IS IT TIME TO TAP INTO THE REAL-MONEY MOBILE GAMING BOOM ?  Probability_Feb 19 2014
Upcoming SlideShare
Loading in...5
×
 

IS IT TIME TO TAP INTO THE REAL-MONEY MOBILE GAMING BOOM ? Probability_Feb 19 2014

on

  • 299 views

Exploring the opportunities for media owners, app developers, marketing agencies and mobile network operators to generate extra revenue, attract new customers by tapping into the mobile real money ...

Exploring the opportunities for media owners, app developers, marketing agencies and mobile network operators to generate extra revenue, attract new customers by tapping into the mobile real money gaming boom. Gambling on mobile devices will generate €19bn of revenue worldwide in 2018 (H2 Gambling Capital). Mobile is an unstoppable force in the gambling industry. Almost half of on-line betting in the UK has already switched to mobile, and no major gambling operator can afford not to have a mobile site. Mobile is disrupting gambling in less obvious ways by bringing in a whole new type of customer, and opening up the opportunity to brands and marketeers from outside the traditional industry to promote casual, entertainment focussed, gambling games direct to mobile. Recently we’ve noticed a growing number of non-gambling companies approach us with an interest in entering the sector. They are attracted by the potential to increase revenues, to attract, retain and engage customers. But they’re not gambling businesses, and they don’t want
to be gambling businesses. Our White Label partnership programme is designed to meet that need. These partners often share the same questions and concerns about
gambling - how it works, who plays, why they play, where they play. To help answer these questions we invited a sample of our UK customers to participate in a mobile survey. Nearly 4000 participated. In this White Paper you will get many of the answers and insights you need to map out your path into mobile entertainment gambling.
Our survey reveals which social and other media channels they use, the gender split
of players, the average game play session time, peak times of play, and the top 5 regions in the UK for cash game players. We think you’ll agree with us that, with the right partner and strategy, real money mobile games present a fantastic opportunity
for brands, media owners, marketing agencies and mobile network.

Statistics

Views

Total Views
299
Views on SlideShare
298
Embed Views
1

Actions

Likes
0
Downloads
6
Comments
0

1 Embed 1

http://www.slideee.com 1

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

IS IT TIME TO TAP INTO THE REAL-MONEY MOBILE GAMING BOOM ?  Probability_Feb 19 2014 IS IT TIME TO TAP INTO THE REAL-MONEY MOBILE GAMING BOOM ? Probability_Feb 19 2014 Document Transcript

  • 33 59 A white paper by Probability – A leader in mobile entertainment gambling services and technology, operating exclusively in regulated markets. IS IT TIME TO TAP INTO MOBILE GAMING BOOM? THE REAL-MONEY IS IT TIME TO TAP INTO MOBILE GAMING BOOM? THE REAL-MONEY THE FUTURE OF MOBILE GAMING AND GAMBLING Exploring the opportunities for media owners, app developers, marketing agencies and mobile network operators to generate extra revenue, attract new customers by tapping into the mobile real money gaming boom.
  • White Paper: The Future of Mobile Gaming and Gambling 2 TABLE OF CONTENTS: • Introduction • What is mobile entertainment gambling? • The Opportunity • Meet the players. • - How often do you play and bet on mobile? - Where do you usually play? - Do your family, friends and colleagues play and bet on mobile? - Would you recommend mobile entertainment gambling to family, friends and colleagues? - What types of TV programmes to you watch most? - How do you read the news? • Conclusion • Case studies: - MadAboutSlots - Winneroo • Why work with us • About Probability • Methodology 2 3 6 7 8 9 10 11 12 13 14 15 16 17 19 20
  • White Paper: The Future of Mobile Gaming and Gambling 3 Mobile is an unstoppable force in the gambling industry. Almost half of on-line betting in the UK has already switched to mobile, and no major gambling operator can afford not to have a mobile site. Mobile is disrupting gambling in less obvious ways by bringing in a whole new type of customer, and opening up the opportunity to brands and marketeers from outside the traditional industry to promote casual, entertainment focussed, gambling games direct to mobile. Probability was a pioneer in mobile entertainment gambling when we for dozens of brands, supporting thousands of mobile devices, and over a million registered players in the UK with a catalogue of products ranging from Bingo to Roulette, Blackjack to Slots. Recently we’ve noticed a growing number of non-gambling companies approach us with an interest in entering the sector. They are attracted by the potential to increase revenues, to attract, retain and engage customers. But they’re not gambling businesses, and they don’t want to be gambling businesses. Our White Label partnership programme is designed to meet that need. These partners often share the same questions and concerns about gambling - how it works, who plays, why they play, where they play. To help answer these questions we invited a sample of our UK customers to participate in a mobile survey. Nearly 4000 participated. In this White Paper you will get many of the answers and insights you need to map out your path into mobile entertainment gambling. Our survey reveals which social and other media channels they use, the gender split of players, the average game play session time, peak times of play, and the top 5 regions in the UK for cash game players. We think you’ll agree with us that, with the right partner and strategy, real money mobile games present a fantastic opportunity for brands, media owners, marketing agencies and mobile network Gambling on mobile devices will generate €19bn of revenue worldwide in 2018 (H2 Gambling Capital) Over 20 million Britons play a mobile game at least once a month. 6 million play daily. (Comscore) Introduction
  • White Paper: The Future of Mobile Gaming and Gambling 4 Entertainment gambling is our name for low stakes, high payout, high frequency gaming which is all about fun with a chance to win some money. It’s end-of-the-pier fun, and part of a wider and diverse gambling world. The shape of the gambling industry The range of offerings in the gambling industry is very wide, with a complex supply chain and intense competition at every level. At the more traditional end are major bookmakers and land based casinos, which often have a small number of very valuable players supporting their revenues. In the middle are popular sports betting services, online casinos and Bingo. “Casual” or “Entertainment” gambling covers everything from Lottery scratchcards to a 5p mobile Slot game. This is by far the largest segment in terms of participation and also the most socially acceptable. The Mobile Effect In the 2013 eGaming Review Power 50, every one of the Top 10 companies companies (including Probability). In fact, two of our “B2B” customers are in the top three. Mobile and tablet are reshaping the whole industry. Some analysts believe that up to 30% of e-gambling revenues will be via mobile by 2015, and some of the vertically integrated bookmakers are already reporting that half their digital sports bets are being made through their mobile sites. As long time participants and industry is only just beginning. mobile, driven by convenience and the added privacy of accessing gambling on a personal device. WHAT IS MOBILE ENTERTAINMENT GAMBLING? Tablets are showing faster adoption rates that smartphones. It took nearly four years to reach 6% penetration from when the devices level. Tablets accomplished this in just two years. (Business Insider) One in every 5 people in the world owns a smartphone, one in every 17 owns a tablet. (Business Insider)
  • White Paper: The Future of Mobile Gaming and Gambling 5 The next phase, however, will be different; the customer will be mobile Tablet adoption will strongly because tablet services can more closely represent the desktop experience and players are more likely to engage in longer duration, complex gaming sessions on a table than a smartphone. And already in the last few months Probability has noticed more players using tablet devices to play our real money mobile gambling games. Currently 51% of players use iOS devices, 38% play on Android and the remaining 11% play on other devices (e.g.; iPad, iPod and Java) with the most popular game in the Probability’s games lobby being ‘Pots O Plenty’, a Slots game themed around the Emerald Isle with pots of gold, leprechauns and rainbows. Times are (still) a’changing When is a gambling game not a gambling game? When it’s in a “social casino”. In the USA, where online gambling is still mostly illegal, three of the top ten grossing mobile apps in 2013 were social casinos (AppAnnie). They are classed as non-gambling products because players cannot withdraw money or prizes, and there is no regulation of the product or the service. Players in the UK can enjoy “the real thing” and here, social casinos are much less prominent in the sales charts. On the other hand, our survey found that 74% of our customers actually play on social casinos - even though they can’t win real money. We think that social casino is a potentially disruptive innovation for real money gaming - not because it will stop people from doing it (the UK shows that) but because it changes what people expect. Social casinos which real money sites don’t offer. To stay relevant, real money gaming needs to adapt. We’ve started that process already with our hugely successful “Daily Bonus Bonanza”. Expect more to come. Mobile squared predicts the number of mobile users placing bets via their mobile device will overtake the 9 million online users by the end of 2014 at the latest. Social casinos generated $1.1bn of revenue in the USA in 2013. (Superdata) Mobile gambling set to be worth $100bn by 2017 (Juniper)
  • White Paper: The Future of Mobile Gaming and Gambling 6 THE OPPORTUNITY FOR BRANDS. Mobile entertainment gambling is a fast growing, mainstream form of entertainment. These services deliver snackable fun to people who want to play mobile games on the go, for a few minutes with the chance to win real money. Typcially, these players don’t consider it to be “gambling” (in the same way as Lottery is not seen as betting), attracting a whole new audience and creating whole new opportunities for brands to get on board. Our solution for non-gambling companies looking to enter the space is our White Label fully managed service. White Label gives partners a mobile entertainment gambling service we are fully responsible under regulation. Our brand partners market the service through their existing channels and we work closely together on promotions and customer retention, as well as maximising the value to their overall business. Together we can build a sustainable and responsible new source of revenue, a relationship builder with customers and a point of differentiation in the market. There has never been a better time to tap in to the opportunity of real money mobile entertainment gambling. It’s predicted that 30% of all online gambling revenues will come via mobile by 2015 (Juniper)
  • White Paper: The Future of Mobile Gaming and Gambling 7 Meet the Players. We surveyed around 4,000 of our active customers over a period of a couple of weeks in late 2013. accounts on one of our mobile casino brands in the UK. this survey. But before we do that, you might be interested to know a bit more about who and where they are: • Average age is just under 30. • 53% of respondents were male, 47% female. • The average game play session with us is 12 - 15 minutes, on average 3 times a day when active. • Peak times of play are 6pm to 10pm on weekdays, later on Saturdays. • The top 5 regions for cash play in the UK are the East Midlands, Greater London, the South East, South West and West Midlands.
  • White Paper: The Future of Mobile Gaming and Gambling 8 How often do you play and bet on mobile? • 62.3% of participants play and bet on mobile more than once a week • 26.8% of participants play and bet on mobile more than 3 times a week Our view: Frequency of play for these products is similar to that for non-real money games. In players minds, they are just another game. That’s key to understanding the potential for mass acceptance of this format of gambling. Diagram 1. How often do you play and bet on mobile? KEY SURVEY FINDINGS 10%5%0% 15% 20% 25% 30% 1x per week 603 2x per week 685 1x per month 393 2x per month 251 Occasionally at events 473 More than 3x per month 243 More that 3x per week 973
  • White Paper: The Future of Mobile Gaming and Gambling 9 Where do you usually play? • 92% of participants said they usually play at home • 21% said they play whilst travelling Our view: With 92.1% playing at home (we think, largely, whilst watching TV), this explains the frequency of play (1-3 times a week for most people) and the short session periods (<15 minutes on average) which we observe. This is similar to other forms of casual gaming. We read into this that real money gaming is seen by our customers as a distraction. Diagram 2. Where do you usually play? 0 500 1000 1500 2000 2500 3000 3500 (759) Whilst Travelling 20.7% (3372) At home 92.1% (594) At work 16.2% (246)Inthe parkorother outdoorspace 6.7% (268) In a pub, bar or restaurant 7.3%
  • White Paper: The Future of Mobile Gaming and Gambling 10 Do your family, friends and colleagues play and bet on mobile? • 47% of participants said they do. Diagram 3. Do your family, friends and colleagues play and bet on mobile? Our view: entertainment gambling services we offer. Not only do nearly 70% of players know whether or not their friends and family play and bet on mobile, but 47% say they know someone who does. 10005000 1500 2000 (1705) Yes 47.0% (743) No 20.5% (1182) I don’t know 32.6%
  • White Paper: The Future of Mobile Gaming and Gambling 11 Would you recommend mobile entertainment gambling to family, friends and colleagues? • 87% of participants would recommend mobile entertainment gambling to family, friends and colleagues Our view: The consistency of the answers to our questions about the shareability of mobile gambling was very strong. It clearly supports our view that this is a socially acceptable, mass market proposition which - if responsibly managed and properly positioned - offers no reputational risk to brands for whom it is relevant. Diagram 4. Would you recommend mobile entertainment gambling to family, friends and colleagues? 0 500 1000 1500 2000 2500 3000 3500 (3166) Yes 86.9% (382) No 10.5% (95) If no, why not? 2.6%
  • White Paper: The Future of Mobile Gaming and Gambling 12 Our view: Savvy marketers and brands can use this data to correlate the potential appeal of mobile gambling with their customers based on information they have about their viewing habits. Diagram 5. What types of TV programmes do you watch most? 0% Film Comedy Soaps Documentary Drama Entertainment Music Sport Game Shows Factual All Other Responses 20% 40% 60% 80% 100% 215 648 2279 246 812 2056 710 807 1503 568 1093 1344 540 1105 1327 650 1223 1004 622 1040 1143 13845 10762 5646 242 811 1893 496 1073 1362 1112 663 1152 What types of TV programmes do you watch most? • 72.6% of participants ranked Film as their most favourite ‘thing’ to watch on TV • 66.1% said Comedy • 64.3% said Entertainment • 49.8% ranked Soaps
  • White Paper: The Future of Mobile Gaming and Gambling 13 How do you read the news? • 41% of participants said they read the news on mobile. 10005000 1500 2000 On Desktop 10.6% On Mobile 41.2% On Tablet 6.9% In Print 45.0% I don’t read the news 22.3% Diagram 6. How do you read the news? Our view: Many of our customers are either print media or advertising partners gambling might appeal to their consumers. Print is the preferred media channel of 45% of participants but mobile is catching up - only 4% behind with 41% of participants saying they read the news on their mobile. For brands looking to remain relevant to consumers migrating their activities and attention from print to mobile, we think adding a real money gaming service to the mobile property could help secure their loyalty and add value to the new media.
  • White Paper: The Future of Mobile Gaming and Gambling 14 We want to highlight two themes from our survey results: 1. Social acceptability of mobile gambling. Whilst “hard” forms of betting and gambling, such as going into a casino or a betting shop, are still somewhat taboo in many respects, “soft” casual games, positioned as fun rather than risk, are socially acceptable and highly shareable. 2. Broad demographic appeal There’s no single “type” who plays mobile gambling games. Players discover, consume and share these products just like other games they can play on their mobile. that smart brand owners have good reason to be interested in this area. We’ve included case studies of some of our partners; two very different businesses with different customers, but both able to exploit this opportunity to the full. hope to be able to help you too. CONCLUSION
  • White Paper: The Future of Mobile Gaming and Gambling 15 Objective: Solution: MadAboutSlots partnered with Probability to establish themselves Probability’s White Label managed solution. Eschewing a saturated online bingo market, MadAboutSlots launched with Probability in August 2012 heralding a new era in mobile gambling. Results: During the 18 months since launch MadAboutSlots has seen incredible growth from the initial nine-month period versus the second, notably a; • 146% increase in deposits • 149% increase in revenue • 190% increase in cash bets • 120% increase in new depositing players Testimonial: “Our partnership with Probability enabled us to create a well-designed site that is on-brand and in August 2012 we launched madaboutSlots. co.uk to offer players excellent games to suit all types of budget. The results have been fantastic, delivering over and above our initial KPIs and are a direct result of Probability’s CRM team.” Andrew Edwards, CEO, Founder, MadAboutSlots CASE STUDY 1: MadAboutSlots
  • White Paper: The Future of Mobile Gaming and Gambling 16 Objective: To drive additional revenue from their competition site Solution: Winneroo, the UK’s latest concept in free prize competitions, utilised Probability’s ‘White Label’ managed solution to provide mobile gaming and gambling expertise, player security, regulatory compliance, CRM, access to Probability’s games portfolio and more, and ultimately increase deposit values and revenue to Winneroo’s competition site. The service went live in October 2012. Results: from the initial six-month period versus the second, notably a; • 239% increase in deposits • 258% increase in revenue • 228% increase in cash bets • 152% increase in new depositing players Testimonial: “We chose Probability as our mobile casino provider for Winneroo Games because of their strong games portfolio, readiness to launch into the UK market, and proven track record of delivering successful mobile casinos. The casino started performing strongly soon after launch and continues to trade ahead of expectations.” Jussi Halme, Director, Winneroo CASE STUDY 2: Winneroo
  • White Paper: The Future of Mobile Gaming and Gambling 17 Probability’s business-to-business White Label solution provides media owners, app developers, broadcasters, marketing agencies, mobile network operators and gambling operators with access to our network. The service helps brand and businesses to generate new revenue, attract new customers and build customer loyalty amongst an existing customer base. Why work with Probability • Open new revenue streams • Launch branded games services • Increase brand exposure and drive loyalty • Access to exclusive HD games We simplify your journey into mobile entertainment gambling. The mobile entertainment gambling industry is booming right now. Various games companies are investigating the best route to market as the convergence of social and freemium to premium gathers momentum on a global scale. In Q1 2013 alone Probability secured a partnership with global gaming giant Glu Mobile to expand their real-money gaming portfolio and entered into content licensing and distribution agreement with Spin Games. More global announcements are on the horizon... In the UK and Italy we provide fully managed White Label solutions for non-gambling brands such as digital media companies, app developers, marketing agencies, broadcasters and mobile network operators to help them further monetise new and existing customers, plus drive loyalty and brand exposure. Moreover customers are able to play fun, interactive mobile games and win real money at a time and place that’s convenient to them. WHY WORK WITH US WHITE LABEL PROBABILITY MANAGED DEDICATED ACCOUNT MANAGEMENT TEAM 1-8WEEK PROCESS Gambling license Fraud management Tier one banking Customer services API tools Games portfolio Due diligence and Gibraltar Gambling Commissioner (GGC) approval You provide the brand Plus market to existing and new customers through your channels Configure and build site New games releases Customer marketing Revenue increase Customer engagementQA testing CRM Device compatibility Regulatory compliance Mobile portal Player security Reporting
  • White Paper: The Future of Mobile Gaming and Gambling 18 – Probability are the mobile entertainment gambling experts. The team works collaboratively, sharing ideas to overcome challenges and to make sure the company is always ahead of the game, both with our technology and services, and with the insight provided to our customers, partners and the industry at large. – Since launch in 2004 the vision has been to focus exclusively on mobile and that’s one of the reasons why Probability is leading the way in mobile entertainment gambling. Games are built Android, Blackberry and tablets. – Probability are a safe pair of hands, the business holds remote gaming licence from the Government of Gibraltar, Probability Games Corporation is licenced by the UK Gambling Commission and the business operates exclusively in regulated markets. – In June 2013 the company introduced the next generation of mobile gambling games supercharging the player experience with HD graphics, responsive interfaces, smooth animation and crystal clear sound, with the release of six HD Slots for iOS, Android and Blackberry users - The result of over £1m R&D. – Slot-O-Matic, Probability’s game development and management system enables the business to create more games, on more devices, in more regulated jurisdictions, more quickly than anyone else in the market. Reducing time to market from months to days. In addition the business provides 10 years unrivalled mobile player insight gathered from data captured across our network. Mobile specialists 100% mobile Trusted partners Next generation HD games Technology and insight Top 5 reasons to work with Probability.
  • White Paper: The Future of Mobile Gaming and Gambling 19 Probability is a leader in mobile entertainment gambling services and technology, operating exclusively in regulated markets. The business owns and operates some of the UK’s most popular mobile (www.ladylucks.co.uk), Moobile Games (www.moobilegames.com) and Touch My Bingo (www.touchmybingo.com). Probability provides a fully managed White Label solutions for non- gambling brands such as media companies, app developers, marketing agencies, broadcasters and mobile network operators. In the UK and Italy Probability provides its games as a hosted service to leading gambling operators including Paddy Power, William Hill, Lottomatica and SNAI. The business was founded in 2004 and is headquartered in London, UK with subsidiaries in Gibraltar and Switzerland. It is licensed to provide gambling services in the UK, Gibraltar and Italy. is listed as PBTY. www.probability.co.uk @ProbabilityPlc info@probability.co.uk ABOUT PROBABILITY
  • White Paper: The Future of Mobile Gaming and Gambling 20 All data and insight shared in this White paper are provided by Probability unless stated otherwise. Our quantitative research involved an online survey of 3,766 customers who play Probability’s mobile entertainment gambling games. As a thank you, each participant’s account was credited with a £2 bonus. A participant could only complete the survey once. started). The survey ran for a four-week period during H2 - 2013. METHODOLOGY
  • 33 59 White Paper: The Future of Mobile Gaming and Gambling 21 SPEAK WITH THE MOBILE SPECIALISTS It’s time to tap into the real money mobile gambling boom. Contact us now boom@probability.co.uk www.probabilitywhitelabel.com www.probability.co.uk Petersham House, 57A Hatton Garden, London, EC1N 8JG Copyright © Probability 2014. All rights reserved. Nopartofthematerialsincludinggraphicsorlogos,availableinthispublication oronlinemaybecopied,photocopied,reproduced,translatedorreducedtoany electronicmediumormachine-readableformat,inwholeorpart,withoutspecific permission. Distribution for commercial purposes is prohibited.