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Zynga, Inc. Message Board

  • bluesimperials bluesimperials Jun 27, 2013 11:20 AM Flag

    Report Out on RMG in Regulated Markets - nice read.

    San Francisco 28 March 2013 – ‘Opportunities for game developers in regulated real-money online gambling’, a new report commissioned by Odobo and researched by H2 Gambling Capital outlines the size of the global regulated online gambling market and provides new data to expose the scale of the opportunity for games development studios to tap into the most lucrative sector in games monetization.

    Regulated real-money online gambling (RMG), excluding lottery and skill-based games, already generates almost $30bn in gross win internationally, with the UK and Europe accounting for 54% of the market. Recent legislation passed in several US states supports licensing for online gambling and, according to H2, means that by 2017 the US may already represent up to 30% of the global online gaming market and generate gross win just over $7.4bn, this will continue to grow annually.

    Revenues in real-money online gambling are driven by player activity on digital games content with the developers of the games earning royalties of 7-15% of the gaming revenue generated by play of their games. Unlike social and casual gaming (where revenues are generated from a small subset of players), the vast majority of customers of RMG operators are paying revenue-generating players. This royalty alone results in Average Revenues Per User (ARPUs) for the game developer of 30-40 times higher than social gaming.

    When game developers are also active in marketing their games and referring new players to the regulated online casino operators they gain access to additional revenues in the form of affiliate commissions of 25-30% of the player lifetime value. Developers earn this additional income not only when referred player play the developer’s game(s), but on all gaming activity for the lifetime of the player. This amounts to an additional $350-$500 in developer revenue per player on top of game-play royalties.

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