3. Definition of Social Games
• Games accessed via a social network account
• Games
– with symbolic rewards and
– freemium access
– via an established distribution network account
– that require the player‘s permission and the use of
player links to a social graph for promotion,
retention and gameplay
3(c) Kapsner & Schmid, Brandl & Talos
6. Social Game Player Gender
Source: Data from www.appdata.com (1 November 2012); own analysis
6(c) Kapsner & Schmid, Brandl & Talos
10%
37% 41%
63% 67% 68%
74%
81%
95%
90%
63% 59%
37% 33% 32%
26%
19%
5%
0%
20%
40%
60%
80%
100%
Top 11 - Be
a Football
Manager
Texas
Hold'Em
Poker
Okey CityVille Slotomania Words with
Friends
Bejeweled
Blitz
Bubble
Island
Mall World
%ofAudience
Male
Female
7. Social Game Player Age
7(c) Kapsner & Schmid, Brandl & Talos
Source: Data from www.appdata.com (1 November 2012); own analysis
35% 34%
26%
13%
18%
9% 12%
7% 3%
30%
27%
27%
21%
20%
18%
16%
12%
9%
25%
23%
25%
28% 23%
27% 22%
22%
20%
7%
10%
12%
19% 18%
21%
21%
25%
24%
2%
4%
6%
12% 13%
15%
17%
20%
24%
1% 2% 4% 7% 8% 10% 12% 14%
20%
0%
20%
40%
60%
80%
100%
Top 11 - Be
a Football
Manager
Mall World Okey Texas
Hold'Em
Poker
CityVille Words with
Friends
Bubble
Island
Bejeweled
Blitz
Slotomania
%ofAudience
Over 55
46 to 55
36 to 45
26 to 35
18 to 25
Under 18
8. Social Game Player Location
8(c) Kapsner & Schmid, Brandl & Talos
Source: Data from www.appdata.com (1 November 2012); own analysis
85%
46% 43%
20% 18% 17%
10%
15%
54% 57%
80% 82% 83%
90%
100% 100%
0%
20%
40%
60%
80%
100%
Words with
Friends
Bejeweled
Blitz
Slotomania Mall World CityVille Texas
Hold'Em
Poker
Bubble
Island
Top 11 - Be
a Football
Manager
Okey
%ofAudience
Other
US
9. Social Game Player Profile by App
(c) Kapsner & Schmid, Brandl & Talos 9
* Reach measured as MAU (App) / MAU (App with highest reach); Texas HoldEm Poker with MAU of 33 m.
** Stickiness measured as DAU/MAU
Source: www.appdata.com (November 2012); own analysis
0%
25%
50%
75%
100%
% Female
% >35 yrs.
% US% Reach*
% Stickiness**
Mall World
Top 11 - Be a Football
Manager
Texas HoldEm Poker
Slotomania
11. Monetization by Genre
Social Gaming Genres
RPG,
Gambling,
Poker
Hidden Object,
Adventure,
Tournaments
Puzzle,
Arcade,
Caretaking,
Simulations
Daily Average Revenue per User (US Cent)*
1 2 3 4 5 6 7 8 9 10
* Expected average daily revenue per daily active user
Source: Social Gaming Report 2012, The Casual Games Association
11(c) Kapsner & Schmid, Brandl & Talos
13. Monetization vs. Gambling
* Source I: Values for average paying players for QIV 2011 taken from Zynga Inc. and bwin.party digital entertainment plc. Illustrative only.
** Source II: Values for intense users estimated with ratios of 50% of revenues / 15% of paying players for Social Gaming and 80% of revenues / 10% of paying players for
online gambling. Values taken across all products and genres.
0.5 m 243 US$ Intense Paying Players**
Online Gambling Operator
160 US$1.8 mAverage
1,280 US$0.2 mIntense
Social Gaming Operator
3.5 m 73 US$ Average Paying Players*
# of Paying Players in a Quarter Average Revenue Per Paying Player
13(c) Kapsner & Schmid, Brandl & Talos
15. Who Needs Protection?
• The vulnerable
– Minors
– Problem players
• The consumer
• The fair competition
(c) Kapsner & Schmid, Brandl & Talos 15
16. Potentially Problematic Apps
• Targeting vulnerable players
– Gambling Genre Social Games
– Funnels towards real money gambling
– “Always on” – mobile devices
• Offering “payouts” of more than 100%
• “Rigged” games and equipment
• … but: what are the issues specifically
adhering to the social gaming versions?
(c) Kapsner & Schmid, Brandl & Talos 16
17. Gambling Genre Games …
Slots Poker Bingo
Blackjack Craps Keno
Betting Gammon Other
17(c) Kapsner & Schmid, Brandl & Talos
18. … Are Not Gambling …
County /
Criteria
Element of
Chance
Consider-
ation*
Prize*
Entrepren.
Activity
Public
Offer
Austria X n.a.
France X n.a. n.a.
Germany X n.a.
Italy X n.a. n.a.
Spain X n.a. n.a.
Great Britain n.a. X n.a. n.a.
Malta X n.a. n.a.
18(c) Kapsner & Schmid, Brandl & Talos
* Consideration and Prize in the sense of being money or money’s worth
19. Game XYZ
… As Prizes Are Not Money’s Worth!
(c) Kapsner & Schmid, Brandl & Talos 19
In-Game Account
Virtual Goods
In-Game
Currency
Player B
In-Game Account
Virtual Goods
In-Game
Currency
Player A
Other Games,
Goods or
Services that
are Money’s
Worth
Money
O.k.
???
K.o.
20. Social Gaming as Funnel to Gambling?
Social
Gaming
Gambling
Genre
Social
Gambling
Online
Gambling
Genres Non-Gambling Gambling Gambling Gambling
Information Social Graph Social Graph Social Graph + Settings
User Group Open Open Permeable Closed
User acquisition Viral Viral Viral “Classical”
Player Identification Yes Yes Yes Yes
Identity Verification No No Yes Yes
Age Verification No No Yes Yes
Monetization Freemium Freemium Stake to Lose Stake to Lose
20(c) Kapsner & Schmid, Brandl & Talos
21. So ... Is This a Good Idea?
(c) Kapsner & Schmid, Brandl & Talos 21
* Pictures taken from Farmville (Zynga Inc., 2013) and screenshots of Zynga Plus Casino (Zynga Inc., Elektraworks Ltd. 2013); available only to players older than 18 in the UK.
= Gambling Genre Social Gaming = Gambling
= Simulation Genre Social Gaming
• Redirect
• Download
• Registration
• Pay-in
24. Five Steps to Self-Regulation
• Disclaimers and warnings
• Transparent information
• Certification
• Voluntary industry standards
• Mandatory industry standards
• … backed by empirical evidence!
24(c) Kapsner & Schmid, Brandl & Talos
25. Typical Protection Measures
• Age limits
• Time limits / clocks
• Spending / staking limits
• Self blocking
• Dedicated help lines
• Separate sign-on
• Know your customer requirements
• Third party verification
(c) Kapsner & Schmid, Brandl & Talos 25
