Social Casino Gaming Continues Growth
By Brian Cullingworth May 26, 2017
JP Morgan study predicts 10 percent global growth in 2017
Social casino gaming still has considerable growth potential, a recent study by JP Morgan Securities has suggested, with the independent researcher predicting that 2016 global revenues of $3.8 billion are set to grow 10 percent in 2017 following increases in the number of daily active users and their spending power.
The study indicates that almost half of revenues last year were generated in Northern America, but notes that “international expansion could provide the next leg of growth as smartphone penetration increases”.
The JP Morgan report flags the $4.4 billion sale of Caesars Interactive Entertainment subsidiary Playtika to a Chinese consortium last year as the biggest yet in the sector, noting that the company commanded “roughly 60 percent” of global social casino games revenue.
Analysts Joe Greff, Daniel Politzer and Brandt Montour, who prepared the report, said that social casino players generally exhibit some of the most favourable characteristics across the social gaming spectrum, as they are some of the highest spending, most lucrative players within the space.
They estimate that the average social casino player spends the equivalent of approximately US$120 annually, an amount significantly in excess of the $87 recorded by the average player on other forms of social gaming.