Social Casino Gaming 2012 C a sual G ame s Sec tor Rep or t
What are social casino games? What makes social casino games special? 1. Easy transition from computer to mobile gaming: offering the same user experience as video slots and video poker. 2. Familiar game mechanics lead to short learning curve and easy adoption for social gamers. 3. Sub-genres poker, casino, and slots generate 1.6 to 2x the ARPPU of the overall social category. 4. Social casino games also thrive in key markets where real-money gambling is legal.
Social casino games are: Games that recreate popular casino games like poker, slots, table games, and bingo on a social platform.
800
700
0
0
30% May 2010 Jun 2010 Jul 2010 Aug 2010 Sep 2010 Oct 2010 Nov 2010 Dec 2010 Jan 2011 Feb 2011 Mar 2011 Apr 2011 May 2011 Jun 2011 Jul 2011 Aug 2011 Sep 2011 Oct 2011 Nov 2011 Dec 2011 Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Jul 2012 Aug 2012
Fast growth of social casino segment drives social games growth.
May 2010 Jun 2010 Jul 2010 Aug 2010 Sep 2010 Oct 2010 Nov 2010 Dec 2010 Jan 2011 Feb 2011 Mar 2011 Apr 2011 May 2011 Jun 2011 Jul 2011 Aug 2011 Sep 2011 Oct 2011 Nov 2011 Dec 2011 Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Jul 2012 Aug 2012
Dec 2011 Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Jul 2012 Aug 2012 Dec 2011 Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Jul 2012 Aug 2012
300
200
100
Growth of the Genre 0 Asia
Europe
North America
Latin America
social casino Rest of the Games World
social casino audience vs. social gaming audience—worldwide (MUU) (millions)
social casino games social games
600
500
400
300
200
100
social casino percentage
30% 8
7
25% 6
20% 5
4
15% 3
10%
2
5%
1
Social Casino Gaming Report 2012 Ca s ua l G a m e s A s s o c i at i o n
xample oubleDown Casino exas HoldEm Poker otomania
The Players
overall social games
How does the average social casino gamer compare to the average social gamer?
Female ages
35-44
Demographics (Worldwide) casino games
average age
Demographics (Worldwide) Publisher Average Age IGT/DoubleDown Interactive Casino Games 37.8 years old Zynga Poker Games 27.3 years old Caesar’s/Playtika Slots Games 40.9 years old
Male 44.1% 71.0% 39.6%
Overall Social Games 35 to 44 years old
Female 55.9% 29.0% 60.3%
Example DoubleDown Casino Texas HoldEm Poker Slotomania
Publisher IGT/DoubleDown Interactive Zynga Caesar’s/Playtika
Female
37.8 Demographics (Worldwide) Average Age 37.8 years old 27.3 years old 40.9 years old
Casino Games Poker Games Slots Games
Overall Social Games 35 to 44 years old
Male 44.1% 71.0% 39.6%
Female 55.9% 29.0% 60.3%
Example DoubleDown Casino Texas HoldEm Poker Slotomania
poker games
average age
Demographics (Worldwide) Publisher Average Age IGT/DoubleDown Interactive Casino Games 37.8 years old Zynga Poker Games 27.3 years old Caesar’s/Playtika Slots Games 40.9 years old
Female
Overall Social Games 35 to 44 years old
Male 44.1% 71.0% 39.6%
Female 55.9% 29.0% 60.3%
Example DoubleDown Casino Texas HoldEm Poker Slotomania
Publisher IGT/DoubleDown Interactive Zynga Caesar’s/Playtika
Female
slots games
27.3 Demographics (Worldwide) Average Age 37.8 years old 27.3 years old 40.9 years old
Casino Games Poker Games Slots Games
Overall Social Games 35 to 44 years old
Male 44.1% 71.0% 39.6%
Female 55.9% 29.0% 60.3%
Example DoubleDown Casino Texas HoldEm Poker Slotomania
average age
Demographics (Worldwide) Publisher Average Age IGT/DoubleDown Interactive Casino Games 37.8 years old Zynga Poker Games 27.3 years old Caesar’s/Playtika Slots Games 40.9 years old
Female
Overall Social Games 35 to 44 years old
Male 44.1% 71.0% 39.6%
Female 55.9% 29.0% 60.3%
Example DoubleDown Casino Texas HoldEm Poker Slotomania
Publisher IGT/DoubleDown Interactive Zynga Caesar’s/Playtika
40.9
Female
44.1%
55.9%
71.0%
29.0%
39.6%
60.4%
Male
Female
Male
Female
Male
Female
example
example
DoubleDown Casino
Texas HoldEm Poker
publisher
publisher
IGT/DoubleDown Interactive
Zynga
Audience Size example Audience Size Worldwide 2012E 183.3 2013E 209.9 publisher 2014E 234.8 2015E 246.2
Slotomania Caesars/Playtika
Audience Size U.S.
(millions) Casino and Slots skew slightly older than overall social games, 2012E 25.85 but Poker is a young, male-dominated audience. 2013E 27.09 2014E 27.40 2015E 27.92
audience size (millions)
worldwide audience size (millions)
40
U.S.
35
250
200
30
U.K.
25
Australia
20 15
South Africa
10
Audience Size Australia (millions) 150 2012E 2.15 2013E 2.68 2014E 2.91 2015E 2.95 100 Audience Size South Africa (millions) 50 2012E 0.91 2013E 1.41 2014E 1.74 2015E 1.90
5 0
Audience Size U.K. (millions) 2012E 6.13 2013E 6.96 2014E 7.14 2015E 7.08
2012e
2013e
2014e
2015e
0
2012e 2013e 2014e 2015e
30
The Payers
social casino Games
How Social Casino Games are Monetized The U.S. is the largest market for social casino gaming even though real-money gambling is not legal. Instead, the U.S. monetizes by selling in-game currency that allows players enter tournaments, increase chances of winning, and extend gameplay. U.S. ARPPU august 2012
$78.42
$38.56 $10.18 Slots
Overall Social Gaming
Social casino games average a conversion rate between 2% and 3.5% in the U.S. depending on the sub-genre.
Mobile Gaming
Revenue Models: 1. Slots Players purchase coins for additional and higher stakes spins. Slotomania by Playtika encourages players to risk more coins per spin by offering extra experience points for higher wagers. 2. P oker As a skill-based game, poker requires differentiation to accommodate all players. Texas HoldEm Poker by Zynga has several tables organized by skill level and stakes. Serious players by chips to play with other serious players without taking the time to earn money in the game, while less skilled players buy chips to extend game play. 3. Bingo In Bingo Bash by BitRhymes, players earn experience for each game they play, which unlocks bingo rooms, collectible items, and the ability to participate in tournaments. Players can also purchase game coins to buy in-game items like power ups and custom daubers.
Social Casino Gaming Report 2012  Ca s ua l G a m e s A s s o c i at i o n
Notable Developers and Publishers Zynga
Caesars/playtika
> Increased social casino gaming offerings this year with the releases of Zynga Slingo and Zynga Bingo. > Developing real-money poker game for release in the first half of 2013. > Currently owns three of the top four most popular social casino games on Facebook with Zynga Slingo, Texas HoldEm Poker, and Zynga Bingo. > Mobile social casino games Poker by Zynga and Slots by Zynga.
> Acquired by Caesars Interactive Entertainment in May 2011. > Known for its slots game Slotomania, which grossed over $13MM worldwide revenue in August on Facebook alone. > Slotomania reached #1 top grossing app on iPhone, iPad and Android.
IGT/DoubleDown Interactive > Acquired by IGT in January 2012. > Popular Facebook offering, DoubleDown Casino, generates $10.3MM worldwide revenue in August. > DoubleDown Slots on iOS, a top 25 grossing app.
wms industries > T eamed with Large Animal Games to release Lucky Cruise Slots in January 2012. > L aunched subsidy Williams Interactive to focus on the social casino market in June 2012. >W illiams Interactive independently released Jackpot Party Casino on Facebook and has 2MM monthly active users today. >R uns Jackpot Party Casino, a real-money online casino launched in 2010 in the UK.
Notable Developers and Publishers Zynga
http://company.zynga.com/
IGT/DoubleDown Interactive
http://doubledowninteractive.com/
Caesars/Playtika
http://www.playtika.com
WMS Industries
http://www.williamsinteractive.com/
social Social casino GAMES Games
Revenue
2012e 2013e 2014e 2015e
revenues by individual market (billions) $1.2 $1.2 $1.0 $1.0 $0.8 $0.8 $0.6 $0.6 $0.4 $0.4 $0.2 $0.2 0
Asia
0
Europe
Asia Europe $3.0 revenues by region (billions)
North America North America
Latin America Latin America
Rest of the World Rest of the World
$3.0 $2.5 $2.5 $2.0 $2.0 $1.5 $1.5 $1.0 $1.0 $0.5 $0.5 0 Worldwide
US
0 Worldwide
US
Social Casino Gaming Report 2012  Ca s ua l G a m e s A s s o c i at i o n
Key Terminology ARPPU
Poker Games
Average Revenue Per Paying User.
Social casino sub-genre that offers the popular card game poker in its many variations (e.g. Poker by Zynga).
ARPU Average Revenue per User.
Real-Money Game
Casino Games
Social casino game that wagers actual currency and gives the player the possibility of cashing out, similar to online gambling.
Social casino sub-genre that recreates the casino experience, including many casino games in one (e.g. DoubleDown Casino).
Conversion Rate The number or percentage of users that have shifted from nonpaying to a paying status.
Daily Active Users (DAU) The number of unique users that have used an application at least once over the course of a day.
Monthly Active Users (MAU) The number of unique users that have used an application at least once over the course of a month.
Slots Games Social casino sub-genre using a direct translation of video slots adapted for social gaming platforms (e.g. Slotomania).
Social Casino Games Games that simulate a casino experience like poker, slots, table games, and bingo. These games take place on a social platform like Facebook or a mobile device.
Other Table Card Games A sub-genre of other table card games within social casino gaming, such as baccarat and blackjack (e.g. Blackjack Madness).
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