Caesars Entertainment on Top of Social Gaming
Two years after Caesars Entertainment bought social gaming operation Playtika the company has managed to overtake Zynga. The social gaming industry is now worth $1.2 billion in annual revenues and Caesars now has the largest portion of the market.
The success is down to Playtika’s Slotomania brand, slot machine and bingo games. In May 2011 Caesars acquired 51% of Playtika and the remainder of the company seven months later. Last January Caesars acquired Buffalo Studios which gave Playtika control of the popular game Bingo Blitz. However, the most important step for Caesars was when Playtika pushed into the mobile market.
Gambling companies view social gaming as an excellent source for potential real-money gamblers and even higher revenues.
As online gambling slowly becomes legalised in the U.S. and Canadian provinces companies such as Caesars can begin to tap into this market. Those, such as Caesars and Zynga, which are already well placed in the social gaming market, have a distinct advantage as gamers will already be familiar with the brands.
This news about Caesars is sure to worry Zynga which has been struggling and has seen its share price fall by 75% since its IPO in December 2011.