Social Casino Demographics

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The share of U.S. adults who say they use certain online platforms or apps is statistically unchanged from where it stood in early 2018 despite a long stretch of controversies over privacy, fake news and censorship on social media, according to a new Pew Research Center survey conducted Jan. 8 to Feb. 7, 2019.

More broadly, the steady growth in adoption that social platforms have experienced in the United States over the past decade also appears to be slowing. The shares of adults who say they use Facebook, Pinterest, LinkedIn and Twitter are each largely the same as in 2016, with only Instagram showing an uptick in use during this time period. (There are no comparable 2016 phone survey data for YouTube, Snapchat, WhatsApp or Reddit.)

Facebook – which recently celebrated its 15th anniversary – remains one of the most widely used social media sites among adults in the U.S. Roughly seven-in-ten adults (69%) say they ever use the platform. (A separate 2018 Center survey showed Facebook use among U.S. teens had dropped in recent years.) YouTube is the only other online platform measured that matches Facebook's reach: 73% of adults report using the video sharing site. But certain online platforms, most notably Instagram and Snapchat, have an especially strong following among young adults.

The global casino gaming industry has witnessed a growth surge in the past couple of years, fuelled by the increase in the availability of gambling apps and social gambling. Casino Gaming Industry Trend. In 2018, there's potential for greater sync between offline and online casinos. Billionaire Casino: At this one you'll find other games not just social slots. So you'll get to enjoy social casino games that include roulette, video poker and blackjack. Most social casinos are available to download on iOS and Android and they both work in very much the same way. Just visit the App Store or Google Play Store to find out more.

Instagram, Snapchat remain especially popular among those ages 18 to 24

As was true in previous surveys of social media use by the Center, there are substantial age-related differences in platform use. This is especially true of Instagram and Snapchat, which are used by 67% and 62% of 18- to 29-year-olds, respectively.

Particularly for these two platforms, there are also pronounced differences in use within the young adult population. Those ages 18 to 24 are substantially more likely than those ages 25 to 29 to say they use Snapchat (73% vs. 47%) and Instagram (75% vs. 57%).

By comparison, age differences are less pronounced for Facebook. Facebook use is relatively common across a range of age groups, with 68% of those ages 50 to 64 and nearly half of those 65 and older saying they use the site.

Other demographic patterns related to social media and messaging app use are relatively unchanged from last year. Women are nearly three times as likely as men to use Pinterest (42% vs. 15%). Around half of college graduates and those who live in high-income households use LinkedIn, compared with 10% or fewer of those who have not attended at least some college or those in lower-income households. And WhatsApp continues to be popular among Hispanics: 42% use the messaging app, compared with 24% of blacks and 13% of whites. (For more details on social media and messaging app use by different demographic groups, see the bottom of the post.)

Majority of Facebook, Snapchat and Instagram users visit these sites daily

A 2018 Center survey found that some Facebook users had recently taken steps to moderate their use of the site – such as deleting the Facebook app from their phone or taking a break from the platform for some time. But despite these findings and amid some high profile controversies, Facebook users as a whole are just as active on the site today as they were a year ago. Roughly three-quarters of Facebook users (74%) visit the site daily, including about half who do so several times a day. These shares are identical to those reported by Facebook users in the Center's 2018 social media use survey.

Majorities of Snapchat and Instagram users also say they visit these sites daily, though they are slightly less likely than Facebook users to do so. The shares of young adults using these platforms daily are especially large. Roughly eight-in-ten Snapchat users ages 18 to 29 (77%) say they use the app every day, including 68% who say they do so multiple times day. Similarly, 76% of Instagram users in this age group visit the site on a daily basis, with 60% reporting that they do so several times per day. These patterns are largely similar to what the Center found in 2018.

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Other platforms are visited somewhat less frequently. Some 51% of YouTube users say they visit the site daily – a slight increase from the 45% who said this in 2018.

Note: See full topline results and methodology here.

Andrew Perrinis a research analyst focusing on internet and technology at Pew Research Center.
Monica Andersonis an associate director of research at Pew Research Center.

In 2012, when New Jersey lawmakers OK'd real-money internet gaming, many thought it was the first ripple in a wave that would sweep the nation and kick off a giant interstate industry. Some operators launched free-play internet platforms while they waited for the real thing.

They're still waiting. In 2018, only three states—Jersey, Delaware and Nevada—offer real-money online games.

Social Casino Demographics New York City

But social casinos continue to grow. The digital platforms do triple duty: as branded entertainment hubs, marketing channels, and data-capture tools. Ideally, they lure more players on property. And sometimes, they even make a little money.

Adam Krejcik, principal of Eilers & Krejcik Gaming, says many thought the social casino phenomenon 'would not survive as a genre' when real-money gaming stalled. 'They thought, who in his right mind would spend real money for virtual coins that can't be withdrawn? Well, the numbers and the growth of the industry have disproven that thesis.'

While social platforms associated with land-based operations occupy a tiny corner of the $4.5 billion worldwide social games market, there really is a payoff—for casinos and for players.

Social Casino Demographics

'Such a solution is not necessarily driven by P&L,' says Krejcik. 'It's more focused on helping to drive land-based play. That's harder to quantify in terms of impact, but the evidence and research we've collected points to it being a complementary service and solution that makes a lot of sense for casinos.'

It's been a big win for Foxwoods Resort Casino, according to Seth Young, director of online gaming for the tribal enterprise. Young gives FoxwoodsOnline 'an A-plus ranking.'

'Roughly 92 percent of new FoxwoodsOnline players aren't known to the Foxwoods Rewards Program,' which suggests that the social casino is tapping into a whole new customer base, Young says.

Allowing online players to earn on-site rewards has led to a 'quantifiable increase in both frequency of visitation and spend at the physical property' among those guests. It's also 'a great asset for new-customer prospecting.'

Facetime = Foot Traffic

When the value of social casinos was in question, gaming manufacturers recognized the opportunity, says Dana Takrudtong, executive in charge of digital transformation at GAN. 'They watched the rapid development of social casinos on Facebook and mobile apps, and the meteoric rise of revenues.

'The vendors who produced content said, ‘We have these historic libraries and these incredibly valuable games. Why don't we bring take this IP to our casino partners so they can participate in the marketplace as well?''

She calls social casino 'a phenomenal tool' that extends the house to the digital space, 24/7/365. 'Players can be home watching Netflix and shopping on Amazon while playing a social game, and the casino still has the player's share of wallet, share of mind and share of time.'

'This goes beyond simply providing casino-style games in mobile apps,' says Luisa Woods, vice president of marketing, gaming and entertainment at Delaware North, who previously led the online divisions of Tropicana Atlantic City and Caesars Interactive. 'These games are integrated into a deeper relationship with the customer. Casinos can provide features, services and benefits in new ways and get more face time with their customers.'

Ideally, 'that open communication channel' will tempt online patrons to become on-site players. 'Casinos have hotel rooms to fill, slot machines to be occupied, restaurants they want people to frequent,' say Woods, whose company acquired social casino developer Ruby Seven Studios in 2016. Social casinos, as much as direct mail and other types of outreach, can help make that happen.

So, just who is the typical social casino customer? 'We're stretching into younger generations,' says Woods, 'but it's not squarely centered around millennials at all.'

The demographic is 'probably 55-60 percent female, and skews a little older, north of 35,' says Bryan Bennet, senior vice president of AGS Interactive. 'It's the typical slots player you'll see on the casino floor. It's a real win for the casino when it gets that player back to the floor—that's where you monetize the endeavor in gaming as well as food, hotel, wherever you want them to go.'

What Players Want

So what do players get out of these games? Apparently, it's the same thing that drives other social-media engagement platforms: visibility, validation, and perceived status when they win. That helps bait the hook and keeps them coming back.

'It's all about developing ways to engage the player,' says Bennett, who came from social game developer RocketPlay when it was acquired by AGS in 2015. 'That's achieved with tournaments, missions, challenges—something every day that gives them a reason to come back and keep playing.'

Social Casino Demographics New York

Players in a social casino environment 'are driven by level and overall status,' he adds. 'They want to be the most decorated player in that room. We do a lot of live events where people can earn charms or trophies that go on their profile screen. Those things uniquely drive a social casino player as opposed to a normal casino player.'

He stresses that content is king. 'We don't build our own slots anymore, because the games from the AGS land-based team are just killing it,' says Bennett. 'We take them and pour them over, one for one, to play as close to the land-based games as possible. That's what players want, that authenticity. They want the same math, the same volatility, the same journey.

'A good metagame cannot make up for bad content,' Bennet says. 'And a bad metagame will not monetize the good content.'

How many social casino players go beyond free play to monetize—i.e., after using up all their free play, purchasing additional tokens or virtual currency to keep the game going?

'It's a small fraction, typically under 2 percent of the total player base,' according to Woods. 'The social casino model is largely built on the concept of scale. If you have a large enough audience, that 2 percent becomes meaningful in terms of a revenue stream.' (Some experts say the number of conversions can be as high as 10 percent.)

Other ways to monetize include advertising, Woods adds. 'We can very narrowly target appropriate ads and messages for appropriate audiences, so the likelihood of them benefiting from the message can be much higher. For people who aren't interested in reaching into their own pockets, casinos can essentially negotiate an exchange of their time and attention for additional coin-back.'

She says gaming companies are 'getting better at administering that implied contract, giving consumers more control over when and what types of ads they want to see in exchange for currency and time on device.'

'You can make some money in the space, but it's not like you're going to take on the Playtikas and Double Downs of the world,' says Bennet. 'It will pale in comparison to what you make on the casino floor. But people are more profitable on-property than off. Social casino is a fantastic contextual marketing channel to reach them and get them back on site.'

Free-play sites will break even 'in most cases after a year or two, and in fact even can be slightly positive,' Krejcik says. 'Financially it's not a major windfall, but from a strategic and marketing standpoint, it makes a lot of sense.'

The Future of Social Casinos

New

Other platforms are visited somewhat less frequently. Some 51% of YouTube users say they visit the site daily – a slight increase from the 45% who said this in 2018.

Note: See full topline results and methodology here.

Andrew Perrinis a research analyst focusing on internet and technology at Pew Research Center.
Monica Andersonis an associate director of research at Pew Research Center.

In 2012, when New Jersey lawmakers OK'd real-money internet gaming, many thought it was the first ripple in a wave that would sweep the nation and kick off a giant interstate industry. Some operators launched free-play internet platforms while they waited for the real thing.

They're still waiting. In 2018, only three states—Jersey, Delaware and Nevada—offer real-money online games.

Social Casino Demographics New York City

But social casinos continue to grow. The digital platforms do triple duty: as branded entertainment hubs, marketing channels, and data-capture tools. Ideally, they lure more players on property. And sometimes, they even make a little money.

Adam Krejcik, principal of Eilers & Krejcik Gaming, says many thought the social casino phenomenon 'would not survive as a genre' when real-money gaming stalled. 'They thought, who in his right mind would spend real money for virtual coins that can't be withdrawn? Well, the numbers and the growth of the industry have disproven that thesis.'

While social platforms associated with land-based operations occupy a tiny corner of the $4.5 billion worldwide social games market, there really is a payoff—for casinos and for players.

'Such a solution is not necessarily driven by P&L,' says Krejcik. 'It's more focused on helping to drive land-based play. That's harder to quantify in terms of impact, but the evidence and research we've collected points to it being a complementary service and solution that makes a lot of sense for casinos.'

It's been a big win for Foxwoods Resort Casino, according to Seth Young, director of online gaming for the tribal enterprise. Young gives FoxwoodsOnline 'an A-plus ranking.'

'Roughly 92 percent of new FoxwoodsOnline players aren't known to the Foxwoods Rewards Program,' which suggests that the social casino is tapping into a whole new customer base, Young says.

Allowing online players to earn on-site rewards has led to a 'quantifiable increase in both frequency of visitation and spend at the physical property' among those guests. It's also 'a great asset for new-customer prospecting.'

Facetime = Foot Traffic

When the value of social casinos was in question, gaming manufacturers recognized the opportunity, says Dana Takrudtong, executive in charge of digital transformation at GAN. 'They watched the rapid development of social casinos on Facebook and mobile apps, and the meteoric rise of revenues.

'The vendors who produced content said, ‘We have these historic libraries and these incredibly valuable games. Why don't we bring take this IP to our casino partners so they can participate in the marketplace as well?''

She calls social casino 'a phenomenal tool' that extends the house to the digital space, 24/7/365. 'Players can be home watching Netflix and shopping on Amazon while playing a social game, and the casino still has the player's share of wallet, share of mind and share of time.'

'This goes beyond simply providing casino-style games in mobile apps,' says Luisa Woods, vice president of marketing, gaming and entertainment at Delaware North, who previously led the online divisions of Tropicana Atlantic City and Caesars Interactive. 'These games are integrated into a deeper relationship with the customer. Casinos can provide features, services and benefits in new ways and get more face time with their customers.'

Ideally, 'that open communication channel' will tempt online patrons to become on-site players. 'Casinos have hotel rooms to fill, slot machines to be occupied, restaurants they want people to frequent,' say Woods, whose company acquired social casino developer Ruby Seven Studios in 2016. Social casinos, as much as direct mail and other types of outreach, can help make that happen.

So, just who is the typical social casino customer? 'We're stretching into younger generations,' says Woods, 'but it's not squarely centered around millennials at all.'

The demographic is 'probably 55-60 percent female, and skews a little older, north of 35,' says Bryan Bennet, senior vice president of AGS Interactive. 'It's the typical slots player you'll see on the casino floor. It's a real win for the casino when it gets that player back to the floor—that's where you monetize the endeavor in gaming as well as food, hotel, wherever you want them to go.'

What Players Want

So what do players get out of these games? Apparently, it's the same thing that drives other social-media engagement platforms: visibility, validation, and perceived status when they win. That helps bait the hook and keeps them coming back.

'It's all about developing ways to engage the player,' says Bennett, who came from social game developer RocketPlay when it was acquired by AGS in 2015. 'That's achieved with tournaments, missions, challenges—something every day that gives them a reason to come back and keep playing.'

Social Casino Demographics New York

Players in a social casino environment 'are driven by level and overall status,' he adds. 'They want to be the most decorated player in that room. We do a lot of live events where people can earn charms or trophies that go on their profile screen. Those things uniquely drive a social casino player as opposed to a normal casino player.'

He stresses that content is king. 'We don't build our own slots anymore, because the games from the AGS land-based team are just killing it,' says Bennett. 'We take them and pour them over, one for one, to play as close to the land-based games as possible. That's what players want, that authenticity. They want the same math, the same volatility, the same journey.

'A good metagame cannot make up for bad content,' Bennet says. 'And a bad metagame will not monetize the good content.'

How many social casino players go beyond free play to monetize—i.e., after using up all their free play, purchasing additional tokens or virtual currency to keep the game going?

'It's a small fraction, typically under 2 percent of the total player base,' according to Woods. 'The social casino model is largely built on the concept of scale. If you have a large enough audience, that 2 percent becomes meaningful in terms of a revenue stream.' (Some experts say the number of conversions can be as high as 10 percent.)

Other ways to monetize include advertising, Woods adds. 'We can very narrowly target appropriate ads and messages for appropriate audiences, so the likelihood of them benefiting from the message can be much higher. For people who aren't interested in reaching into their own pockets, casinos can essentially negotiate an exchange of their time and attention for additional coin-back.'

She says gaming companies are 'getting better at administering that implied contract, giving consumers more control over when and what types of ads they want to see in exchange for currency and time on device.'

'You can make some money in the space, but it's not like you're going to take on the Playtikas and Double Downs of the world,' says Bennet. 'It will pale in comparison to what you make on the casino floor. But people are more profitable on-property than off. Social casino is a fantastic contextual marketing channel to reach them and get them back on site.'

Free-play sites will break even 'in most cases after a year or two, and in fact even can be slightly positive,' Krejcik says. 'Financially it's not a major windfall, but from a strategic and marketing standpoint, it makes a lot of sense.'

The Future of Social Casinos

If and when real-money iGaming becomes widespread in the United States, will it coexist with social sites? Will the customer groups overlap? The answer to both questions, Woods says, is yes.

'People have different appetites at different times—there are days they wake up feeling lucky and want to wager real money. Some days they just want to be entertained. The day after payday feels very different than the day before payday.'

'It remains to be seen, but we're of the mindset that social casino is going to coexist with real-money gaming, even if it becomes readily and widely available across the U.S.,' says Krejcik. 'Certainly there will be some users and players who switch, because the social game designs are much more casual, social-based, pick-up-and-play. They don't have any of the pressure or anxiety of winning or losing a bunch of money.'

Not all casino operators have jumped into the social, and that can be to their detriment as players give their loyalty to other brands. But it's not too late, and according to Takrudtong, it's not really too expensive.

'It's unwise to sit out the space when the barriers to entering social, after five years of development by the major suppliers, are incredibly low. The price of entry is effectively three slot machines, and I don't believe there's a casino with over 1,200 units on their floor that can't carve out a budget for three slot machines. In return, they're putting their games in the hands of players on their own devices.'

As Bennet puts it, 'When we talk to casinos these days, the first thing I say is, ‘Your players are playing these games right now. And they should be playing your game.''

Social Casino Makes the Grade
Bob Hayes, Vice President, Global, Commercial, Interactive, Scientific Games

How successful are social casinos in bringing people to land-based properties?

Social Casino Demographics Philadelphia

Based on anecdotal evidence and research, social casinos have served as a driver for increased visitation and spend on the casino floor. Richard Schwartz, president of Rush Street Interactive, said they saw their social casino site increase land-based visits by over 20 percent each year and a half, post-launch.

In a 2017 Global Gaming Business article, Penn National Gaming, now using the SG Universe product suite, recognized early returns from Hollywoodcasino.com, seeing significant overlap in land-based and active social casino participants.

A study by Game Account Network over nearly eight years across six major U.S. casinos showed an average 28 percent uplift in on-property theoretical win from increased visitors who also engaged with the social gaming platform.

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The moral of the story: a social casino doesn't cannibalize brick-and-mortar, it complements it.

How do social casinos support a marketing strategy?

Brick-and-mortar casinos can market to an engaged social casino audience via highly targeted and highly trackable digital tactics—everything from push messaging and geo-fencing to in-app messaging and email campaigns. These tactics can be easily segmented, A/B tested, and optimized on an ongoing basis to provide the best possible results, even as an audience base evolves.

As part of the SG Universe product suite, customers can utilize Core Systems Integration technology to tie into their land-based systems, which provides a true 360-degree view of the player. Strategic use of this view can empower casinos to serve up communications that answer to the marketing trifecta: right audience, right place, right time. Nothing trumps the importance of relevance.

What demographic is reeled in via social casinos?

It tends to skew female at 79 percent with an average age of 39. Research shows that 82 percent of social casino gamers visited a land-based casino within the past year, and 60 percent have visited a land-based casino in the past six months. These results reinforce that there is a continued and undeniable convergence of land-based and online play. Today's patron is more multi-channel than ever before.

What trends should we be watching for in 2018?

Different in-game features and functionalities will pop up that make for a more interesting and compelling player journey. In particular, look for evolution around features that connect people and create communities, as well as those that tie back into the property with offers, tournament qualifiers and more.





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