![]() ![]() ![]() Critically, it is focused on hypercasual and traditional social games (such as Traffic Puzzle) rather than social casino. Huuuge Games, the biggest success story in the social casino space in the last three years, launched a publishing arm. Playtika, the largest social casino company, acquired Seriously last month, after acquiring Wooga last year. While no social casino operator has publicly warned about the challenges they are facing, their actions speak more loudly. Actions show that the top companies do not believe in the space At some point, however, social casino operators will hit a ceiling as VIPs cannot and will not spend more. The revenue growth has been driven by certain companies (particularly Playtika) becoming increasingly adept at growing revenue per customer, especially among their VIPs. Over the past couple of years industry revenue has continued to increase but active players has remained virtually stagnant. The greatest threat to the social casino industry is that the user base is not growing. Most social casino companies would not publicly disclose that they are expecting growth to slow (or reverse) but unspoken indicators are bearish. While revenue in the social casino space continues to increase (a streak that has not been broken since the first days of Zynga Poker and Slotomania), dark clouds on the horizon have started to dampen the enthusiasm. ![]()
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