Social casinos vs online casinos

Social casinos vs online casinos

Social games began to actively develop during the Facebook era. Among them are hits like FarmVille and Words with Friends. Today, the most profitable segment of this industry is no longer farms or puzzles, but social casinos.

How social casinos work

• Full set of games: slots, poker, blackjack, bingo, roulette, baccarat
• User experience is almost identical to online casinos
• Leaderboards, tournaments, and player retention mechanics
• Virtual chips are used instead of real money
• Cashing out winnings is impossible

Since winnings cannot be cashed out, social casinos are generally not classified as gambling. This allows such products to operate in jurisdictions where iGaming with real stakes is banned or strictly regulated.

Monetization model

• Free daily credits
• In-game purchases when credits run out
• Bundled offers and upsells (e.g., $10 for 100 chips or $11 for 200)
• Only 1–5% of users pay
• Meanwhile, about 15% of paying players generate up to 50% of all revenue

Elements such as leaderboards, tournaments, chat, and level systems help retain players and encourage them to make in-app purchases.

Market scale

• About $6 billion in 2021
• Forecast — almost $10 billion by 2028
• Average annual growth approximately 6%

58% social casino players have tried gambling with real money at least once

Regulatory status

According to the UK Gambling Commission, social casino games are not subject to gambling regulation, provided that operators adhere to principles of social responsibility.

No possibility to withdraw money, therefore the game is not classified as gambling.

Conclusion

Social casinos largely mimic the mechanics of real money gambling, but without the possibility of withdrawing winnings. Thanks to this, they remain outside most gambling regulations, while forming similar gaming habits among users.

For operators, this is a relatively safe way to enter regulated or restricted markets, as well as a channel for attracting players to licensed iGaming.