Delivered at Casual Connect Tel Aviv 2016. The arena of Asia Pacific social casino markets is massive in aggregate, remarkably complex, and across a starkly contrasting range in their development cycles. From the perspectives of genre, channels, social, and player sophistication, what can be taken from existing Western-style social casino games? What can be evolved / adapted? What can’t be? And what are the areas that must be reconsidered from the ground up?
3 Vectors of Social Casino Evolution in Asia Pacific | John B. Lin
1. 1
3 Vectors of Social Casino Evolution in Asia Pacific
John B. Lin
Managing Director
PlayStudios Asia
john@playstudios.asia
2. PlayStudios is a Top 10 global revenue leader in Social Casino
myVEGAS on Facebook myVEGAS Slots on Mobile myVEGAS Blackjack on Mobile
Konami Slots on Mobile POP!Slots on Mobile myVEGAS Lucky Life on Mobile
2
3. Through our proprietary Rewards platform, we offer real world rewards from best-in-
class destinations in casino resorts, travel, and entertainment
3
4. Asia Pacific is by far the largest and fastest growing mobile games arena
worldwide, with 2 of the top 3 largest individual markets globally
CHINA
$6.5bn
+46.5%
$10.0bn
NORTH AMERICA
$6.5bn
+15.1%
Source: NewZoo, Japan MGF, Talking Data 2015 figures
WESTERN EUROPE
$3.7bn
+12.0%
4
JAPAN
$6.2bn
+5.8%
$9.5bn
KOREA
$1.9bn
+8.7%
REST OF APAC
$1.8bn
+69.1%
ANZ
$0.6bn
+12.0%
APAC
$17.0bn
+24.5%
$23.8bn
5. 5Source: Superdata Research
...but Social Casino revenues in Asia Pacific are still only ~1/2 of North America
2016E
ASIA
SOCIAL CASINO
REVENUE
$926mm
2016E
NORTH AMERICA
SOCIAL CASINO REVENUE
$1.7bn
6. The Asia Pacific social casino environment is highly fragmented
CHINA JAPAN KOREA ANZ TAIWAN HK SGP SEA
discovery Independent
Android app
stores
iOS, GPS iOS, GPS iOS, GPS iOS, GPS,
myCard
iOS, GPS iOS, GPS iOS, GPS,
independents
payments WeChat, Alipay,
Carrier
Credit Card Credit Card Credit Card Credit Card,
Pre-paid Card,
Carrier
Credit Card,
Pre-paid Card
Credit Card,
Pre-paid Card,
Carrier
Pre-paid Card,
Carrier, Bank
Transfer
social WeChat LINE Kakao Facebook Facebook,
LINE
Facebook Facebook,
LINE
LINE / Viber /
Tango /
Facebook
language Simplified
Chinese
Japanese Korean English Traditional
Chinese
Traditional
Chinese
English, Trad
Chinese
Thai, Bahasa,
VN
Regulatory Unwritten
sensitivity to
Baccarat and
Slots, licenses
required MOF,
SARFFT
No regulations
or restrictions
on Social
Casino
Licensed and
Highly
regulated
Bet, loss,
purchase limits
No IAP on
house-banked
games
Few regulations
or restrictions
on Social
Casino
Few regulations
or restrictions
on Social
Casino
Few regulations
or restrictions
on Social
Casino
Few regulations
or restrictions
on Social
Casino
Few regulations
or restrictions
on Social
Casino
6
7. 7
The largest markets in Asia Pacific are led by native operators; SEA has been more open and
competitiveChina Japan South
Korea
Australia Taiwan Singapore Malaysia Hong Kong Indonesia Thailand Philippines Vietnam Made in Developer Game
Type
欢乐斗地主·腾讯 1 20 n/a 20 21 16 16 10 20 19 21 22 CN Tencent Landlord
欢乐麻将·腾讯 2 27 n/a 22 27 26 25 17 25 26 22 30 CN Tencent Mahjong
欢乐斗牛·腾讯 3 n/a n/a n/a 19 28 n/a 13 n/a n/a n/a n/a CN Tencent Cards
Mobage 海物語 Slots n/a 1 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a JP Butterfly Corp Slots
CommSeed Slots 30 2 n/a n/a 32 n/a n/a n/a n/a n/a n/a n/a JP
Commseed &
GREE Slots
Tokyo Casino Colopl n/a 3 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a JP Colopl Casino
NET麻雀 n/a 4 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a JP SEGA Mahjong
SLOT魔法少女 n/a 5 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a JP Universal Ent Slots
Neowiz Poker n/a 35 1 30 31 31 29 31 27 25 26 21 KR Neowiz Games Poker
NHN Poker n/a n/a 2 n/a n/a n/a n/a n/a n/a n/a n/a n/a KR NHN Poker
Netmarble Poker n/a n/a 3 n/a n/a n/a n/a n/a n/a n/a n/a n/a KR Netmarble Poker
Let's Vegas Slots 25 34 n/a 21 1 24 6 8 17 22 24 10 TW UserJoy Slots
老子有錢 n/a n/a n/a 31 2 33 30 n/a 31 28 28 28 TW Galaxy Online Slots
神來也16張麻將 13 30 n/a 26 3 19 24 9 23 20 23 16 TW GameSofa Mahjong
Heart of Vegas 12 18 n/a 1 14 5 10 6 8 7 11 11 US Product Madness Slots
Slotomania 10 8 n/a 2 11 1 1 3 2 3 3 1 Israel + US Playtika / Caesars Slots
House of Fun 6 11 n/a 3 13 3 7 5 7 2 5 6 Israel + US Playtika / Caesars Slots
FaFaFa Slots 8 22 n/a 7 7 2 4 2 3 1 2 7 Taiwan IGS Slots
Zynga Poker 18 10 n/a 8 10 4 2 7 1 4 1 2 US Zynga Poker
Full House Casino 29 31 n/a 23 8 6 3 1 14 13 20 24 KR HK ME2ON Slots
DoubleDown Casino 15 21 n/a 9 24 13 20 26 11 12 6 8 NE US IGT Casino
Pokerist: Texas Poker 9 12 n/a 19 22 9 9 12 10 11 19 3 UK KamaGames Poker
Source: App Annie, Jan 15 – June 16
9. 9
Discovery and Payment Channels in key markets are disaggregated and led by native channels
Source: umeng
Qihoo 360,
33%
Baidu, 23%Tencent, 7%
Xiaomi, 5%
Wandoujia,
5%
UC, 4%
Others, 23%
China - Android App Store Market Share Taiwan - Payment Channel Composition of #1
Grossing Casino game
iOS, 19%
Google Play,
42%
mycard, 39%
10. 10
Grossing Rankings of Western Social Casino games / SEA / 2015-2016
Singapore Malaysia Hong Kong Indonesia Thailand Philippines Vietnam
Heart of Vegas 5 10 6 8 7 11 11
Slotomania 1 1 3 2 3 3 1
House of Fun 3 7 5 7 2 5 6
FaFaFa Slots 2 4 2 3 1 2 7
Zynga Poker 4 2 7 1 4 1 2
Source: App Annie, Jan 15 – June 16
22. 22
In the real money casino market of Macau, baccarat dominates as the preferred
game, developing ~20x revenue of slots
170,565
244,795
277,101
330,123
319,062
204,030
8,618 11,425 13,244 14,384 14,444 11,754
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2010 2011 2012 2013 2014 2015
Baccarat Slot Machines Black Jack Cussec Stud Poker Roulette Other Games
Source: Direccao de Inspeccao e Coordinacao de Jogos, Macau SAR
MillionsofMacauPatacas
25. Vectors of Evolution for Social Casino in Asia
Channel
Culturalization
Genre
Player • Appetite for Content and Depth
• Willingness to monetize
• Choices
• Continuous improvement in
Device Quality / Wifi / 3-4-5G
coverage
25
The big 3 markets are dominated by native operators, that are offering their games in native languages only. TW and Australia are as well. In the remainder of the markets, SEA, you see that the Western operators, Sloto, House of Fun, Fa Fa Fa, Zynga, have made early in roads and have leadership positions with essentially unlocalized markets.
China, Japan, Korea led by local operators – who haven’t crossed over to other markets
欢乐斗地主 / Tencent with top 3 CN games in China
GREE, SEGA, Colopl in Japan
SEA, ANZ markets have been a free-for-all and Western games have pushed to seize early market share
Slotomania, House of Fun, FaFaFa, Zynga Poker, Heart of Vegas
Culturalization is rare: only 4 games offer in more than 1 language
We established a fully-resourced, autonomous team in Hong Kong for our Asia effort, including product, engineering, marketing, and rewards verticals in mid 2015.
We soft-launched our first app, myVEGAS Lucky Life, to selected Asia markets this summer.
As you can see here, our approach has been to preserve many of the conventions and balance of the original myVEGAS Slots UI but to culturalize the app via palette, language, re-theming, and other visual, dialog, and sound adjustments
Many of you are familiar with our signature Rewards platform that is consistent across our apps, through which we offer Real World Rewards through our own loyalty program. Players may redeem their loyalty points for exciting experiences such as tasting dinners at Wolfgang Puck, Suite hotel stays at the MGM Grand Las Vegas, and even unique experiences like designing and operating the fountain show at the Bellagio Las Vegas.
We have invested a substantial effort to attract, recruit, on-board, and offer Rewards that are relevant and within geographic reach of our target Asia audiences. Partners such as Genting Highlands in Malaysia, MGM Macau, Resorts World Manila, Prive Group of high end restaurants in Hong Kong, Shinyeh dining experiences in Taiwan, and others allow us to present aspirational rewards to our player base.
With Fortune Charms, we followed a different approach – 100% ground up game design, including bonus, math, theme, sound design and language
Mobage’s Super Sea Story slot app, the #1 social casino game in Japan, is typically rich and dense and takes some cues from the real-world pachinko world, like choosing your seat, and slam stopping the reels like a pachislot game.
Mahjong is a near universal game among ethnic Chinese throughout the world; Tencent’s version shown here is dominant in China. You can see that they offer a couple regional styles. Boyaa and Ourgame also operate notable versions of these. The question that we and other developers have to ask ourselves is:
- In markets like China, we are battling the complexity of the distribution and payment ecosystem, as well as the dominance of Tencent. Is there an angle or feature or gameplay that we can add to differentiate our Mahjong or DDZ app versus these early and entrenched players?
Game of Dice combines the unversally understood mechanic, Dice / Monopoly with RPG progression, collection, and character building features
Fishing Joy introduces the proposition economics of a slot game via a shooting mechanic; this game, of course, is widely known via its presence in entertainment centres throughout China.