Inside Asian Gaming delves into the unique world of social casinos, from their enormous scope for growth to the regulatory challenges that lie ahead.
In an industry whose very existence relies on relentless innovation and the ability to pivot, there is likely no greater indicator of what the future holds than the growing social casino sector.
Once considered a cheap, no-frills alternative to the traditional casino floor, social casinos have in recent years emerged as a financial force in their own right – so much so that leading industry suppliers have completely reworked their business models to incorporate the genre as a key component in of their organizational structure.
Light & Wonder stands as a prime example. In 2021, the company – then known as Scientific Games – decided to divest its lottery and sports betting arms in order to deleverage and provide scope to invest more into digital. This included some Real Money Gaming but also social casino; most notably the full acquisition of its social casino arm SciPlay in a US$485 million deal.
Today, Light & Wonder’s operations revolve around three core segments – Gaming, iGaming and SciPlay – with the latter contributing US$206 million in revenues (representing around 25% of consolidated group revenues) in the September 2024 quarter. This was, the company said, the fourth straight quarter of SciPlay revenues over US$200 million.
It’s little wonder traditional gaming suppliers like Light & Wonder, Aristocrat and Konami are investing so heavily in the social casino experience. From a global market value of around US$6.2 billion in 2020, social casinos are expected to generate around US$8.7 billion in 2025, growing to as big as US$12.5 billion by 2032, with an annual compound growth rate above 6%, according to a recent report by Business Research Insights.
“The social casino games market will increase as a result of factors such as the gaming industry’s rapid expansion, the rising number of mobile gamers, the rising number of smart devices and connections, the increasing penetration of internet users, and the soaring number of social media users,” the report states. “Increased investment in mobile gaming advertising, accelerated implementation of fifth-generation wireless (5G) technology, acceptance of augmented reality/virtual reality and increased use of cloud gaming are a few prominent trends.”
What exactly are social casinos? Traditionally, they are exclusively social platforms whereby players can enjoy a variety of casino-style games that do not offer the opportunity to win cash or any other prizes of value. They are, strictly speaking, played for entertainment rather than financial gain and as such can be commonly found on app stores like Google Play.
However, there is a more controversial “sweepstakes” model, which has also been gaining popularity in recent times, through which players can exchange in-game coins for prizes or in some cases real money. Critics say this places sweepstakes style casinos into the realm of gambling games. More on that later.
While the traditional “entertainment only” model does not require players to deposit money nor pay any out, it remains incredibly lucrative due to the many “optional purchases” on offer. Social casinos typically provide players with a limited amount of virtual coins or credits that are topped up after a designated amount of time, but they also enable players to purchase additional coins if they wish to keep playing without having to wait for them to refill.

Other optional purchase items can include tier boosts that provide additional benefits, subscriptions offering exclusive bonuses or rewards, VIP programs with better perks, or flash sales for discounted bundles.
“Many players are motivated to ‘show off’ their winnings or rankings, and some will spend money to stay ahead of their friends on the leaderboard,” explains Shaun McCamley, a long-time industry executive and consultant who is also chair of game development firm Gameworkz – itself a rising social casino developer in Asia.
“The social gaming model primarily relies on high volume. Most players spend little to nothing, while a small group splurge hundreds or even thousands of dollars.”
Players who are drawn to the social casino style of game are, McCamley adds, seeking a social experience through gamification features such as the ability to engage in real-time chat while playing their favorite games for free. The ability to complete missions, climb leaderboards, join clubs and earn loyalty points is also a huge draw.
“Put simply, players seek entertainment, social interaction and a sense of progress. Social casinos thrive when they strike the right balance between these essential elements of having a fun, rewarding experience.
“Operators don’t pressure players to spend money but instead entice them with appealing perks, personalized experiences and exclusive offerings.
“Games that feel fresh, fair and exciting, especially when combined with substantial rewards and social connection, are the ones that keep players coming back for more.”
Danny Moy, Chief Strategy Officer for Light & Wonder’s SciPlay, notes that the convenience of social casinos is what makes them unique.
“Players can enjoy their favorite slot games for free, anytime, anywhere, without the need to travel to a physical casino,” he explains.
“The beauty of social casino gaming lies in its diversity of appeal. Some players thrive on the social aspects, enjoying the opportunity to connect with friends, share achievements and compete on leaderboards. Others are drawn to the engaging collection and progression systems we’ve implemented. And many appreciate the relaxing and entertaining escape these games provide, offering a flexible and enjoyable experience that can be enjoyed for a few minutes or an extended period.
“Ultimately, we’re not just creating games; we’re building daily entertainment destinations that become an integral part of our players’ lives. By constantly introducing new content, hosting exciting events and crafting engaging narratives, we ensure there’s always something fresh and exciting for players to discover. This combination of accessibility, continuous evolution and genuine entertainment value is what makes social casino games so appealing to millions worldwide.”

That social casinos are becoming such core components of suppliers’ offerings should come as no surprise. McCamley, whose Gameworkz company operates a B2B model for operators looking to add social casino to their existing portfolio, points to the 2016 sale by Caesars Entertainment of social casino brand Playtika – which it acquired for US$92 million in 2011 – as an early example of the industry’s massive potential.
“They made no significant changes to the platform’s presentation and functionalities and sold it three years later to a Chinese consortium for US$4.4 billion,” he recalls.
Little wonder then that the segment is now contributing upwards of 30% to the bottom line of companies like Light & Wonder and Aristocrat, the latter of which generated segment revenue of US$1.75 billion through Pixel United in FY24. Profit of US$634 million was achieved at a healthy 36.3% margin.
Driving the path forward for these traditional slot machine developers is the omni-channel approach they have adopted across their gaming, iGaming and social casino segments by which content developed for one segment is shared and adopted across all.
Light & Wonder, in its 3Q24 results presentation, cited “cross-pollinating across [our] portfolio of games through [our] proprietary game algorithm” as well as “Expanding our omni-channel presence with the successful global rollout of key franchises globally, such as Huff n’ Puff.”
Explains Moy, “The acquisition [of SciPlay] by Light & Wonder in 2023 opened exciting new avenues for growth. We’re witnessing a fascinating cross-pollination between social and traditional casino gaming. For example, we’ve successfully ported original slot content from [social casino brand] Jackpot Party to land-based casinos, such as our popular Hot Hot Blazing Luck slot.”
This omni-channel approach is also starting to blur the lines between the social casino and Real Money Gaming sectors.
Although McCamley points to a clear distinction between the two groups of players – real money customers fork out 10 times more in-game than their social counterparts on a monthly basis, he says – Moy believes the relationship has become “increasingly dynamic”.
“While they cater to distinct player needs and adhere to different regulatory frameworks, there are valuable opportunities for cross-platform initiatives between the two sectors,” he explains.
“We’ve successfully brought some of Light & Wonder’s most popular land-based gaming slots into our social casino environment, adapting them for free-to-play while preserving their core appeal. Even more excitingly, this relationship works both ways. We have been developing original social casino content [that] has been successfully ported to Light & Wonder’s land-based machines worldwide.”
Naturally, such crossover has begun attracting the attention of gaming regulators, and the key challenge for social casino developers moving forward will be how they navigate the raft of regulatory obstacles that are likely to come their way.
Vietnam stands as an early example, having introduced in December a raft of new regulations governing online games, including a prohibition on licensing casino-style games that show playing cards or card-based imagery.
Singapore’s Gambling Regulatory Authority and the UK Gambling Commission have made it clear they are monitoring the social casino space, while the Australian Communications and Media Authority (ACMA) released in March 2023 a market analysis of the industry which noted: “Social casinos are not regulated under the Interactive Gambling Act 2001, which is the primary legislation governing online gambling in Australia. This is because they do not meet the definition of a gambling service, which requires games to be ‘played for money or anything else of value’.
“However, the rise of social casinos is an example of the ongoing convergence of gaming and gambling activities, particularly online, and the need for policy makers and regulators to keep abreast of trends and developments in the market.”
In a recent report titled “The Mobile Economy Asia Pacific 2024”, the GSMA – a global organization that aims to bring together the world’s mobile ecosystem – noted that the growth rate of the contribution of mobile technologies to Asia-Pacific economies through 2030 is expected to reach 15%, outpacing the average global growth rate of 12% due to the greater speed of 5G penetration in the region. Such technologies currently contribute 5.3% of GDP across Asia-Pacific, worth some US$880 billion.
Likewise, ACMA’s report found that Australians spent AU$302 million on social slots games in 2021, making it the top mobile game genre by consumer spend.
Notably, it also said the Asia-Pacific region was expected to see the fastest growth in social casinos between 2020 and 2026 due to the growing use of smartphones, easier internet access and growing digitalization in the region.
China, South Korea and Japan were named as the top three markets in the region and of increasing interest to game developers.
“Previously, the complexities of the APAC markets’ non-homogenous approach to payment, infrastructure, languages and regulations compared to North America discouraged global operators from entering the market,” the ACMA report states.
“With the success of domestic social casino games in China, South Korea and Japan, global operators are now entering the market by localizing games with repackaged user interfaces and cultural themes. This includes games mimicking the look, feel and sounds of local land-based casinos to give users a sense of cultural familiarity.”
There is, ACMA added, “evidence that in-game, small, tangible rewards are used as a means to enhance betting intensity in social casino games, with potential to increase in-game spending. However, it is unclear what correlation this may have with real world gambling.”
In comments to Inside Asian Gaming, a spokesperson for industry lobby group the International Social Games Association (ISGA) insisted that such correlation is limited, describing social casino and RMG as belonging to two different industries.
“Social casino games are part of the free-to-play global video games ecosystem with no real-money rewards, whereas real-money gambling games are, as their name suggests, part of the gambling industry allowing players to stake real money for a chance to win and withdraw cash,” the spokesperson said. “While general game types may appear to be similar, the number of options, the outcomes and the underlying purpose for social casino games and real-money gambling games are very different.
“It is important to underscore that social casino-style games offer a fundamentally different end-user proposition versus online real-money gambling games in that social casino games are free-to-play and, as with all social games, players cannot bet or win real money, real-world rewards or prizes. Therefore, social casino games cannot be defined as gambling.”
Suppliers IAG spoke to, including Aristocrat and Light & Wonder, also emphasized that they do not offer the sweepstakes form of social casino and take their responsible gambling obligations seriously by ensuring they offer a free-to-play mobile gaming experience.
McCamley adds that his company provides its clients with enhanced age verification processes to ensure that minors do not access its social casino games, as well as a self-exclusion program.
“We firmly believe that if the industry embraces responsible gaming practices, social casinos can enhance their reputation, foster trust with users and align with regulators’ evolving expectations,” McCamley said.
Notes the ISGA, “[We are] a global leader in promoting responsible standards and safe play by consumers and industry self-regulation, including through the widespread adoption of the ISGA’s Best Practice Principles, which has proven to be extremely effective as we strive to ensure a safe, positive and secure games experience for all players.
“As the industry body for social games, we support open industry-government dialogue and welcome the opportunity to engage with regulators, especially as we seek to ensure widespread understanding of this genre of video game, in which no real money or prizes can be won, meaning that players cannot gamble, and the enjoyment derived from playing these games is purely for entertainment.
“With respect to social casino games and any title designed for adult players, it’s important to note that the ISGA’s Best Practice Principles extend to include specific advertising requirements, clear and consistent age ratings, the provision of information on parental controls and other safety features to help ensure players of these games are educated and informed, including on the in-game and device controls available, and that these games are only accessed by adults.”
In the US, where the “sweepstakes” style social casinos are flourishing, industry lobby group the American Gaming Association (AGA) also wants lawmakers to step in.
“The American Gaming Association is dedicated to supporting the legal, regulated gaming industry by addressing the threats posed by illegal and unregulated markets,” the AGA’s SVP of Government Relations, Chris Cylke, told IAG.
“Lacking regulatory oversight, sweepstakes casinos are not required to promote responsible gaming nor provide consumer protection measures.
“Social gaming offers an entertainment experience where no cash or cash prizes can be won, whereas so-called sweepstakes casinos and sportsbooks harness the social model and add an additional layer to provide a real money gambling experience. In doing so, these operators avoid licensing, testing, and paying gaming taxes.
“Fortunately, gaming regulators in US jurisdictions have been unpersuaded by this latest sweepstakes model so far, and several have determined it to be illegal gambling. It is critical for every state gaming regulator and attorney general to scrutinize the legality of sweepstakes casinos and take decisive action against any violations.”
What’s clear is that the rapid expansion of the social casino phenomenon isn’t slowing any time soon, with developers continuing to enhance and diversify their games offering in order to optimize player engagement, retention and monetization.
Central to this are “Live Ops” – in-game events that offer players a series of milestones to achieve, offering various rewards along the way.
“In today’s competitive landscape, a dedicated, talented and proactive Live Ops team is arguably the most crucial asset for any successful social casino game,” says Moy, “While players may initially be drawn to the core slot gameplay … it is the engaging meta-layers that truly keep them coming back.
“Our Live Ops teams are responsible for creating the compelling experiences we’ve discussed – the collection systems, special events, character-driven narratives and social features that provide players with long-term goals and a sense of progression.
“It’s crucial to remember that all monetization features should enhance the player experience, not hinder it. Successful free-to-play games avoid ‘pay-to-win’ mechanics or anything that makes players feel pressured to spend. Instead, they focus on offering valuable and enjoyable experiences, such as bonus coins that extend playtime, special features that add variety, or unique items that allow players to personalize their gameplay.”
Adds McCamley, “The key to success in today’s markets is for social platforms to provide a variety of games, including not only slots but also puzzle games, Ludo, role-playing games and similar options.
“It’s interesting to note that even in diverse and restrictive countries such as Saudi Arabia, there is a significant interest in social gaming, albeit without any casino-style games.”
One thing’s for sure, social casinos aren’t slowing down anytime soon.
“We will continue to focus on enhancing player experiences, introducing new and exciting features, and delivering high-quality entertainment that resonates with our audience,” says Moy.
“We believe there is significant continued opportunity for growth and innovation within the social casino space.”