Land-based casinos reigned in the old days because they were the best form of entertainment that money could buy while out on vacation. However, these days the story is different. The era of smart phone technology is changing the hottest trend of the old days. Most people just opt to play real money games on their phones or tablets in the comfort of their homes or hotel rooms, rather than venturing outside to search for a casino. Consequently, this has given rise to several startups which are eyeing this industry very keenly.
Real world example of startups that are leveraging on gaming apps to generate revenue
One startup by the name Virtual Gaming Worlds is currently utilizing this opportunity to make money. This startup now runs a digital casino called Chumba casino, where users can play digital poker and card games for a chance to win prizes. They started with a concept called ‘’social casino gaming’’, and it involved utilizing Facebook’s platform to gain an audience, thus converting them into revenue over time. This startup makes money when users pay for extra credits or for premium gaming experience.
This gaming app works relatively the same as Royal Vegas online casino. The only difference here is that it works within Facebook’s platform to draw in users in an innovative way. The owner chose this social media platform because he had found a way to exploit the sweepstakes rules on Facebook. After all, that’s the idea of a startup – i.e. to come up with something that everyone else is not doing.
Why startups are encouraged to venture into digital wagering business
There are many countries that have relaxed their laws concerning online gambling. Countries like the UK, Singapore, and Malaysia allow digital casinos to operate with real cash. However, in areas such as Australia (although there have been recent legislative developments on internet gambling) and US, the law is a little bit strict – with the exception of New Jersey and Nevada. These states have since legalized online gambling.
Still many startups could follow the route that this casino startup used, and they could utilize it to their advantage in countries like the US. The only way to do so is to exploit Facebook’s sweepstakes rules which don’t define them as gambling in some American jurisdiction. This automatically creates a loophole for startups that want to venture into online gambling business.
If this arrangement is to be used in areas like the US, these startups would come up with a business model where users are allowed to purchase virtual credits which will then be used to gamble inside the best iOS casino app (if the user in question owns an iPhone). Those credits can also be cashed out on prizes that have been won.
So in one way or the other, these startups will still be playing by the rules as far as US legislations are concerned.
Verdict
Even though competition is stiff in the online gambling world, startups that have managed to remain afloat have always done so because of their innovativeness in a world where laws are tough on gambling. But since online gambling just turned out to be very popular, the world should brace to see more of these startups coming into business more frequently.
