Social gambling can be a little confusing to understand as one may confuse it with gambling while socializing with friends and strangers. While there is that kind of social gambling too, the social gambling that we will be talking about here has a different definition.
Social gambling means playing casino games on online platforms which also offer players to communicate and socialize with each other. These online games are accessible through mobile phones and desktops and have more freedom over the legal compliances and regulations. Social gambling and traditional gambling differ in many aspects.
Traditional gambling takes place in a land-based casino while social gambling is entirely online and offers to reach to a wide community of players. Social gambling is also free to play with friends without any prejudice. The social gambling platforms do not make money from the bets made by players, but from the perks, upgrades, and special themes that they introduce during the seasons.
How social gambling generates revenue
Virtual Sale
There are several methods of virtual sales, such as virtual coins, upgrades, power-ups, accessories, and even premium themes in the games. While the applications are free to play, such in-app purchases create better opportunities for the players and also offer them a different feel to the game.
Advertising
You can find online ads appearing everywhere on the internet, from search engines to free to use apps. These advertisements are a great way for free platforms to generate revenue. They do this by offering bonuses to the players for watching and clicking on an advertisement.
Product placement
Similar to a movie or a TV show, the developers use strategies of product placement to promote their clients and get paid for it. Depending upon how popular the game gets, the revenue received by the product placement also increases.
Lead generation
This is another advertising element which offers bonuses, free gifts, and other rewards for signing up for a particular website or complete a survey. The discounts attract the players and help the game developers earn revenue from their clients.
Why social gambling is allowed?
Even though social gambling games offer the same kind of experience as traditional gambling, they are not played with money. This is the main reason why even after being addictive, social gambling games are accepted as legal.
There is a heated debate on the virtual goods in the games which are bought for money through in-app purchases and whether it should be allowed along with social gambling. While many see it as similar, if not identical to traditional gambling, others feel that if one cannot take out the virtual wins for profits, it should not be considered illegal.
