Social Casino Market Records 18% Increase Year-on-Year For Q1 2018
The social casino or free-to-play market has often been cited as acting like a Trojan horse by enticing players to switch over to real money gaming. The argument that free-to-ply casino games that look and feel identical to the real money version has recently come under fire in certain states like Washington.
The major social casino companies are well aware that their unhindered ride until now may well go down the road the daily fantasy sport market suffered. DraftKings and FanDuel reached peaks of success without attracting the attention of lawmakers until a few years ago when they were challenged by the like of New York AG Eric Schneiderman. After huge cash payouts and new regulations in many states the DFS industry has had to adapt and is now operating in a much more regulated and scrutinized manner.
Social casino companies like Big Fish Games, Playtika, DoubleDown and High 5 Games have started to feel the pressure in Washington where they are been sued for violating the state gambling laws.
It remains to be seen what will transpire in this tricky market but it is worth noting that the revenues generated by games with virtual money are in the billions.
In a report released by Southern California based Eilers & Krejcik, it was reported that social casino gaming was up 18 percent for the first quarter of 2018 to $1.27 billion. The main reason for this surge is an increase in mobile devices with Playtika dominating the market with a 25 percent share.
Overall the social casino market has grown 20 percent in the last 12 months and is worth around $4.72 billion annually. The revenue from mobile devices has increased 25 percent year-on-year.
Playtika who were acquired by Shanghai Giant Technologies recorded revenues of $340 million for Q1 and had revenues of over $1.26 billion for the last 12 months.
Second place went to Big Fish Games who were acquired by Aristocrat Technologies with revenues of $155.7 m for the Quarter and $568.6 million for the 12 months ending March.
Scientific Games took 4th place with $97.7 m in revenues for the quarter which represents a 7.7 percent market share.