Delivered at Casual Connect USA 2016. The $3.5BN social casino gaming market has become very competitive and is dominated by large casino gaming companies with deep pockets. Despite this competition, Rocket Games has been able to grow 600% YoY, without funding, and is now a top-15 social casino operator globally. In this session you will hear how Rocket Games has been able to break into this hyper-competitive market, with highly actionable insights.
Fighting the Big Guys of Social Casino | Niko Vuori
1. Taking on the Big Guys of Social Casino
July 2016
DAVID
v. GOLIATH
2. Niko Vuori
Formerly Zynga Poker GM
niko@rocketgames.com
Co-Founder & COO of
Rocket Games
A (VERY) LITTLE BIT ABOUT ME
3. Our team
INTRODUCTIONTO ROCKET GAMES
Rocket Games
Founded July 2013
Team of (mainly) Zynga Poker alums
Bootstrapped company from cashflow (no outside investment)
Launched first slots title in Sep 2013
Unity-based, mobile-focused
We launch early, launch often – iterate & learn with multiple (51
and counting) products in market
Profitable since Jan 2014
Grew 6x in 2015, now top-15 social casino company globally
4. TOP 15 SOCIAL CASINOOPERATORS
Source: Eilers & Krejcik Gaming
Tier 1: $50-75M/qtr Tier 2: $25-30M/qtr Tier 3: $12-15M/qtr
CIE: $220M/qtr
Top15 accountfor~80%of
total socialcasinorevenues
6. MANY GOLIATHS, HUGE BARRIERS TO GROWTH
Slotomania, House of Fun, Bingo Blitz, WSOP
Hit It Rich, Zynga Poker, Wizard of Oz, Willy Wonka
Doubledown Casino
Jackpot Party, Gold Fish Casino, Quick Hit, Hot Shot
Yearsof content,real-life IP,customerrelationships,early-moveradvantage…
7. HOW CAN YOU GROW IN SUCH A CROWDED MARKET?
~1 in 3 titlesin top50 grossingare casinogames
8. 1. Goliaths go
slow
Move fast
Trust in data
Iterate
2. Goliaths
play defense
Don’t fight head on
Outflank
Find the blind spots
3. Goliaths
are myopic
Where’s the puck going?
Underserved audiences
Spot opportunities early
USE GOLIATHS’SIZE TO YOUR ADVANTAGE
10. WE’VE LAUNCHED 51 TITLES IN 3 YEARS – HERE ARE SOME OF THEM
Sep 2013
Feb 2014
Mar 2014
May 2014
Jul 2014
Aug 2014
Oct 2014
Dec 2014
Feb 2015
Apr 2015
Mar 2015
May 2015
Jun 2015
Jul 2015
Oct 2015 Dec 2015
11. 51 titles, 4.5 stars, 150k reviews
MOVING FAST DOES NOT MEAN SACRIFICING QUALITY
A quality productthatplayerswilllove is what drivesus
14. AVOID HEAD-ON BATTLES
Real-life slotsIP, full integratedcasino
Powerfullicensedbrand
Real-time,synchronoussocialplay
Real-life Las Vegascomps,MGM tie-in
Don’tpick fightsyou can’twin – findan alternative battleground
15. “We are reinforcingthatCoca-Colaisforeverybody,”[Coca-
Cola CMO Marcos]de Quintosaid. “Coca-Colais one brand
with differentvariants,allofwhich share the same valuesand
visualiconography.Peoplewant theirCoca-Cola indifferent
ways, but whichever one they want, theywant a Coca-Cola
brand withgreat tasteand refreshment.”
Source: Coca-Cola
THE COCA-COLASTRATEGY
17. DIFFERENT FLAVORS APPEALTO DIFFERENT CUSTOMERS
Asiantheme
Integratedcasino“lite”
Youngeraudience onTango
messagingplatform
Insteadofpickinghead-onbattlesby tryingtobuildall the
bells andwhistlesincumbentsoffer,we’vetriedtogoafter
smaller,more self-containedexperienceseach offering
somethingslightly differenttocustomers
Tighteconomy
Public domain Alice in
WonderlandIP
Male theme
18. “SHELF SPACE”IN APP STORES LIMITED, MAKE THE MOST OF IT
Two-thirdsof appdiscovery is
through appstore search – the more
productyou have on the shelf,the
more likely the customeristo choose
yourapp versusacompetitor’s
19. CUSTOMERS NEED TO PICK UP YOUR PRODUCT
How many ofthese were paidfor?
22. THE STATEOF NORTHAMERICAN LAND-BASED SLOTS JUNE 2015
MechanicalReelslotsrepresentalmostathirdof North
Americanland-basedslotsintermsofinstall base and are
playedby 17M playersannually
Source: Eilers & Krejcik Research
24. July 2015
IN JULY 2015, VIVA SLOTS VEGAS LAUNCHES…
Viva Slots Vegas
Very early to market on mobile with a quality 3-reel mechanical
slots offering
Mechanical reel slots as a genre represents almost a third of
land-based machines in North America – but was heavily under-
indexed in social/mobile until summer 2015
Immediately upon launch, KPIs for Viva were an order of
magnitude better than anything we’d done prior
After 2 years and ~30 slots SKUs, we’d finally struck a real nerve
with an underserved customer – the classic slots player
Our KPIs unlocked paid user acquisition as a channel, further
accelerating growth
25. Classic slots
~$500
million
HOW BIG CAN CLASSICBECOME?
Source: SuperData Research, Eilers & Krejcik Research
ConcentratedinNorth America
Assumingclassicslotsinsocial casino(a
~$2bn marketinNorth America)achieves
similar penetration asinland-basedcasino
(25-30%),opportunity estimatedat~$500M
27. 1. Goliaths go
slow
Move fast
Trust in data
Iterate
2. Goliaths
play defense
Don’t fight head on
Outflank
Find the blind spots
3. Goliaths
are myopic
Where’s the puck going?
Underserved audiences
Spot opportunities early
RECAP: USE GOLIATHS’ SIZE TO YOUR ADVANTAGE