This document discusses the mergers and acquisitions in the social casino gaming industry from 2010 to 2016, totaling nearly $3 billion. It also notes the increasing trend of social casino games licensing popular intellectual properties like Wizard of Oz, Wheel of Fortune, and Marvel characters. Finally, it analyzes the challenges of generating sufficient revenue and lifetime value from users to recoup a $10 user acquisition cost through in-app purchases in social casino games.

1. Digging Down into Social Casino 2016

2. About me
• Social and real-money gaming background:
• Unibet – head of marketing, 2005-2008
• EA – Pogo.com – EMEA marketing director, 2008-2009
• EA – Playfish – Global marketing director, 2009-2010
• Independent Consultant for Social Point, Kobojo, MegaZebra… ,2010-2011
• Plumbee – co-founder and CEO, 2011 – present
• Plumbee
• London-based social casino studio, team of 50
• Mirrorball Slots
• Founding member of ISGA (International Social Games Association)

5. Social Casino M&A 2010-2016
• 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 Montréal 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
• 2015: GSN buys Idle Games (Fresh Deck Poker, undisc)
• 2015: Intertain buys Gamesys (social + real-money) for $800M+
• 2015: AGS buys RocketPlay (undisc)
• 2015: Imperus buys Akamon for $25M
• 2015: Zynga buys Rising Tide Games (undisc)
• 2015: Stride Gaming buys infiApps (Slots Bonanza) for $40M
• 2015: Gaming Realms acquires Slingo social gaming for $18M
Almost $3B in the last 6 years

8. Licensed IP – the new normal in top-100 grossing?
• Social Casino
• Zynga: Wizard of Oz, Princess Bride
• GSN Games: Wheel of Fortune, Deal or
no Deal
• Playstudios: MGM brands
• Storm8: MONOPOLY Bingo, CLUE Bingo
• Ludia: The Price is Right Slots/Bingo
• Kama Games: Manchester Utd Poker
• Non-Casino
• Glu Mobile: Kim Kardashian, RoboCop,
Katy Perry, Taylor Swift…
• Kabam: MARVEL, The Hobbit,
Fast&Furious, LOTR, Hunger Games
• EA: Star Wars, The Simpsons
• Wooga: Futurama
• Scopely: Yahtzee!
• TinyCo: Family Guy
• Backflip: Transformers
• Ludia: Jurassic World, Family Feud, Kung
Fu Pando

9. CPI

10. $10 CPI – what it really means
• With 30% platform fees, 3-7% technical costs, 1% chargeback -> Gross
LTV per use of $14 needed to break even
• Assuming 5% conversion to spenders -> avg LTV of $280 per spender
(with 2% conversion -> $700 per spender). To break even.
• A game with very strong metrics, e.g. 40+% D1 retention, 15+% D30
retention, $0.30 ARPDAU… will struggle to pay back $10 in 12
months.

14. Live Casino

17. Questions?
@raf_keustermans