Social Casinos in Canada 2023

Social casinos are online platforms that offer casino-style games such as slots, poker, blackjack, roulette, and bingo, but without real money wagering. Instead, players use virtual currency or credits that can be purchased or earned through gameplay, social interactions, or watching ads. Social casinos are popular among people who enjoy the thrill and excitement of gambling, but do not want to risk losing money or face legal issues.

Social casinos are not regulated by the same laws and authorities as real-money online casinos in Canada. This means that they do not require a license from the provincial governments or the Canadian Gaming Association (CGA), and they do not have to follow the same standards of fairness, security, and responsible gambling. However, social casinos still have to comply with the general laws of Canada, such as the Criminal Code, the Competition Act, and the Privacy Act.

According to a report by Eilers & Krejcik Gaming, social casinos generated $5.2 billion USD in global revenue in 2020, with North America accounting for 54% of the market share. Canada is one of the top countries for social casino players, with an estimated 7.6 million monthly active users (MAU) and $183 million USD in annual revenue in 2020. The social casino market in Canada is expected to grow at a compound annual growth rate (CAGR) of 9.6% from 2020 to 2023, reaching $290 million USD in revenue by 2023.

What are the main drivers of social casino growth in Canada?

There are several factors that contribute to the increasing popularity and demand for social casinos in Canada. Some of them are:

• The COVID-19 pandemic: The outbreak of the coronavirus pandemic in 2020 had a significant impact on the gambling industry worldwide. Many land-based casinos were forced to close or limit their operations due to lockdowns and social distancing measures. This created a gap in the market for online gambling alternatives, especially for casual and recreational gamblers who were looking for entertainment and socialization during the pandemic. Social casinos offered a convenient and accessible way for these players to enjoy their favorite casino games without leaving their homes or risking their health.

• The legalization of single-game sports betting: In June 2021, the Canadian Senate passed Bill C-218, also known as the Safe and Regulated Sports Betting Act, which amended the Criminal Code to allow provinces and territories to regulate and license single-game sports betting. This was a major milestone for the Canadian gambling industry, as it opened up new opportunities and markets for online sports betting operators and players. Social casinos can benefit from this development by offering social sports betting products that mimic real-money sports betting platforms, but with virtual currency and prizes. Social sports betting can also serve as a gateway for new players who want to learn about sports betting before transitioning to real-money platforms.

• The innovation and diversity of social casino products: Social casino operators are constantly developing new and improved products that cater to different types of players and preferences. Social casino games are not limited by the physical constraints of land-based casinos, which means that they can offer more variety, creativity, and interactivity than traditional casino games. For example, some social casino games feature themes based on popular movies, TV shows, celebrities, or brands; some offer mini-games, tournaments, leaderboards, or quests; some integrate social media features such as chat rooms, friend lists, or sharing options; and some use advanced technologies such as virtual reality (VR), augmented reality (AR), or artificial intelligence (AI) to enhance the gaming experience.

• The accessibility and affordability of social casino platforms: Social casino games are widely available on various devices and platforms such as smartphones, tablets, computers, web browsers, social networks, or dedicated apps. This makes them easy to access and play anytime and anywhere. Moreover, social casino games are generally free to play or have low entry barriers compared to real-money online casinos. Players do not have to deposit money or provide personal information to play social casino games. They can also choose how much they want to spend on virtual currency or credits if they wish to enhance their gameplay or unlock more features.

What are the main challenges and risks of social casino in Canada?

Despite the positive outlook and potential of social casino in Canada, there are also some challenges and risks that need to be addressed and mitigated. Some of them are:

• The lack of regulation and oversight: As mentioned earlier, social casino games are not subject to the same regulatory framework and standards as real-money online casinos in Canada. This means that there is no guarantee that social casino games are fair, secure, or ethical. There is also no official body or authority that monitors or enforces the quality, safety, or integrity of social casino games or operators. This creates a risk of fraud, cheating, hacking, data breaches, or other malpractices that can harm the players or the industry. Moreover, there is no clear or consistent definition of what constitutes a social casino game or platform, which can lead to confusion, ambiguity, or inconsistency among players, operators, regulators, and stakeholders.

• The potential for gambling addiction and harm: Social casino games may not involve real money wagering, but they still share many similarities and characteristics with real-money gambling. Social casino games can induce the same psychological and emotional responses as real-money gambling, such as excitement, thrill, anticipation, satisfaction, frustration, or regret. Social casino games can also trigger the same cognitive biases and distortions as real-money gambling, such as illusion of control, gambler’s fallacy, or near-miss effect. These factors can influence the players’ behavior and decision-making, and make them more prone to excessive or compulsive playing, chasing losses, or spending more than they can afford on virtual currency or credits. Social casino games can also have negative impacts on the players’ mental health, well-being, relationships, or finances.

• The competition and saturation of the market: Social casino is a highly competitive and crowded market, with hundreds of operators and thousands of games vying for the attention and loyalty of the players. Social casino operators have to constantly innovate and differentiate themselves from their rivals to attract and retain their customers. However, this can also lead to a saturation and homogenization of the market, where social casino games become too similar or indistinguishable from each other. This can reduce the players’ interest and engagement, and increase their switching or quitting behavior.

Conclusion

Social casino is a growing and dynamic segment of the online gambling industry in Canada. It offers a fun and exciting way for people to enjoy casino-style games without risking money or facing legal issues. Social casino is driven by various factors such as the COVID-19 pandemic, the legalization of single-game sports betting, the innovation and diversity of social casino products, and the accessibility and affordability of social casino platforms. However, social casino also faces some challenges and risks such as the lack of regulation and oversight, the potential for gambling addiction and harm, and the competition and saturation of the market. Social casino operators need to be aware of these issues and take appropriate measures to ensure that their products are safe, responsible, and sustainable for their players and the industry.

FAQ

What is a social casino?

A social casino is an online platform that offers casino-style games such as slots, poker, blackjack, roulette, and bingo, but without real money wagering. Instead, players use virtual currency or credits that can be purchased or earned through gameplay, social interactions, or watching ads.

Is social casino legal in Canada?

Social casino is not regulated by the same laws and authorities as real-money online casinos in Canada. This means that it does not require a license from the provincial governments or the Canadian Gaming Association (CGA), and it does not have to follow the same standards of fairness, security, and responsible gambling. However, social casino still has to comply with the general laws of Canada, such as the Criminal Code, the Competition Act, and the Privacy Act.

How big is the social casino market in Canada?

According to a report by Eilers & Krejcik Gaming, social casinos generated $5.2 billion USD in global revenue in 2020, with North America accounting for 54% of the market share. Canada is one of the top countries for social casino players, with an estimated 7.6 million monthly active users (MAU) and $183 million USD in annual revenue in 2020. The social casino market in Canada is expected to grow at a compound annual growth rate (CAGR) of 9.6% from 2020 to 2023, reaching $290 million USD in revenue by 2023.

What are some examples of social casino games?

Some examples of popular social casino games are:

• DoubleDown Casino: A social casino game that offers over 200 slots, video poker, blackjack, roulette, and bingo games. Players can also interact with other players through chat, gifts, or tournaments. DoubleDown Casino is available on Facebook, iOS, Android, and Amazon devices.

• Slotomania: A social casino game that features more than 200 slot games with various themes, features, and bonuses. Players can also join clubs, compete in leagues, or spin the wheel of fortune for extra rewards. Slotomania is available on Facebook, iOS, Android, and Windows devices.

• Zynga Poker: A social poker game that allows players to play Texas Hold’em poker with millions of other players around the world. Players can join tables based on their skill level, buy chips with real or virtual money, chat with friends, or participate in tournaments and events. Zynga Poker is available on Facebook, iOS, Android, and Windows devices.

• myVEGAS Slots: A social casino game that rewards players with real-world prizes from partners such as MGM Resorts, Royal Caribbean, Wolfgang Puck, and Cirque du Soleil. Players can play over 100 slot games with different themes and features, collect loyalty points, and redeem them for hotel stays, dining vouchers, show tickets, and more. myVEGAS Slots is available on Facebook, iOS, Android, and Kindle devices.

• FarmVille: A social farming game that allows players to create and manage their own virtual farm. Players can plant crops, raise animals, craft goods, decorate their farm, and interact with other players. FarmVille is available on Facebook and Zynga.com.

• Mob Wars: A social crime game that allows players to build their own criminal empire. Players can recruit gang members, buy weapons and vehicles, complete missions, fight rivals, and earn cash and respect. Mob Wars is available on Facebook and iOS devices.

• CityVille: A social city-building game that allows players to create and run their own city. Players can construct buildings, collect rent, provide services, expand their territory, and interact with other players. CityVille is available on Facebook and Zynga.com.

• Mafia Wars: A social role-playing game that allows players to join or create their own mafia family. Players can complete jobs, fight enemies, collect loot, upgrade their skills and equipment, and cooperate or compete with other players. Mafia Wars is available on Facebook and Zynga.com.

• Farm Town: A social farming game that allows players to grow crops, raise animals, sell products at the market, visit other farms, and chat with other players. Farm Town is available on Facebook.