Social Gaming Shows Impressive Q1

Posted on 2018-06-04 by Sean Williamson

A Sterling Start To 2018 For The Social Gaming IndustryFree play social gaming operators have gotten off to a good start for the new year. This is evident from the double-digit revenue growth that has been posted for the first quarter of the year. A new social gaming assessment performed by Eilers & Krecjik Gaming indicates that the social gaming market generated revenue to the tune of $1.27bn during the first three months of 2018 alone.

This figure marks an 18% improvement over the same period in 2017. The figures are quite impressive and even a bit staggering when considering that players do not actually win any real money, but play for the privilege of being able to continue to play.

As has been the want of the industry as a whole, the impressive revenue was driven largely by mobile devices. Revenue growth of more than one quarter is the extent of what is on the table. Eilers & Krecjik Gaming also confirmed that the overall social gaming market had been growing by 20%, year on year. The total market worth is estimated at $4.72bn for the last 12 months.

Playtika Claims Top Honours

Playtika, owner of the ever-popular Slotomania, claimed top earning honours, having generated revenue of $348m. Playtika is a former Caesar’s Interactive Entertainment property and was acquired by a Chinese consortium in 2016, for a daredevil asking price of $4.4bn.

Australia’s Aristocrat Technologies, a subsidiary of Aristocrat Leisure, came in at a sweet second on the revenue generation chart, having racked up revenue to the tune of $155.7m for the same period. The revenue generated by Aristocrat Technologies represents 12% of the overall market.

These were the only two online casino and gaming operators showing a double digit of their own accord, but myVegas, a division of Playstudios, and the digital division of Scientific Games, both showed a strong first quarter too.

More Consolidations Expected

Large consolidations have been at the order of the day in the real-money gaming sector, but the same has not been true for the social gaming sector up until this point in time. However, Eilers & Krejcik has confirmed that consolidations other than the Big Fish transfer may very well be on the table yet.

Social casino operators have been under a lot of pressure in the state of Washington, after players had commenced with the institution of legal action, claiming that social gaming constituted illegal gaming under state law. 

Some social casino operators have gone as far as withdrawing their services and games from Washington state.