The recent Global Gaming Expo revealed an increased interest among land-based casino operators in social gaming platforms, according to an investor note from Union Gaming Research LLC.
“As anticipated, social gaming has drawn some attention and created some buzz at G2E this week,” wrote Union Gaming analyst Robert Shore. “For operators, this is largely in recognition of the potentially significant complement to their brand extension, loyalty programs and as a means to reconnect with lost customers as well as stay connected with the existing customers while they are away from the physical property.”
Shore predicted more land-based casinos will look to free-play social sites to maintain an online presence and connect with customers away from the casino. He identified Caesars Entertainment and MGM Resorts International as being “particularly well-positioned” to benefit from social gaming.
“Caesars Entertainment’s dedicated Caesars Interactive segment is expected to produce upwards of US$200 million in EBITDA over the next 12 months to 18 months, and it remains a platform poised (likely) to grow through acquisition,” Shore wrote. “MGM has done well via the myVegas site/app in partnership with PlayStudios Inc. over the past two years, now boasting over 1 million daily active users.”
