Exploring the opportunities for media owners, app developers, marketing agencies and mobile network operators to generate extra revenue, attract new customers by tapping into the mobile real money gaming boom. Gambling on mobile devices will generate €19bn of revenue worldwide in 2018 (H2 Gambling Capital). Mobile is an unstoppable force in the gambling industry. Almost half of on-line betting in the UK has already switched to mobile, and no major gambling operator can afford not to have a mobile site. Mobile is disrupting gambling in less obvious ways by bringing in a whole new type of customer, and opening up the opportunity to brands and marketeers from outside the traditional industry to promote casual, entertainment focussed, gambling games direct to mobile. Recently we’ve noticed a growing number of non-gambling companies approach us with an interest in entering the sector. They are attracted by the potential to increase revenues, to attract, retain and engage customers. But they’re not gambling businesses, and they don’t want
to be gambling businesses. Our White Label partnership programme is designed to meet that need. These partners often share the same questions and concerns about
gambling - how it works, who plays, why they play, where they play. To help answer these questions we invited a sample of our UK customers to participate in a mobile survey. Nearly 4000 participated. In this White Paper you will get many of the answers and insights you need to map out your path into mobile entertainment gambling.
Our survey reveals which social and other media channels they use, the gender split
of players, the average game play session time, peak times of play, and the top 5 regions in the UK for cash game players. We think you’ll agree with us that, with the right partner and strategy, real money mobile games present a fantastic opportunity
for brands, media owners, marketing agencies and mobile network.
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
IS IT TIME TO TAP INTO THE REAL-MONEY MOBILE GAMING BOOM ? Probability_Feb 19 2014
1. 33
59
A white paper by Probability – A leader in mobile entertainment gambling services
and technology, operating exclusively in regulated markets.
IS IT TIME TO TAP INTO
MOBILE GAMING BOOM?
THE REAL-MONEY
IS IT TIME TO TAP INTO
MOBILE GAMING BOOM?
THE REAL-MONEY
THE FUTURE OF MOBILE
GAMING AND GAMBLING
Exploring the opportunities for media owners, app developers,
marketing agencies and mobile network operators to generate
extra revenue, attract new customers by tapping into the
mobile real money gaming boom.
2. White Paper: The Future of Mobile Gaming and Gambling 2
TABLE OF CONTENTS:
• Introduction
• What is mobile entertainment gambling?
• The Opportunity
• Meet the players.
•
- How often do you play and bet on mobile?
- Where do you usually play?
- Do your family, friends and colleagues play and bet on
mobile?
- Would you recommend mobile entertainment gambling to
family, friends and colleagues?
- What types of TV programmes to you watch most?
- How do you read the news?
• Conclusion
• Case studies:
- MadAboutSlots
- Winneroo
• Why work with us
• About Probability
• Methodology
2
3
6
7
8
9
10
11
12
13
14
15
16
17
19
20
3. White Paper: The Future of Mobile Gaming and Gambling 3
Mobile is an unstoppable force in the
gambling industry.
Almost half of on-line betting in the UK has
already switched to mobile, and no major
gambling operator can afford not to have a
mobile site.
Mobile is disrupting gambling in less obvious
ways by bringing in a whole new type of
customer, and opening up the opportunity to
brands and marketeers from outside the traditional industry to promote
casual, entertainment focussed, gambling games direct to mobile.
Probability was a pioneer in mobile entertainment gambling when we
for dozens of brands, supporting thousands of mobile devices, and over a
million registered players in the UK with a catalogue of products ranging
from Bingo to Roulette, Blackjack to Slots.
Recently we’ve noticed a growing number of non-gambling companies
approach us with an interest in entering the sector. They are attracted
by the potential to increase revenues, to attract, retain and engage
customers. But they’re not gambling businesses, and they don’t want
to be gambling businesses. Our White Label partnership programme is
designed to meet that need.
These partners often share the same questions and concerns about
gambling - how it works, who plays, why they play, where they play. To
help answer these questions we invited a sample of our UK customers to
participate in a mobile survey. Nearly 4000 participated.
In this White Paper you will get many of
the answers and insights you need to map
out your path into mobile entertainment
gambling.
Our survey reveals which social and other
media channels they use, the gender split
of players, the average game play session
time, peak times of play, and the top 5 regions in the UK for cash game
players.
We think you’ll agree with us that, with the right partner and
strategy, real money mobile games present a fantastic opportunity
for brands, media owners, marketing agencies and mobile network
Gambling on
mobile devices will
generate €19bn of
revenue worldwide
in 2018 (H2
Gambling Capital)
Over 20 million Britons
play a mobile game at
least once a month.
6 million play daily.
(Comscore)
Introduction
4. White Paper: The Future of Mobile Gaming and Gambling 4
Entertainment gambling
is our name for low
stakes, high payout, high
frequency gaming which is
all about fun with a chance
to win some money. It’s
end-of-the-pier fun, and
part of a wider and diverse
gambling world.
The shape of the gambling industry
The range of offerings in the gambling industry is very wide, with a
complex supply chain and intense competition at every level.
At the more traditional end are major bookmakers and land based
casinos, which often have a small number of very valuable players
supporting their revenues. In the middle are popular sports betting
services, online casinos and Bingo.
“Casual” or “Entertainment” gambling covers everything from Lottery
scratchcards to a 5p mobile Slot game. This is by far the largest segment
in terms of participation and also the most socially acceptable.
The Mobile Effect
In the 2013 eGaming Review Power 50, every one of the Top 10 companies
companies (including Probability). In fact, two of our “B2B” customers are
in the top three. Mobile and tablet are reshaping the whole industry.
Some analysts believe that up to
30% of e-gambling revenues will be
via mobile by 2015, and some of the
vertically integrated bookmakers
are already reporting that half their
digital sports bets are being made
through their mobile sites.
As long time participants and
industry is only just beginning.
mobile, driven by convenience and the added privacy of accessing
gambling on a personal device.
WHAT IS MOBILE ENTERTAINMENT GAMBLING?
Tablets are showing faster adoption
rates that smartphones. It took
nearly four years to reach 6%
penetration from when the devices
level. Tablets accomplished this in
just two years. (Business Insider)
One in every 5 people
in the world owns a
smartphone, one in
every 17 owns a tablet.
(Business Insider)
5. White Paper: The Future of Mobile Gaming and Gambling 5
The next phase, however, will be different; the customer will be mobile
Tablet adoption will strongly
because tablet services can more
closely represent the desktop
experience and players are more
likely to engage in longer duration,
complex gaming sessions on a
table than a smartphone.
And already in the last few months Probability has noticed more players
using tablet devices to play our real money mobile gambling games.
Currently 51% of players use iOS devices, 38% play on Android and the
remaining 11% play on other devices (e.g.; iPad, iPod and Java) with
the most popular game in the Probability’s games lobby being ‘Pots O
Plenty’, a Slots game themed around the Emerald Isle with pots of gold,
leprechauns and rainbows.
Times are (still) a’changing
When is a gambling game not a gambling game?
When it’s in a “social casino”.
In the USA, where online gambling is still mostly
illegal, three of the top ten grossing mobile apps
in 2013 were social casinos (AppAnnie). They are
classed as non-gambling products because players
cannot withdraw money or prizes, and there is no
regulation of the product or the service.
Players in the UK can enjoy “the real thing” and here, social casinos are
much less prominent in the sales charts. On the other hand, our survey
found that 74% of our customers actually play on social casinos - even
though they can’t win real money.
We think that social casino is a potentially disruptive innovation for real
money gaming - not because it will stop people from doing it (the UK
shows that) but because it changes what people expect. Social casinos
which real money sites don’t offer. To stay
relevant, real money gaming needs to
adapt. We’ve started that process already
with our hugely successful “Daily Bonus
Bonanza”. Expect more to come.
Mobile squared predicts the
number of mobile users placing
bets via their mobile device
will overtake the 9 million
online users by the end of 2014
at the latest.
Social casinos
generated
$1.1bn of
revenue in the
USA in 2013.
(Superdata)
Mobile gambling
set to be worth
$100bn by 2017
(Juniper)
6. White Paper: The Future of Mobile Gaming and Gambling 6
THE OPPORTUNITY FOR BRANDS.
Mobile entertainment gambling is a fast
growing, mainstream form of entertainment.
These services deliver snackable fun to people
who want to play mobile games on the go,
for a few minutes with the chance to win real
money.
Typcially, these players don’t consider it to
be “gambling” (in the same way as Lottery is
not seen as betting), attracting a whole new
audience and creating whole new opportunities for brands to get on
board.
Our solution for non-gambling companies looking to enter the space is
our White Label fully managed service.
White Label gives partners a mobile entertainment gambling service
we are fully responsible under regulation.
Our brand partners market the service through their existing channels
and we work closely together on promotions and customer retention, as
well as maximising the value to their overall business. Together we can
build a sustainable and responsible new source of revenue, a relationship
builder with customers and a point of differentiation in the market.
There has never been a better time to tap in to the opportunity of real
money mobile entertainment gambling.
It’s predicted
that 30% of all
online gambling
revenues will
come via mobile
by 2015 (Juniper)
7. White Paper: The Future of Mobile Gaming and Gambling 7
Meet the Players.
We surveyed around 4,000 of our active customers over a period of a
couple of weeks in late 2013.
accounts on one of our mobile casino brands in the UK.
this survey.
But before we do that, you might be interested to know a bit more about
who and where they are:
• Average age is just under 30.
• 53% of respondents were male, 47% female.
• The average game play session with us is 12 - 15 minutes, on average 3
times a day when active.
• Peak times of play are 6pm to 10pm on weekdays, later on Saturdays.
• The top 5 regions for cash play in the UK are the East Midlands, Greater
London, the South East, South West and West Midlands.
8. White Paper: The Future of Mobile Gaming and Gambling 8
How often do you play and bet on mobile?
• 62.3% of participants play and bet on mobile more than once a week
• 26.8% of participants play and bet on mobile more than 3 times a week
Our view:
Frequency of play for these products is similar to that for non-real
money games. In players minds, they are just another game. That’s key
to understanding the potential for mass acceptance of this format of
gambling.
Diagram 1. How often do you play and bet on mobile?
KEY SURVEY FINDINGS
10%5%0% 15% 20% 25% 30%
1x per week
603
2x per week
685
1x per month
393
2x per month
251
Occasionally at events
473
More than 3x
per month
243
More that 3x per week
973
9. White Paper: The Future of Mobile Gaming and Gambling 9
Where do you usually play?
• 92% of participants said they usually play at home
• 21% said they play whilst travelling
Our view:
With 92.1% playing at home (we think, largely, whilst watching TV), this
explains the frequency of play (1-3 times a week for most people) and the
short session periods (<15 minutes on average) which we observe.
This is similar to other forms of casual gaming.
We read into this that real money gaming is seen by our customers as a
distraction.
Diagram 2. Where do you usually play?
0 500 1000 1500 2000 2500 3000 3500
(759) Whilst
Travelling
20.7%
(3372) At home
92.1%
(594)
At work
16.2%
(246)Inthe
parkorother
outdoorspace
6.7%
(268) In a pub,
bar or
restaurant
7.3%
10. White Paper: The Future of Mobile Gaming and Gambling 10
Do your family, friends and colleagues play and bet on
mobile?
• 47% of participants said they do.
Diagram 3. Do your family, friends and colleagues play and bet on
mobile?
Our view:
entertainment gambling services we offer.
Not only do nearly 70% of players know whether or not their friends and
family play and bet on mobile, but 47% say they know someone who
does.
10005000 1500 2000
(1705) Yes
47.0%
(743) No
20.5%
(1182) I don’t know
32.6%
11. White Paper: The Future of Mobile Gaming and Gambling 11
Would you recommend mobile entertainment gambling to
family, friends and colleagues?
• 87% of participants would recommend mobile entertainment gambling
to family, friends and colleagues
Our view:
The consistency of the answers to our questions about the shareability of
mobile gambling was very strong.
It clearly supports our view that this is a socially acceptable, mass market
proposition which - if responsibly managed and properly positioned -
offers no reputational risk to brands for whom it is relevant.
Diagram 4. Would you recommend mobile entertainment gambling to
family, friends and colleagues?
0 500 1000 1500 2000 2500 3000 3500
(3166) Yes
86.9%
(382) No
10.5%
(95) If no, why not?
2.6%
12. White Paper: The Future of Mobile Gaming and Gambling 12
Our view:
Savvy marketers and brands can use this data to correlate the potential
appeal of mobile gambling with their customers based on information
they have about their viewing habits.
Diagram 5. What types of TV programmes do you watch most?
0%
Film
Comedy
Soaps
Documentary
Drama
Entertainment
Music
Sport
Game Shows
Factual
All Other
Responses
20% 40% 60% 80% 100%
215 648 2279
246 812 2056
710 807 1503
568 1093 1344
540 1105 1327
650 1223 1004
622 1040 1143
13845 10762 5646
242 811 1893
496 1073 1362
1112 663 1152
What types of TV programmes do you watch most?
• 72.6% of participants ranked Film as their most favourite ‘thing’ to
watch on TV
• 66.1% said Comedy
• 64.3% said Entertainment
• 49.8% ranked Soaps
13. White Paper: The Future of Mobile Gaming and Gambling 13
How do you read the news?
• 41% of participants said they read the news on mobile.
10005000 1500 2000
On Desktop
10.6%
On Mobile
41.2%
On Tablet
6.9%
In Print
45.0%
I don’t read the news
22.3%
Diagram 6. How do you read the news?
Our view:
Many of our customers are either print media or advertising partners
gambling might appeal to their consumers.
Print is the preferred media channel of 45% of participants but mobile is
catching up - only 4% behind with 41% of participants saying they read the
news on their mobile.
For brands looking to remain relevant to consumers migrating their
activities and attention from print to mobile, we think adding a real
money gaming service to the mobile property could help secure
their loyalty and add value to the new media.
14. White Paper: The Future of Mobile Gaming and Gambling 14
We want to highlight two themes from our survey results:
1. Social acceptability of mobile gambling.
Whilst “hard” forms of betting and gambling, such as going into a casino
or a betting shop, are still somewhat taboo in many respects, “soft” casual
games, positioned as fun rather than risk, are socially acceptable and
highly shareable.
2. Broad demographic appeal
There’s no single “type” who plays mobile gambling games. Players
discover, consume and share these products just like other games they
can play on their mobile.
that smart brand owners have good reason to be interested in this area.
We’ve included case studies of some of our partners; two very different
businesses with different customers, but both able to exploit this
opportunity to the full.
hope to be able to help you too.
CONCLUSION
15. White Paper: The Future of Mobile Gaming and Gambling 15
Objective:
Solution:
MadAboutSlots partnered with Probability to establish themselves
Probability’s White Label managed solution.
Eschewing a saturated online bingo market, MadAboutSlots launched
with Probability in August 2012 heralding a new era in mobile gambling.
Results:
During the 18 months since launch MadAboutSlots has seen incredible
growth from the initial nine-month period versus the second, notably a;
• 146% increase in deposits
• 149% increase in revenue
• 190% increase in cash bets
• 120% increase in new depositing players
Testimonial:
“Our partnership with Probability enabled us to create a well-designed
site that is on-brand and in August 2012 we launched madaboutSlots.
co.uk to offer players excellent games to suit all types of budget. The
results have been fantastic, delivering over and above our initial KPIs and
are a direct result of Probability’s CRM team.”
Andrew Edwards,
CEO, Founder, MadAboutSlots
CASE STUDY 1: MadAboutSlots
16. White Paper: The Future of Mobile Gaming and Gambling 16
Objective:
To drive additional revenue from their competition site
Solution:
Winneroo, the UK’s latest concept in free prize competitions, utilised
Probability’s ‘White Label’ managed solution to provide mobile gaming
and gambling expertise, player security, regulatory compliance, CRM,
access to Probability’s games portfolio and more, and ultimately increase
deposit values and revenue to Winneroo’s competition site. The service
went live in October 2012.
Results:
from the initial six-month period versus the second, notably a;
• 239% increase in deposits
• 258% increase in revenue
• 228% increase in cash bets
• 152% increase in new depositing players
Testimonial:
“We chose Probability as our mobile casino provider for Winneroo Games
because of their strong games portfolio, readiness to launch into the UK
market, and proven track record of delivering successful mobile casinos.
The casino started performing strongly soon after launch and continues
to trade ahead of expectations.”
Jussi Halme,
Director, Winneroo
CASE STUDY 2: Winneroo
17. White Paper: The Future of Mobile Gaming and Gambling 17
Probability’s business-to-business White Label solution provides media
owners, app developers, broadcasters, marketing agencies, mobile
network operators and gambling operators with access to our network.
The service helps brand and businesses to generate new revenue, attract
new customers and build customer loyalty amongst an existing customer
base.
Why work with Probability
• Open new revenue streams
• Launch branded games services
• Increase brand exposure and drive loyalty
• Access to exclusive HD games
We simplify your journey into mobile entertainment gambling.
The mobile entertainment gambling industry is booming right now.
Various games companies are investigating the best route to market as
the convergence of social and freemium to premium gathers momentum
on a global scale. In Q1 2013 alone Probability secured a partnership with
global gaming giant Glu Mobile to expand their real-money gaming
portfolio and entered into content licensing and distribution agreement
with Spin Games. More global announcements are on the horizon...
In the UK and Italy we provide fully managed White Label solutions for
non-gambling brands such as digital media companies, app developers,
marketing agencies, broadcasters and mobile network operators to help
them further monetise new and existing customers, plus drive loyalty
and brand exposure. Moreover customers are able to play fun, interactive
mobile games and win real money at a time and place that’s convenient
to them.
WHY WORK WITH US
WHITE LABEL
PROBABILITY MANAGED
DEDICATED ACCOUNT MANAGEMENT TEAM
1-8WEEK
PROCESS
Gambling license
Fraud management
Tier one banking
Customer services
API tools
Games portfolio
Due diligence and Gibraltar
Gambling Commissioner
(GGC) approval
You provide
the brand
Plus market to existing
and new customers
through your channels
Configure and build site
New games releases
Customer marketing
Revenue increase
Customer engagementQA testing
CRM
Device compatibility
Regulatory compliance
Mobile portal
Player security
Reporting
18. White Paper: The Future of Mobile Gaming and Gambling 18
– Probability are the mobile entertainment
gambling experts. The team works collaboratively, sharing ideas to
overcome challenges and to make sure the company is always ahead of
the game, both with our technology and services, and with the insight
provided to our customers, partners and the industry at large.
– Since launch in 2004 the vision has been to focus
exclusively on mobile and that’s one of the reasons why Probability is
leading the way in mobile entertainment gambling. Games are built
Android, Blackberry and tablets.
– Probability are a safe pair of hands, the business
holds remote gaming licence from the Government of Gibraltar,
Probability Games Corporation is licenced by the UK Gambling
Commission and the business operates exclusively in regulated markets.
– In June 2013 the company introduced
the next generation of mobile gambling games supercharging the player
experience with HD graphics, responsive interfaces, smooth animation
and crystal clear sound, with the release of six HD Slots for iOS, Android
and Blackberry users - The result of over £1m R&D.
– Slot-O-Matic, Probability’s game
development and management system enables the business to create
more games, on more devices, in more regulated jurisdictions, more
quickly than anyone else in the market. Reducing time to market from
months to days. In addition the business provides 10 years unrivalled
mobile player insight gathered from data captured across our network.
Mobile specialists
100% mobile
Trusted partners
Next generation HD games
Technology and insight
Top 5 reasons to work with Probability.
19. White Paper: The Future of Mobile Gaming and Gambling 19
Probability is a leader in mobile entertainment gambling services and
technology, operating exclusively in regulated markets.
The business owns and operates some of the UK’s most popular mobile
(www.ladylucks.co.uk), Moobile Games (www.moobilegames.com) and
Touch My Bingo (www.touchmybingo.com).
Probability provides a fully managed White Label solutions for non-
gambling brands such as media companies, app developers, marketing
agencies, broadcasters and mobile network operators.
In the UK and Italy Probability provides its games as a hosted service
to leading gambling operators including Paddy Power, William Hill,
Lottomatica and SNAI.
The business was founded in 2004 and is headquartered in London, UK
with subsidiaries in Gibraltar and Switzerland. It is licensed to provide
gambling services in the UK, Gibraltar and Italy.
is listed as PBTY.
www.probability.co.uk
@ProbabilityPlc
info@probability.co.uk
ABOUT PROBABILITY
20. White Paper: The Future of Mobile Gaming and Gambling 20
All data and insight shared in this White paper are provided by Probability
unless stated otherwise.
Our quantitative research involved an online survey of 3,766 customers
who play Probability’s mobile entertainment gambling games.
As a thank you, each participant’s account was credited with a £2 bonus.
A participant could only complete the survey once.
started).
The survey ran for a four-week period during H2 - 2013.
METHODOLOGY