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  • Social Gaming (Part 2)

Social Gaming (Part 2): Important things you need to know

Social Gaming is different from Traditional Gambling. It is these differences which enable us to offer Social Gaming to a wider set of end users without having to worry about Legal Compliances and Regulations.

The key differences between the two are:

  1. While Traditional Gambling can be Land Based, Social Gaming is purely Online.
  2.  Social Gaming offers a Community Vibe.
  3.  Social Gaming is Shareable and has no negative views.
  4.  Social Gaming is FREE to Play with limited Paid Options (FREEMIUM).
  5. Social Gaming allows its users to play with a closed set of people (Friends and  
    Family) and that too without any prejudice.
  6. Social Gaming Applications don’t make money from players betting on outcomes.
    They charge for perks, add-ons, and upgrades (if needed).

Social Gaming is not just meant for entertaining the end users. These applications do offer a highly lucrative and alternate source of Revenue Generation. Some of the core ways to do so are via the following:

  1.  Virtual Sale: This covers a wide assortment of things. This can be done via chips, virtual coins, power-ups, profile accessories and even in some cases via premium content sale. While the applications are always available for free play, these virtual items aid amateurs and novices to perform better.
  2. Advertising: This can include a banner or contextual advertising, much like you’d see on websites, apps on your phone, on Google’s search engine, and more. Ad inventory is then provided to the advertisers and when any user clicks on the ad, money is earned.
  3. Product Placement: This is on the same lines as used in movies or TV shows. A Social Gaming app can inject a product or a brand into the gameplay in some way. In-game product placements can cost hundreds of thousands of dollars depending on the placement and how popular (how many users, activity, etc.) the game is.
  4. Lead Generation: Lead generation majorly goes hand in hand with advertising. However, what’s unique about lead generation in social gambling is you’ll see offers to sign up for goods or services in exchange for virtual gifts – some form of advancement or in-game perk.

While these are just a few popular ways to monetize a FREE Social Gaming Application, there exist far more creative and innovative ways to do the same.

The main debate to have is why is Social Gaming Legal? It offers the same experience to the users as a traditional gambling app and also has the same addictive qualities and yet it is allowed to be offered to everyone.

The easiest response to this question is “because it doesn’t offer any Real Money prizes or rewards and the rewards which are offered have no way to be converted into Actual Money”. As per the Wire Act and UIGEA, the law is clear, as long as there is NO CASH Pay-outs, the game is legal.

Also, at no point is the user complied to Invest Money. They can keep playing for free for as long as they want.  And that seems to be the one key difference – the very reason why you can play social casino games legally.

Based on our experience and given the current positioning, we recommend building a world-class application with extensive use of Social Gaming components. Our core differentiating element here would be the use of Sports as the core medium for all our offerings.

What we propose is a simple yet intriguing Online Sports Predicative Application with gameplay elements like the one used by most Sports Betting or Sportsbook, but with a Social interaction layer on top of it.

Most Sportsbook or Sports Betting applications (Paid or otherwise) are meant to offer a secluded user experience. Users have no need or no way to interact with other similar users. While this might work in other geographies (mainly EU and the UK), Users in the USA are more inclined towards Social Gaming (the best example here is the popularity that DFS has achieved).

About Techracers
Techracers leads the space when it comes to fantasy sports and sports betting platforms for  sports and gaming start-ups, iGaming operators and media houses. Our iGaming team specializes in sports betting, social gaming and fantasy sports design and development.

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