Social casino games have revolutionized the online gambling industry, and it seems like they are about to do the same with the video game industry. For those who don’t know, social casinos offer a free-to-play model where players can enjoy their favorite casino games without any risk of losing money.
This is a revolutionary concept that shifts the focus from money towards entertainment, which is unseen in the world of gambling.
However, the free-to-play model doesn’t really make sense right? After all, social casinos and the developers need some kind of incentive to keep them going and since they are not earning money from casino games, how are they still running?
Well, social casinos bring a few new concepts of monetization to the world of online gambling. A social casino can earn money in several different ways.
First, we have the in-game purchases, where players can buy anything from digital collectibles to virtual currency top-ups. Then, we have promotional deals and collaborations with other brands. And lastly, we have paid ads that are featured while you play your favorite casino games, and they earn money.
So, how can social casino elements change the video game market in terms of monetizing their content?
What Are Social Casino Elements?
In order to understand how monetization strategies from social casinos can be applied to other games, we need to dive deeper and find out their main features. As we mentioned before, social casinos are designed to mimic the traditional casino experience without the use of real money.
Instead, players use virtual currency, which can be purchased with real money or earned through gameplay.
This is a model that leverages the excitement of casino games, without the financial risk, which is why it is mostly popular among casual gamers.
Let’s take billionaire-casino.com as an example. Once you sign up, you are given a certain amount of free virtual coins that you can use to play your favorite casino games. There are daily challenges that always give you more free virtual coins, but you can also buy them with real money through their in-game store.
But what are the main features of a social casino? What drives players most and can be used to monetize games?
Examples of Social Casino Features
Virtual Currency
This is the main feature of social casino games, and it is oddly their main monetization tool. Even though social casino games can be played for free, most people still choose to buy virtual coins, although they won’t get a chance to win anything.
Daily Bonuses
We’ve already seen this feature in other games, but it is still worth mentioning. Social casinos have daily rewards for people who are playing the games frequently, which increases their potential profits.
In-App Purchases
One of the main sources of money for social casinos is the in-app purchases. People can spend money on virtual goods and buy skins or clothes to change their aesthetics, buy special gifts that can be handed out to people, unlock certain areas, or enter special tournaments.
Basically, most of the digital features in social casino games can be purchased with real money.
Why Incorporate Social Casino Elements in Console Games?
Increased Revenue Streams
Integrating social casino elements offers multiple revenue streams:
In-App Purchases: A significant revenue driver, with players buying virtual currency or special items.
Advertising: Rewarded ads can give players bonuses for watching commercials, blending monetization with engagement.
Subscriptions: Battle passes or VIP memberships offer exclusive perks for a recurring fee.
Enhanced Player Engagement
Social casino elements can significantly boost player engagement. For instance, daily bonuses and special events encourage players to return regularly, increasing their lifetime value.
This model is particularly effective; games like “PUBG Mobile” saw a 365% spending increase after introducing their Royale Pass.
Broader Audience Appeal
Social casino games appeal to a wide demographic, including players who may not traditionally engage with console games. By integrating these elements, developers can attract a broader audience, from casual gamers to gambling enthusiasts.
Why Hybrid Monetization Is the New Trend
Hybrid monetization combines in-app purchases with in-game ads, maximizing revenue while catering to both spenders and non-spenders. During the COVID-19 pandemic, this model proved resilient, allowing games to thrive despite economic uncertainties.
Market Growth and Potential
The global gaming industry is booming, projected to reach $280 billion by 2024. Social casino games play a crucial role in this growth.
For instance, the top social casino apps in the U.S. generated over $1 billion in 2020 alone.
Integrating Virtual Currency
To successfully integrate social casino elements, start with a robust virtual currency system. Ensure players can earn currency through gameplay, incentivizing engagement without immediate monetary investment. Offering purchasing options for impatient or dedicated players can significantly boost revenue.
Leveraging Leaderboards and Tournaments
Competitive elements like leaderboards and tournaments keep players invested. Regularly updating these features with new challenges and rewards can maintain high engagement levels. Consider seasonal events or limited-time challenges to create a sense of urgency and excitement.
Utilizing Rewarded Ads
Rewarded ads are a win-win; players get in-game bonuses, and developers earn ad revenue. These ads should be seamlessly integrated into the game, offering meaningful rewards that enhance the gameplay experience without feeling intrusive.
Balancing Monetization and Player Experience
Excessive monetization can have a negative effect on players. We wouldn’t want to create a game where every single element is monetized. It will ruin the player experience. It’s crucial to find a balance where monetization enhances rather than detracts from the gaming experience. Regularly solicit player feedback and adjust strategies accordingly.
