In theory, it seems like social gaming and real money online poker draw two different crowds. On one hand, you have the social gamers who buy non-redeemable chips to play casino games in a fun, laid-back atmosphere. Then there’s the real money crowd, which hopes to increase their bankroll and win profits/jackpots through iGaming.
But as clear as this distinction may seem, social gaming is proving to be more of a threat to iGaming growth than Sheldon Adelson and his Restoration of America’s Wire Act (RAWA). Let’s discuss this threat deeper along with the impact that could have on the casino industry.
The Industry recognizes Social Gaming as Competition
The 2014 US Online Gaming (USOG) Forum recently took place at Caesars Palace in Las Vegas. And one of the biggest topics on the agenda was the rise of social gaming. OnlinePokerReport’s Chris Grove was in attendance at USOG and noted the heavy emphasis placed on this subject.
According to Grove, the prevailing thought is that social games like Candy Crush and Zynga Poker compete directly with real money sites for the consumer’s time and dollar. Moreover, those who try both types of gaming are given a very similar experience.
The big advantages that Social Gaming enjoys
What’s alarming to US iGaming enthusiasts is how social gaming can operate throughout America virtually unchecked. Thanks to loopholes in laws, where social sites only offer prizes rather than monetary rewards, they can accept player deposits all over the United States. Meanwhile, real money sites like WSOP.com and Party Borgata can only operate within specific state lines.
Another dilemma here is that there’s a negative connotation attached to online gambling. The activity is often thought to lead to addiction by the general population, even though studies show that a very small percentage of gamblers have a problem. Social gaming, on the other hand, is merely thought to be fun and largely escapes the addiction tag. But as noted at USOG, even social gamers can spend big money, such as one player who’s spent $250,000 at PurePlay Poker.
How should the situation be handled?
Obviously social poker and casino games aren’t going away any time soon. In fact, the multi-billion dollar industry continues growing every year. So if the real money iGaming industry wants to keep pace in the US, they need to incorporate more fun, social elements into their offerings.
This is already being done with slots to some extent, where 3D graphics, animations and interactive bonus rounds are being included. But it wouldn’t hurt US online casinos to continue down this path by supplementing their traditional offerings (i.e. blackjack, poker, roulette) with more types of social gaming.