Social casinos as a business: Unmasking the money-making strategies of social casinos
Online gambling using real money is heavily regulated, so they’re not available in every state. Although gambling is prohibited in some jurisdictions, operators remain creative in entertaining casino game enthusiasts. The gambling industry has a large market of fans, and the best way to offer casino games for jurisdictions that restrict real-money gambling is through social casinos.
Unlike online casino real money, social casinos allow players to enjoy the games for free. It might confuse some people as these casino operators must make a profit to continue offering their services. Believe it or not, social casino sites can earn a stable revenue.
One of the differences players can easily spot between a social casino and real money casinos is that they don’t have to deposit real money to start playing. When a player signs up on a social casino, they’ll receive virtual currencies to “bet” on the casino games for free. As social casino operators aim to provide a casino experience to their customers, the site features classic games like blackjack, poker, roulette and slots.
Like traditional real money casinos, social casino sites also reward welcome bonuses and regular promotions. What separates the two is that social casino sites only require players to do simple tasks, like logging in every several hours and completing challenges to obtain the freebies. The catch is social casino users won’t be able to win real money from the games.
Why social casinos are popular
Despite the lack of real money prizes, social casinos remain popular. One of the reasons is that there are still many casino enthusiasts who enjoy playing the games. However, they prefer to avoid the risk of betting with real money.
Using the virtual currency given by the casino, users can play to their heart’s content without the fear of losing money. Even if social casinos don’t require users to bet with real money, these platforms still have an age limit. The restriction is due to the nature of the games, which can lead to gambling addiction if the player isn’t responsible.
It’s important for casino players to always be aware and practice responsible gambling, even if the game doesn’t involve real money.
Running with the trend
People’s preferences usually change according to trends. Developers or casino operators will follow the trend to attract more players and turn them into regular customers.
Gaming needs competition to keep players interested. A competitive element motivates humans by letting them outperform others. This psychological nature of the human mind is one of the reasons why casino tournaments are popular.
Besides competition, social interactions are attractive to gamers in the modern era. Social casino sites allow users to connect with their friends or play with others to expand their connection. They can do friendly matches or compete with each other while playing.
How social casinos make a profit
Social casinos face costs to run games where nobody pays to play or collects real winnings, yet operators aim to profit somehow. The business still bears expenses for maintaining the platform while seeking to turn a profit, which raises questions about how its financial model works.
Before understanding how the financial model works, it’s essential to know how the coin system works.
When a social casino gives away bonuses, they often reward Sweepstakes Coins to the user. It might require some effort to get more free Sweepstakes Coins, like consistent login, fulfilling daily tasks, and others. However, the casino inevitably provides players with various ways of getting more Sweepstakes Coins for free.
Unlike Sweepstakes Coins, Sweepstakes Cash isn’t available for purchase. The casino might give them out for free, but the amount won’t be enough to unlock the premium features. Players can only obtain them through the bonuses in the coin stores.
Players who have spent all their Sweepstakes Coins can get more through the casino bonuses. However, they can also use real money to purchase some. The casino commonly offers the coins in packages, which come with extra Sweepstakes Cash or the premium currency.
In short, social casinos are similar to free-to-play video games. Players won’t have to pay to enjoy the product, but if they want to unlock the premium features, they must spend real money.
The freemium model
Social casinos implement the freemium model of business. This method is popular among game developers, as they can reach a larger audience and take advantage of customers’ spending tendencies.
Developers or operators using the freemium model depend on in-app purchases. They’ll find a way to entice customers to spend money, even if it’s not mandatory. However, customers on a roll are usually willing to spend to extend their gaming session.
Social casino operators must be innovative when setting up prices on their coin packages. They can increase the price slightly in return for a more beneficial package. For example, players can get 150 Sweepstakes Coins and 10 Sweepstakes Cash for $10. However, when they buy the $15 package, they’ll receive 400 Sweepstakes Coins and 25 Sweepstakes Cash.
This pricing tactic is called the freemium model. Developers or operators allow customers to enjoy their services for free up to a point, but they allow customers to get more benefits when they pay.