MASTERMINDS

SOCIAL MEDIA AND ONLINE GAMING:The Rise of Social Gaming

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Speaker: Charles HarperVice President of Business Development

DOUBLEDOWN INTERACTIVE

Social Media & Online Gaming:

The Rise of Social Gaming

Once upon a time…. One Year Ago

Source: Mashable, October 2011

Casual Games + Social Network Billions and Billions

Source: Mashable, October 2011

Everybody plays games!

Source: Mashable, October 2011

THAT WAS THEN, THIS IS NOW…

Social Gaming Snapshot Today

•  Social Casino Games will reach $1.6 Billion this year •  Social Casino Games growing to $2.4 Billion in 2015 •  Social Casino Gaming revenue in the US alone hit 64.7 Million in

July 2012 •  Social Gaming MAUs expected to hit 33.4% of all Social Games

player by 2013 •  Slot players outspend Table Game Players 3.5X1 •  Slot player ARPPU is almost $20 higher than Social Poker ARPPU

(June/July 2012) •  The Social Casino audience has doubled since 2010

Superdata “Social Game Metrics” study, August 2012

Slot games are big on Facebook Facebook Daily Active Users

Slingo by Zynga – 2.9m Slotomania by Caesars – 2.1m DoubleDown Casino by IGT – 1.5m Games By GSN Game Show Network – 1.3m Lucky Slots by Blue Shell Games – 840,000

Source: AppData.com (as of 9/19/12)

Social Gaming Vs. Online Gambling

•  More than 235M MAU’s playing Facebook games*

•  The social gaming market is expected to grow to $5B by 2015**

•  There are 53.4M people gambling online worldwide***

Sources: *Mark Zuckerberg at TechCrunch Disrupt’, 8/12 **Business Insider ,4/11; ***Superdata, 8/12

The Rise Of Social Gaming…

•  Players demand – A meta-game – Social experiences - they can play with their

friends – More casual, less threatening environments to

play

The Future

•  Online gambling will fundamentally change to reach the larger audience

•  Sites will become more like social gaming sites with wagering… or social gaming sites will become gambling sites

•  Gambling sites will no longer be narrowly focused

Current Online Gambling Sites

Popular Social Game Sites

Online Gambling vs. Social Gaming

Inviting Simple Social Friendly Easy Unthreatening Fun

Off-putting Complex Solitary Unfriendly Hard Threatening Not Fun

Online Gambling Becomes Social

Summary

•  Online gambling will become more like social gaming

•  The rapid growth of online casino games can’t be ignored, by 2015 they will represent 50% of social gaming revenue

Questions?

Questions?

Charles Harper, Vice President of Business Development, DoubleDown Interactive / IGT