SOCIAL CASINO GAMING: A RAPIDLY GROWING NICHE

Published on August 9, 2013 in Industry News

Social gaming casinos are seeing a tremendous rise in terms of popularity, especially on Facebook, the world's largest social network. That's according to a recent study conducted by Kontagent, an analytics firm that performed an in-depth analysis of the social gaming sector.

According to Kontagent's findings, social casino games comprise the fastest-growing of the social gaming niche. Social casino games had a 23% market share of the social gaming industry as of June 2012; compare to a paltry 3% market share less than one year prior in October 2011. That's a dramatic increase of nearly 700% in just nine months.

With such a dramatic rise in popularity, many online casinos are investing in social casino gaming  ventures. Some major acquisitions include:

A 51% stake in game developer Playtika was purchased by Caesars Entertainment for an estimated $80-$90 million.

Bwin Party Digital Entertainment has invested more than $50 million in social gaming-related ventures and assets.

DoubleDown Interactive, a social casino gaming development firm, was purchased by International Game Technology (IGT) for a price tag of $500 million.

Due to the relative recentness of these acquisitions, there's little information available on how much profit these investors have seen. But if Facebook's stock performance is any indication, they're set to earn back those multi-million dollar investments in short order. On June 24, 2013 alone, Facebook creator Mark Zuckerberg's wealth soared by an incredible $3.8 billion thanks to the incredible performance of Facebook stocks. Those are profits from just one day of trading!

According to projections, one social casino game company, DoubleDown Interactive, had 1.4 million daily active users, with a $.25 figure per user. Assuming there's no drop in the third quarter of 2013, they stand to earn $127 million this year alone.

This $.25 per user formula was applied to the daily active user figures for Zynga Slots, which has about 110,000 daily active users. That translates into a $10 million dollar annual earnings figure.

The formula was also applied to Caesars Entertainment  acquisition Playtika's game Slotomania. Slotomania has approximately 2 million daily active users, so using the DoubleDown Interactive formula, they would generate more than $182 million annually.

In short, the social gaming trend is rapidly growing in terms of popularity, making it an extremely profitable niche for investors and lucky players alike!