The world of social gaming , real money gambling and traditional gambling are converging on a daily basis. According to Morgan Stanley the social casino gaming market could be worth well over $7 billion by 2015 at the current growth rate. This is only a drop in the ocean compared to the real money gambling online market which could be worth anything up to ten times that of the social market.
This is a side both sides are looking to benefit from each others distinctive client base. The chance to convert even a small portion of social casino gamers to the real money option in jurisdictions where it is legal is a fact that has not gone unnoticed by entertainment companies.
The latest example of a classic Entertainment entity wanting to get in on the social casino market is that of Bischoff Hervey Entertainment Television (BHE TV) who have announced their acquisition of a 50% equity stake in MX Digital who are a leading gaming developer of online social casino games on for both PC and mobile platforms.
BHE TV at first glance are a strange fit for a gaming company because they are involved in producing reality programming for leading television channels like NBC, Discovery Channel, VH-1 and Spike TC. This however is where the gambling industry is going. In the last few years in particular the stigma of online gambling whether it be social gaming or the real thing has been largely removed and shifted to that of global acceptance. With estimates of 12% of the global population (800 million) people engaging in one form or another of online social gaming per month and of that 20% playing a casino-based game, it is no wonder that there are so many interested parties looking to cash in.
Companies like BHE TV see the social casino market as an important part of their company’s portfolio in the coming years. Currently social casino gaming is unregulated and is therefore available in many jurisdictions where real gambling is illegal. With the global online gambling market undergoing legal changes it would be naive to ignore the real motive for many investors in social casino games.
Founder of BHE TV Jason Harvey commented on their new acquisition,” With MX, we’re excited to find ourselves at the forefront of an entirely new entertainment sector. Combine the enormous growth in online gaming globally, and the explosion in popularity of mobile, and social games, and you’ve got an emerging sector that’s already massive. Getting in on the ground floor of an entirely new medium is a once-in-a-lifetime opportunity.”
Ike McFadden of MX stated his delight with the deal, “The partnership is the perfect strategic fit for us. The relationships and experience BHE TV has built in the entertainment and licensing world allow us to significantly broaden our content, and access top entertainment brands quickly.”
With global gaming growing at a rapid pace the interactive market is seen as an important growth area for big studios and networks. Partnerships between classic entertainment companies and those of social casino gaming and real money gambling are set to continue.