Exploring Social Casino Games: Key Market Insights, Player Trends, and Industry Impact

The social casino market is worth over $8 billion, and many social casino games rank among the highest-grossing mobile titles in the world. It’s still a long way short of the $78 billion value placed on the online gambling industry, but it has come a long way in a short space of time and is the preferred way to play for many players.

But what are social casino games, why are they so hot right now, and why should real money casino operators care about social casinos?

What are social casino games?

Social casinos are designed to look, feel, and play like online casinos. The difference is that players wager virtual credits, as opposed to real money, and the games use various integrated social features like chat rooms, friend invites, challenge systems, and leaderboards.

So, what are social casino games? Well, for the most part, social casinos offer the same variety of games found in real money casinos. Realism is key, so developers focus on making these free-to-play games feel like the real thing. Slots, for example, use similar themes, sounds, animations, and features.

Differences in some social game RNGs

Under the hood, social casino slot games may look very different from real money games. Rather than using certified random number generators (RNG) to randomize every outcome, they focus more on engagement and entertainment and may tweak outcomes to encourage gameplay.

On the surface, however, it’s hard to differentiate the best social casino games from real money titles, with only the lack of a real cash payout differentiating the two. As they simulate gambling activities, social casinos may familiarize inexperienced players with concepts such as bankrolling, wagering, playing, and winning, thus preparing them for a real casino experience.

Impact on the gambling industry + market overview

While the market size of social casinos pales in comparison to real money gambling, the industry is still projected to surpass $13 billion by 2029. The projected growth of around 10% per year is similar to that of the gambling sector, and the influence of social casino games on gambling is clear.

Playing social casino games online may act as a gateway to real money gambling, with reports suggesting that social casino games increase real money betting among existing gamblers while encouraging novices to try cash games.

Players unfamiliar with online casinos may struggle with the concept of wagering real money. They haven’t played the games before and don’t know how concepts like RTPs and volatility work. By playing online social casino games, they gain the confidence they need to try the real thing.

Also, while this gaming vertical is generally billed as a risk-free and cash-free alternative to real money gambling, social casinos have numerous in-app purchases. If players lose more and need more of an in-app currency, they can either wait for their funds to regenerate, complete challenges, or buy more. Considering the social casino games market is worth over $8 billion, it’s fair to assume that many players choose the latter option.

In fact, while social casinos can make money from advertising and subscription options, in-app purchases are the most lucrative monetization model and account for 71% of the total market size.

Types of social casino games

Social casinos feature many of the same game categories found in real money casinos, including slot machines and card games like roulette and blackjack.

Many of these games are designed specifically for social casinos, with gameplay that focuses on engagement, monetization, and player retention via gamification (challenges, missions, leaderboards) and in-app purchases. However, some casino social games are the same ones seen in traditional casinos, potentially encouraging players away from social networking sites and social casino apps and toward real money casinos.

Casino slot games

Popular casino slot games with features like Hold and Win and Megaways™, a vertical led by apps like High 5 Casino and Slotomania. These social casino games tend to offer the biggest jackpots, and the engaging nature of slots means they often attract the largest in-app purchases.

Blackjack

Virtual and live variations of the popular card game, incorporating elements of strategy and patience. Seen on social casinos like Stake, which also offers real money games, and Big Fish Casino.

Roulette

The classic wheel-based game encourages social interaction, with many players active at once. Social casinos offer both live and virtual variations, with the former simulating both real-money live gambling and land-based casino gaming.

Poker

Zynga Poker leads the way in social casino poker, with variations of Texas Hold’em and Omaha. Although players can play poker freerolls on traditional poker networks, these social sites utilize more social elements (leaderboards, friend invites, and challenges) and are available in jurisdictions where online poker is outlawed.

Who + why plays social casino games?

Social casinos have a broad appeal. Traditionally, online casinos are dominated by younger (18-30) males, but a larger percentage of social casino gamers are female, and they come from a broad age range.

Most social casinos are available as downloadable apps, so the majority of players use smartphones and tablets, as opposed to desktops, and the association with social networking sites means many use them for entertainment and social interactions, as well as gaming.

Gaming behavior varies, though, and it seems that a large percentage use them as a gateway to real casino gambling. It’s a risk-free, accessible, and friendly environment, making it ideal for newcomers and low-stakes players who want to transition to a real-money gambling experience.

Some also see social casinos as a way to enjoy their favorite casino games in a more social environment, whether it’s to interact with other gamers, test the gameplay of a new release, or take a chance on some social casino leaderboards.

Social gaming developers use this knowledge to monetize their games, focusing efforts on in-app purchases and engagement. Casino developers can also use this information to capture a broader market, offering similar experiences to social casinos and helping players transition from playing with virtual credits to wagering real money.

Monetization model of social casino games

Social casinos effectively move from free-to-play to pay-to-play by offering in-app purchases and incentivizing players to buy more in-app currency. As noted above, they can generate profits through ads, but those purchases are their main source of income.

User acquisition may also be easier than it is for real money casinos, as they don’t have to worry about such strict regulations and can use organic advertising built into apps and social networks, such as friend invites.

It’s an effective monetization model that has seen social casino gaming grow into a multi-billion dollar industry, and it’s one that easily transitions to real money gambling, with the potential for operators to offer a hybrid version that promotes social interactions, encourages free-to-play gaming, but still offers real money slot machines and table games.

The role of social casino game developers and slot providers

The success of table and slot social casino games proves there’s a large market for social games, and this is something that iGaming developers can use to their advantage.

Where a social casino game developer has walked, a slot game provider can run.

Innovative studios like 1spin4win are already implementing social features into their games, incorporating elements from social casino games, but in a real-money casino environment. Not only do 1spin4win slots mimic the sort of themes and features that are popular throughout the social and real-money gambling sector, but they’re all available in free-play mode and support all devices and platforms.

What’s more, 1spin4win uses various promo tools to enhance engagement and encourage more people to join and stick around for the long haul.

So, while social casinos seem very different from their real money alternatives, these industries can learn a lot from one another.

Conclusion

Online social casino games are risk-free casino games that emulate real money versions using virtual credits. These games are part of an industry currently worth more than $8 billion, with healthy growth predicted for the next few years.

By learning from the social casino sector and incorporating similar interactivity, promotions, and player retention models, developers and operators alike could experience significant growth across key metrics such as player retention rate and customer lifetime value.

FAQs

What are social casino games?

Social casino games are variations of popular casino games (such as slot machines and blackjack) that use virtual credits in place of real money.

How do social casino games differ from real gambling?

Social games are risk-free. Players are given credits to spend and can buy more using in-app purchases, but it’s not a prerequisite, and they don’t need to risk money.

What is the estimated market size of social casino games?

The social casino games market size is around $8.15 billion, and is projected to surpass $15.6 billion by 2034.

What are the top social casino gaming companies?

Zynga, SciPlay, Playtika, and DoubleDown Interactive are some of the biggest names in the social casino games sector.

What are the best social casino games today?

It varies by demographic, but as with real casino gaming, slots seem to lead the way, followed by table games such as blackjack and roulette.

What is volatility in social casino slot games?

There is no typical volatility for social casino slot games. As with real money gambling, it varies by slot, although a social casino game developer may tweak the volatility.