Casino Games - Raf Keustermans

download Casino Games - Raf Keustermans

If you can't read please download the document

Transcript of Casino Games - Raf Keustermans

  1. 1. Raf Keustermans, CEO & co-founder Plumbee @raf_keustermans - www.plumbee.com
  2. 2. July 2011, London founded by 3 ex EA/Playfish execs. 60+ staff today Top-10 social casino company in revenue and audience 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)
  3. 3. Social Casino Status 2014 Industry growing up fast, becoming mature $2.7B estimated revenue in 2014, $3B+ in 2015 50%+ market share owned by Top-5 Caesars Interactive social games revenue 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
  4. 4. Slots category dominates social casino 4 Source: SuperData Research Pure Slots account for 38% of social casino revenue and 32% of audience in total However, most of the casino category revenue comes from Slots (e.g. DoubleDown generates 70%+ of revenue from Slots) Slots + Casino represents 76% of revenue and 55% of audience Bingo accounts for 13% of revenue and 14% of audience in the category
  5. 5. May-14: Top 10 social casino companies have 70% market share (revenue). (Source: Eilers Research). Top 5 has 53% share. Top-5 has 53% market share 5
  6. 6. The March To Mobile No more audience growth on web (Fb canvas). Mobile > Web audience since mid-13.
  7. 7. Social Casino M&A 2010: 888.com 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 Montral 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 2014: Imperus Technologies buys Diwip (Best Casino) for $100M 2014: Churchill Downs buys Big Fish for $885M $2B+ in the last 4 years
  8. 8. 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
  9. 9. 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.
  10. 10. In some markets, Social > RMG
  11. 11. Q&@raf_keustermans www.plumbee.com