Last month I learned that social casino revenue is almost $3 billion a year. I thought it was a lot but this is more than I would have ever expected. More specifically I learned that a good chunk of social casino revenue comes from MyVegas. MyVegas’ gross revenues are about $60 million!
(Eilers Research gaming analyst Adam) Krejcik said Eilers Research lists PlayStudios as the eighth largest publisher of social casino games worldwide with a run-rate to achieve more than $60 million in gross revenue this year. The revenue comes from customers buying tokens.
Overwhelmingly the people I know personally and online that play MyVegas view it as a free game. They take the daily free chip allotment and try to win prizes. It’s a fun way for some people to waste time. At the same time other people may not find the game worth their time after doing the math to see how much those prizes actually cost in time. Neither sides of the fence are wrong. It’s just preference.
It’s easy to see how MyVegas could make so much revenue just from chip sales even if only a small percentage of players ever spend a dollar. Chips don’t equal rewards. Chips just allow you to play the game. The chips allow you to earn loyalty points which you exchange for prizes.
If the players hits a cold streak while playing with a lot of chips at once those 3 million chips you purchased for $199 will be gone in a few minutes. If the player doesn’t earn the reward that they’re playing for it’s easy to dip back into the wallet, more likely a purse, to grab the credit card and buy more chips.
Just like real gambling $400 or $600 the player may win 2 nights at a hotel that would have cost $300 otherwise. Just like casino gambling who am I to mock someone else’s fun?
Is social gaming the future of mainstream gambling? Social casino revenue is growing rapidly. It may not be the future alone but it will be around for a while.