Startup Bets Big On Social Casino Games
Ever since Las Vegas rose up from the Nevada desert in 1905, and the mobs ruled gambling in the United States for decades, the gaming industry has been changing with the times. Today, two corporations own the great majority of Las Vegas casinos, Caesars and MGM.
However, in recent years, the gaming landscape is starting to turn entrepreneurial. Online social gaming has soared in popularity, especially among Millennials. With an estimated 53 percent of all internet activity being done from smartphones, the age of the Pay By Mobile Casino is here.
Social casinos merge aspects from social media and social gaming with the games known in the casino industry, including blackjack, poker, roulette, and craps. The objective is to fully engage players by having them compete against each other. For example, leaderboards are used to display which players are doing the best. Online casino sites enable players to play from where they are. They allow people the option to play for free or to pay via their smartphone, without the high risk associated with playing at the same level in a traditional physical casino.
There is big money to be made through a Pay By Mobile Casino, and the industry is growing fast and furiously. The research firm of Eilers & Krejcik estimated that the social casino game market reached $976 million in 2017, and shows no signs of slowing. Early companies competing in the social online gaming market include IGT, Scientific Games, Playtika, Zynga and Aristocrat.
While start-up magazines and venture companies are touting the money to be made from launching an online social casino, they are also cautioning entrepreneurs about what’s really required. Any successful launch is a process; it doesn’t happen overnight. There are two main ways to start an online casino: white label or on your own.
To “white label” your casino site means that you use a software provider that has already set up the casino games, licenses, and payment methods online. You just create a brand and use their system. The catch is that you have to share your profits with them. If you want to keep all of the profits, you’ll, of course, have more upfront costs and will need to handle all of the following steps on your own:
– Hire a software programming company, like Micro Gaming, Playtech or Net Entertainment.
– Get a license from the country where you live to operate your online casino.
– Decide on the methods of payment you will accept.
– Develop and implement a strong marketing plan to promote your casino.
– Have professionals help you make sure that your online casino is secure.
There are quite a few success stories of entrepreneurs who have hit the jackpot, so to speak! Casumo, which launched in 2012, has done quite well. They offer an “adventure” where players can travel to different locations on Earth and off, getting rewards for moving up to different levels as they play. Betfair and Bet365 are two other successful startups in this exciting new field.
Of course, the corporate casinos aren’t abdicating their thrones so easily. For instance, in May 2017, MGM signed a deal with GVC Holdings PLC to create real-money online poker play under the playMGM brand. Entrepreneurs launching their own social online casinos should expect to compete alongside the gaming giants, so building a niche and a loyal fan base is absolutely critical from Day One.