to stay connected while enjoying a gaming experience.
While social casinos offer games that are free to try, they can still be highly profitable for operators. The primary revenue streams for these platforms are often via in-app purchases and in-app advertising. Players usually receive a limited amount of virtual credits to start with. Once these credits are exhausted, they may have to purchase additional credits with real money to continue playing, complete tasks, or wait for a certain amount of time to pass. This model is known as ‘freemium’, where the initial game is free, but additional features or extended gameplay require payment. It’s also a model in many non-casino-based game apps and console games. However, many markets do not permit social casinos due to the actual money purchases, which stop the game from being completely ‘free’.
In-app advertising is another significant revenue source for social casinos. Players are exposed to ads as they spend time on these platforms, which generate revenue for the operators. Some social casinos also offer rewarded ads, where players can watch a video or complete a task to earn additional virtual currency or rewards, further incentivising engagement. Again, this is another tactic employed by console and app games in general.
A notable trend in social gambling is the collaboration between iGaming operators and popular media franchises, sports teams, or influencers. These partnerships allow operators to create branded games that resonate with fans, driving engagement and increasing the brand's appeal. For instance, a slot game themed around a popular TV show or a poker game featuring a celebrity influencer can attract players who might not otherwise be interested in the game.
Social media platforms and live streaming services have also become integral to social gambling and social casinos. Players can share their achievements, stream their gameplay, and interact with others in real time.
However, iGaming operators must tread exceptionally carefully and uphold responsible gaming practices. While a themed slot based on a famous sports player or a game played by a big-name influencer and live-streamed to fans seems like an easy money maker, such endeavours are a regulatory minefield. Influencers and famous people have wide fan bases, often including minors. Anything that’s even remotely appealing to children is an absolute no. Also, operators can't monitor all the content these collaborators put out or share via their social media pages, especially live streams. Therefore, operators can never ensure everything published is compliant. The potential risk is far too high for reputable operators to consider, and players are less likely to spend their money if they think a brand is careless about safety. After all, if they’re careless about that, they must be careless about other things, such as security and data protection, right? The best practice for most operators is to avoid such collaborations altogether.
Social casino games range from traditional casino staples like slots and virtual poker to more creative offerings that blend casual gaming elements. These games are available across various platforms, including standalone apps. Offering a wide variety of games ensures that social casinos can cater to different player preferences, enhancing user retention.
These games often incorporate features like leaderboards, achievements, and missions, adding gamification layers and encouraging ongoing engagement. Players can usually win virtual chips to enjoy on other games.
iGaming brands are increasingly integrating social gambling elements into their content. Gamification features like tournaments, team competitions, and live chat options enhance the social experience, making it more appealing to a wider audience. For example, live dealer games have become popular because they replicate the social atmosphere of a physical casino, allowing players to interact with the dealer and other players.
Live Dealer Games: Traditional casino fans relish the immersive way live dealer games bring the heart of the action to the players’ doorsteps. It’s like being at their favourite local casino from the comfort of their own home.
Bingo: Reminiscent of the glory days of good old brick-and-mortar bingo halls, live chat allows bingo fans to enjoy a friendly conversation with fellow players in a relaxing virtual environment.
Live Game Shows: This newer style of live casino games mimics popular television game shows, which naturally lend themselves to social interaction. Players can often chat with each other and the host, becoming part of the game show experience.
Live Casino Tournaments: Players compete against each other in real time, with leaderboards and prizes adding a competitive edge. Combining gamification elements, community, and camaraderie creates an enjoyable experience that boosts engagement and retention.
Esports Betting: Social features are crucial here, as the community aspect of esports is a significant draw for fans. Esports is a rapidly growing sector that appeals to traditional gamers.
Fantasy and Free-to-Play (F2P) games are the ultimate tools for social interaction in iGaming. In these games, players create teams based on real-life athletes, clubs, and leagues. Games usually depend on their real-life equivalents' performance, resulting in them being highly engaging to sports enthusiasts. These games are popular in clubs, workplaces, and friendship groups. Fantasy games combine strategy, skill, and social engagement, appealing to broad demographics and those looking for a deeper connection to their favourite sports.
Offering fantasy sports can be a powerful way for iGaming operators to build a community, drive engagement, and cross-sell other gaming products. The social and competitive elements inherent in fantasy sports align perfectly with the broader trends in social gambling. For example, fantasy games have been making significant strides in Latam, with many operators providing at least one form of fantasy game to their users.
The demographics of social gambling are diverse, with a notable increase in female participation. While traditional gambling has often been male-dominated, with younger adults (aged 18-30) making up the highest number, social gambling’s emphasis on interaction and community has broadened its appeal.
According to data from platforms like SpinArena, many active players are over 30 years old. These players are often looking for entertainment and social connections outside of their busy lifestyles, making social gambling an attractive option. Moreover, these games' communal aspect allows players to socialise through in-game chat, shared achievements, or tournament participation. Source: Yogonet.
Social gambling is rising because it meets the modern player's desire for interaction, entertainment, and community. For iGaming operators, it presents an opportunity to engage a broader audience, increase user retention, and drive revenue through innovative monetisation strategies. As the industry continues to evolve, integrating social elements into gaming platforms will likely become even more critical, making social gambling a trend that’s here to stay.
Operators must ensure that social casinos and gambling elements adhere strictly to responsible gaming practices. It is crucial to avoid promoting or encouraging the participation of high-risk groups. Compliance with responsible gaming regulations, as stipulated by the specific gaming licence governing the operator’s business, is imperative to safeguard players' well-being and maintain the platform's integrity.
As a dedicated B2B service provider, WA.Technology upholds a strong culture of compliance, emphasising the importance of social responsibility and responsible gaming. We design our marketing practices to support our partners in adhering to the highest standards of ethical conduct, ensuring that all communications reflect our commitment to integrity, transparency, and the well-being of the gaming community. We promote safe and responsible gaming environments by providing products and services, prioritising regulatory compliance and responsible marketing practices.
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