Presentation on theme: "How To Survive The Social Casino Gold Rush. °July 2011, London – founded by 3 ex EA/Playfish execs 60 staff today Top-15 social casino company in revenue."— Presentation transcript:
°July 2011, London – founded by 3 ex EA/Playfish execs 60 staff today Top-15 social casino company in revenue and audience Raised $16.8M - last round ($14M) Dec-13 led by Endemol Key product: Mirrorball Slots (Facebook canvas, iOS and Android) Founding member of ISGA (International Social Games Association)
Social Casino today: a look at the market, trends & facts.
May-14: Top 10 social casino companies have 70% market share (revenue). (Source: Eilers Research). Top 5 has 53% share. Top-10 has 70%+ market share 4
Consolidation Ongoing 2010: 888.com buys Mytopia for $48M 2010: Fremantle buys Ludia (undisc) 2011: Caesars buys Playtika (Slotomania) for $100M+ 2012: IGT buys Double Down Interactive for $500M 2012: RockYou buys Ryzing (bingo, undisc) 2012: Aristocrat buys Product Madness (undisc) 2012: Novomatics buys Cervo Media (undisc) 2012: WMS buys Phantom EFX for $20M 2013: Caesars buys Buffalo Studios for $90M 2013: Caesars buys EA Montréal studio (WSOP, undisc) 2014: Caesars buys Pacific Interactive (House of Fun) for $96M 2014: GSN buys Bash Gaming (Bingo Bash) for $160M 2014: Bally buys DragonPlay for $100M 2014: Imperus Technologies buys Diwip (Best Casino) for $100M 2014: Churchill Downs buys Big Fish for $885M 2015: Intertain buys Gamesys for $700M+ 2015: Novomatic buys AbZorba (undisc) $2.7B+ in the last 4 years
The March To Mobile No more audience growth on web (Fb canvas). Mobile > Web audience since mid-13.
Over 1,000 social casino apps across all platforms 25-30 social casino studios with over $10M annual revenues Audience remains relatively stable Slots/Casino: 20-25M addressable market Bingo: 12-15M Poker: 40-50M Saturated market
Slots category dominates social casino 8 Source: SuperData Research ‘Pure’ Slots account for 38% of social casino revenue and 32% of audience in total However, most of the ‘casino’ category revenue comes from Slots (e.g. DoubleDown generates 70%+ of revenue from Slots) Slots + Casino represents 76% of revenue and 55% of audience Bingo accounts for 13% of revenue and 14% of audience in the category
Rising user acquisition costs... In USA, Australia: CPI for social slots are $5+ (on iOS) That means absolute minimum product metrics required to pay back within 9 months are Retention: D1 35%+, D7 18%+, D30 8%+, month-on-month retention after D30 90%+ Monetization: ARPDAU $0.25
5 years of growth... And pain. 2010 2015 ‘Puppies and Rainbows’ $200 million market Good product = growth, success Lots of small studios Facebook canvas main platform ‘Happy days are over’ $3 billion market Very tough, saturated Large companies dominate Top-10 has 70%+ market share Rising production and marketing budgets Facebook canvas hit plateau, huge growth on mobile, tablets