social casino gaming: casual games sector report 2012

Social Casino Gaming 2012 C a s u a l G a me s s e C t o r r e p o r t

What are social casino games?

social casino games are: Games that recreate popular casino games like poker, slots, table games, and bingo on a social platform.

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 Gaming Report 2012 Casual Games assoCiation

soCial Casino GamesGrowth of the Genre

Fast growth of social casino segment drives social games growth.

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social casino audience vs. social gaming audience—worldwide (MUU) (millions)

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social casino gamessocial games

the players overall social games

Female ages 35-44

How does the average social casino gamer compare to the average social gamer?

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Audience Size Audience Size Worldwide 2012E 183.32013E 209.92014E 234.82015E 246.2 Audience Size U.S. (millions) 2012E 25.852013E 27.092014E 27.402015E 27.92 Audience Size U.K. (millions) 2012E 6.13 2013E 6.96 2014E 7.14 2015E 7.08 Audience Size Australia (millions) 2012E 2.152013E 2.682014E 2.912015E 2.95 Audience Size South Africa (millions) 2012E 0.91 2013E 1.41 2014E 1.74 2015E 1.90

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Audience Size Audience Size Worldwide 2012E 183.32013E 209.92014E 234.82015E 246.2 Audience Size U.S. (millions) 2012E 25.852013E 27.092014E 27.402015E 27.92 Audience Size U.K. (millions) 2012E 6.13 2013E 6.96 2014E 7.14 2015E 7.08 Audience Size Australia (millions) 2012E 2.152013E 2.682014E 2.912015E 2.95 Audience Size South Africa (millions) 2012E 0.91 2013E 1.41 2014E 1.74 2015E 1.90

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audience size (millions)

exampleDoubleDown Casino publisherIGT/DoubleDown Interactive

casino games poker games

Demographics (Worldwide)

exampleTexas HoldEm Poker publisher Zynga

average age 37.8 average age 27.3slots games

exampleSlotomania publisherCaesars/Playtika

average age 40.9

Casino and Slots skew slightly older than overall social games, but Poker is a young, male-dominated audience.

worldwide audience size (millions)

Demographics (Worldwide) Average Age Male Female Example Publisher

Casino Games 37.8 years old 44.1% 55.9% DoubleDown Casino IGT/DoubleDown InteractivePoker Games 27.3 years old 71.0% 29.0% Texas HoldEm Poker ZyngaSlots Games 40.9 years old 39.6% 60.3% Slotomania Caesar’s/Playtika

Overall Social Games 35 to 44 years old Female

Female55.9%




Male44.1%




Female29.0%




Male71.0%




Female60.4%




Male39.6%


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. Poker 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.

the payers How Social Casino Games are Monetized

Social casino games average a conversion rate between 2% and 3.5% in the U.S. depending on the sub-genre.

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

slots overall social Gaming

mobile Gaming

$10.18

$38.56

$78.42

soCial Casino Games

notable Developers and publishers

ZynGa

> 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.

CaeSaRS/Playtika

> 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.

Zynga http://company.zynga.com/

IGT/DoubleDown Interactive http://doubledowninteractive.com/

Caesars/Playtika http://www.playtika.com

WMS Industries http://www.williamsinteractive.com/

Notable Developers and Publishers

WMS inDuStRieS

> Teamed with Large Animal Games to release Lucky Cruise Slots in January 2012.

> Launched subsidy Williams Interactive to focus on the social casino market in June 2012.

> Williams Interactive independently released Jackpot Party Casino on Facebook and has 2MM monthly active users today.

> Runs Jackpot Party Casino, a real-money online casino launched in 2010 in the UK.


revenue soCial Games

revenues by region (billions)

revenues by individual market (billions)

2015e2014e2013e2012e

Social Casino Revenues Revenues - Worldwide ($, millions) 2012E 2013E 2014E 2015ETOTAL $1,704.26 $2,068.63 $2,416.83 $2,617.98 Revenues - By Region ($, millions) 2012E 2013E 2014E 2015EAsia $311.40 $375.20 $502.78 $569.40 Europe $446.38 $531.19 $594.93 $630.63 North America $659.77 $816.11 $947.75 $1,026.95 Latin America $180.71 $212.74 $227.69 $237.69 Rest of World $106.00 $133.39 $143.67 $153.31 TOTAL $1,704.26 $2,068.63 $2,416.83 $2,617.98 Revenues - Individual Markets ($, millions) 2012E 2013E 2014E 2015EUS $626.78 $775.33 $900.39 $972.42

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Social Casino Revenues Revenues - Worldwide ($, millions) 2012E 2013E 2014E 2015ETOTAL $1,704.26 $2,068.63 $2,416.83 $2,617.98 Revenues - By Region ($, millions) 2012E 2013E 2014E 2015EAsia $311.40 $375.20 $502.78 $569.40 Europe $446.38 $531.19 $594.93 $630.63 North America $659.77 $816.11 $947.75 $1,026.95 Latin America $180.71 $212.74 $227.69 $237.69 Rest of World $106.00 $133.39 $143.67 $153.31 TOTAL $1,704.26 $2,068.63 $2,416.83 $2,617.98 Revenues - Individual Markets ($, millions) 2012E 2013E 2014E 2015EUS $626.78 $775.33 $900.39 $972.42

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soCial Casino Games

Key terminologyarppu Average Revenue Per Paying User.

arpu Average Revenue per User.

Casino Games 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.

poKer Games Social casino sub-genre that offers the popular card game poker in its many variations (e.g. Poker by Zynga).

real-money Game Social casino game that wagers actual currency and gives the player the possibility of cashing out, similar to online gambling.

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).

about the Casual Games assoCiation

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social casino gaming: casual games sector report 2012

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