Betable Launches Social Online Gambling
Last week a U.K. based start-up, Betable, announced that it has found a way to combine social gaming and gambling. While this is illegal in the U.S it has still attracted a great deal of attention from U.S. investors.
Betable has been granted a license from the United Kingdom Gambling Commission to handle betting services for players based in locations where online gambling is legal. The company has employed a number of anti-fraud and verification checks in order to block gamblers from companies where online gambling is illegal.
Betable is releasing an API which will enable social game developers to incorporate gambling into any game. The idea is that players will be able to earn cash and developers will also be able to make large profits in the process. Betable is hoping that their solution will solve the biggest problem facing social game developers such as Zynga. At present social gaming companies need millions of gamers in in order to make any money.
It is thought that the free social games model only generates $1 a month per user with a lifetime value of $2 whereas a real-money gamer can generate as much as $300 and have a lifetime value of $1,800. It is obvious that a user spending money on gambling is going to generate a much larger amount of revenue if they play hours of online slots of poker. Betable could potentially make social gaming developers a fortune taking them from the $7 billion social games industry to the $32 billion online gambling industry.
With potential changes in legislation coming up in the U.S. Betable has attracted some impressive investors including Greylock, True Ventures, Path founder Dave Morin and StockTwits founder Howard Lindzon.
American social game developers who are interested in Betable will be pleased to hear that they are holding a hackathon in San Francisco on July 27th.