Gaming in Holland presentation 24 June 2014
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Gaming in Holland presentation 24 June 2014






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Gaming in Holland presentation 24 June 2014 Gaming in Holland presentation 24 June 2014 Presentation Transcript

  • Social Casino 2014 « How’s Things? »
  • RAF KEUSTERMANS Co-Founder, CEO Plumbee Board Director International Social Games Association Board Director Bonza Gaming (JV Unibet/Plumbee) Independent Social Gaming Consultant 2010-2011 Global Marketing Director Playfish (EA) 2009-2010 Marketing Director EMEA (EA) 2008-2009 Head of Marketing Western Europe 2005-2008 Strategic Planner at BBDO, Grey and Publicis 1998-2005 @raf_keustermans
  • • °July 2011, London – founded by 3 ex EA/Playfish execs. • 55+ staff today • Top-10 social casino company in revenue and audience • RMG JV with Unibet – Bonza Gaming (on Fb and Mobile) • Raised $16.8M - last round ($14M) Dec-13 led by Endemol • Key products (free-to-play): – Mirrorball Slots (Fb and mobile) – Mirrorball Bingo, soft-launched on Fb April-14, includes Endemol brands (Deal or No Deal bingo room)
  • Social Casino Status 2014 • Industry growing up fast, becoming mature – $2B-$2.5B estimated revenue in 2013 – 60% market share owned by Top-5 (Caesars, IGT, Zynga, GSN, Big Fish) • Caesars Interactive social games revenue will hit $500M in 2014! – On-going consolidation, M&A – Facebook canvas hit plateau, huge growth mobile/tablets – Production and marketing budgets going up • $2M+ production budgets, $10M+ marketing budgets • No longer ‘indie’ territory – Tough environment for newcomers…
  • Social Casino M&A 2009: Gamesys (JackpotJoy) ‘acq-hired’ IWI (undisc) 2010: buys Mytopia for $48M 2010: Fremantle buys Ludia (undisc) 2011: Caesars buys Playtika (Slotomania) for $100M+ 2012: IGT buys Double Down Interactive for $500M 2012: RockYou buys Ryzing (bingo, undisc) 2012: Aristocrat buys Product Madness (undisc) 2012: Novomatics buys Cervo Media (undisc) 2012: WMS buys Phantom EFX for $20M 2013: Caesars buys Buffalo Studios for $90M 2013: Caesars buys EA Montréal studio (WSOP, undisc) 2014: Caesars buys Pacific Interactive (House of Fun) for $96M 2014: GSN buys Bash Gaming (Bingo Bash) for $160M 2014: Bally buys DragonPlay for $100M $1.2B+ in the last 4 years
  • M&A drivers 2 different corporate strategies • Social casino as marketing tool for RMG business – Brand awareness, customer acquisition • Use a (branded) social casino game as a brand awareness driver, expand in new markets, reach new audiences. • Cheeky Bingo, Pokerstars Play – Customer loyalty, CRM • Use a social casino game to (re)connect with existing casino customers. Link with loyalty system, drive footfall to the casino/resort. • E.g. MGM with MyVegas • Social casino as stand-alone growth engine, revenue driver – Standalone business, social casino as a new division, a revenue generator, new growth area. – Not integrated with RMG business at all. – Caesars, IGT, WMS strategy
  • The March To Mobile • No more audience growth on web. • Mobile > Web audience since mid-13.
  • Revenue follows audience • Facebook (canvas) game revenue 2013: $4B – Expected to grow to $5B in 2014 – Growth driven by increased monetization • Mobile game revenue 2013 (all platforms): $15B+ – Expected to grow to $20B+ in 2014 – Growth driven by audience growth and improved monetization, retention
  • The advent of the Mega Mobile Game • $1B+ annual revenue on Mobile/Tablets (all platforms - iOS, Android, Amazon, Microsoft) – Puzzles & Dragons (GungHo) - $6-7M/day, mostly Asia – Candy Crush (King) - $4M/day – Clash of Clans (Supercell) - $4M/day • $100M+ annual revenue on Mobile/Tablets – Game of War (MachineZone) - $2M/day – Hay Day (Supercell) - $1.5M/day – Farm Heroes Saga (King) - $1M/day – Boom Beach (Supercell) - $800K/day – Big Fish Casino (Big Fish Games) - $300K/day • For comparison: biggest Facebook (canvas) games – DoubleDown Casino (IGT) - $500K/day – Zynga Poker (Zynga) - $400K/day – FarmVille 2 (Zynga) - $350K/day – Slotomania (Caesars Interactive/Playtika) - $250K/day
  • RMG vs Social Casino • Very different products, very different audiences! – Gambling thrill vs me-time/entertainment – Social players optimize their gameplay for time (not cash) – Key driver for spending real money = buy more time in the game • Will social casino die when US allows RMG? Not likely. – Lots of players from UK, Italy, Sweden, … play social casino. – No drop in social players from Nevada, New Jersey since markets opened.
  • In some markets, Social > RMG
  • RMG on Facebook • UK only so far. • 1st app launched Aug-12: Gamesys (Slots Friendzy, later Bingo Friendzy was added) • After that: – Dec-12: 888 with Magic888 (casino) and Bingo Appy – Feb-13: Bonza Gaming with Bonza Slots – July-13: PaddyPower social RMG betting app soft-launched (full commercial launch May-14) – Jan-14: Zynga Poker RMG soft-launch (still in Beta)
  • Some negative press initially (Daily Mail) in 2012… But once it became clear that Facebook RMG apps where not targeting or attracting under-age players, and where ran by responsible, professional operators, tabloids calmed down.
  • • Real-money social gaming startup, °Sept 2012 • 50/50 joint-venture Plumbee and Unibet – Investment $7M to date • UK-only for now, AGCC-licensed. • Stand-alone business with its own offices in London and Guernsey (Channel Islands) • Team of 16 today: engineers, product, marketing, finance, analytics, customer support…
  • • Products: – Bonza Slots launched February 2013 on Facebook (canvas) - 3rd RMG app on Facebook, after Gamesys and 888 – Bonza Casino launched Dec-13 on Facebook (canvas) – slots + table games, more ‘premium’ positioning (vs more playful/casual for Slots) – Bonza Slots soft-launched on iOS March 2014, launching on Android soon – Shared wallet/account between all apps on FB/Mobile • Since launch: 200K+ app installs, 50K registrations, 20K fans/likes • #1 RMG app on Facebook in audience and revenue
  • iPad and iPhone 18
  • Key learnings so far • It’s hard! Not just porting existing product to FB. – Success comes with months of tinkering, optimizing, A/B testing, … – ‘Proper product development’ – not cheap + requires top talent (engineers, UI/UX, product manager, analytics…) • RMG ecosystem on FB still quite small, some trust/branding issues. • Users are really ‘a blend’ between social gamers and RMG users, which needs to be reflected in product, tone of voice, look & feel. – More casual audience, ‘entertainment-seekers’ – Bonza only got real traction once it introduced ‘fun stuff’ for non- paying users (Tournaments) • Retention is stronger compared to ‘portal’ RMG. – More, better communication channels: real-time notifications, better targeting (more data) • Monetization (ARPU and LTV) in line with casino vertical of multi- product operators.
  • Funnel ‘Traditional online RMG’ Views, clicks: no engagement, no fun (maybe some ‘pointless’ free-play) Registered users: no engagement, no fun, some ‘pointless’ free-play. Some up- sell. Paying users: full access to all products, games Don’t care Don’t care/upsell $$!
  • Funnel Social Casino Views, clicks: full access to product, try to engage from 1st minute (e.g. tutorial) + drivers of viral growth. Engaged users: full access to product, lots of free content and features + viral growth. Paying users: full access to all products, games + extra boosters/content/features, more time/currency Happy players + viral growth! Happy players + viral! $$!
  • Funnel Social RMG Views, clicks: offer some fun, some access to product, games: e.g. free-play (trial) + specific features/content for free users (Free Tournaments!) Key driver for viral/organic growth! Registered users: as above + up- sell to real-money product + key driver for viral/organic growth! Paying users: full access to all products, games Showcase fun, games + viral growth Happy players + upsell + viral growth $$!
  • Bonza Bonus Wheel 24 • Adds value to each Tournament play • Themes to go with each wheel
  • 40%+ of Bonza Slots installs are non-paid!
  • @raf_keustermans