social gaming
jul25 From dial-up proxy betting to social gaming, how do land-based operators evolve??
The gaming floors in Asia have seen a radical redesign over the past 20 years, shifting increasingly away from the physical space to options more accessible from a distance. Proxy bets, live dealers, online casinos and now – the non-gambling sibling – social gaming. Industry veteran Shaun McCamley notes that land-based operations have been slow to move into the social space, despite the many lucrative options it offers.
A tidal shift has been seen in recent years in the amount of focus that can be placed on VIP play, most accentuated in the junket space, as Macau – the world’s casino mecca – eviscerated the sector and imprisoned those it deemed to be flagrantly flaunting its benefits (whilst breaking the law).
The Philippines’ move to get off the Financial Action Task Force (FATF) grey list – which was effective, also saw the shuttering of offshore gaming operations in the country (POGOs), even as its Inland Gaming Operators (PIGOs) found new territory for growth.
These factors, with a particular focus on junkets, have left land-based operators seeking new territory (like PIGOs), one that comes in the digital realm.
But for McCamley, they don’t yet appear to be harnessing the potential.
When asked which Asian land-based operator was doing best in the sphere, the gaming veteran noted that “the owners and the CEOs don’t have online backgrounds. They’re fantastic executives. They do a wonderful job in building the properties and driving revenues […] But when it comes to online, they don’t understand”.
McCamley opines that this leads to the responsibility for online operations shifting to lower departments, oftentimes ending up on the plate of IT (information technology).
The executive notes that this strategy is vastly different from a company like DigiPlus, which has customized its offerings for the online environment, and is unlikely to see strong competition from land-based operators who now want a piece of the pie.
Social gaming
Real money gaming hasn’t been the only focus that operators moving into the online space have targeted. And companies like Aristocrat and Light & Wonder have seen rampant success from their social gaming forays.
“I was told by one of the executives at Light & Wonder that their social gaming business now outpaces their global slot business,” notes McCamley.
But what makes it attractive for the land-based operators?
“We all know that 80 percent of property’s visitors do not gamble […] But the majority join the property’s loyalty programs because they want to earn points.”
Having a social gaming vertical aligned with your property, with your brand, that’s linked directly into your loyalty program, that’s an amazing tool.
Shaun McCamley
Land-based operators have the advantage of pulling from a massive customer database, not necessarily gamblers.
“You don’t use the social media vertical as a means to try and convert them to a casino player […] The social platform that you work with stands alone in its own vertical, and it drives its own revenue”.
The beauty of it comes in how the framework is structured: multiple tiers, leaderboards, and ‘free’ money.
“What happens is, they get the platform to sell them more free money,” notes McCamley, referring to how free points are quickly used, prompting clients to purchase more to continue gameplay.
The free offering likely results in about 20-30 minutes of play, notes McCamley, while the options for a simple purchase to allow the punter to “feel like a VIP” – increasing amounts that can be used, for a price, guarantees ongoing engagement.
Plus, “the number one point to realize is that there’s no GGR […] there’s only gross revenues, which is even better. For every dollar you take, you hold on to 100 percent of it, and you’re operating costs are around 20-30 percent.”
Given that it’s not linked to gambling, “there’s no gaming tax to pay, there’s no profit tax. The only thing that you’re paying is your corporate taxes”.
And in-app purchases account for some 80 percent of the typical platform’s revenue stream, he notes.
Speaking from experience
McCamley has quite a bit of experience with VIPs, managing gaming operations for numerous operators and running his consultancy for over 24 years. From Perth to Hong Kong, to Macau, to Vietnam, Europe, the UAE, the executive has seen the ins-and-outs of multiple business models, and what leads to success.
In Perth in the 1980s, it was negotiating for higher table bet limits; in Macau in the 2000s it was studying their proxy betting environment – which were later pitched to authorities in Vietnam – successfully.
These strategies relied on the continued presence of VIP players, largely facilitated through junkets, something which is dying out throughout the region.
But what comes to fill the gap? How do you capture that mass and premium?
Entertainment is a huge draw, although fixed shows such as Melco’s House of Dancing Water in Macau – despite being a massive endeavor – are “always going to be a challenge, particularly because the level of investment that’s gone into that”.
“You have to be very careful. I that we all agree that entertainment is an important part of the product, but it’s the level of entertainment that you bring in for your ROI, given the fact that revenues are a little bit challenging in today’s market,” notes McCamley.
VIPs (or premium mass players) are attracted to these events, allowing synergy for the shift from a performance venue to the casino floor.
But “you’ve got to build all the other aspects, have a full strategic plan to support the entertainment that you bring in”. This could involve gaming tournaments scheduled around the event, promotions and special perks that will keep the VIP player in town.
But how do you maintain that VIP player at your property?
“The one thing a VIP wants is recognition. It doesn’t matter where they come from […] that’s the key thing. And that’s what you have to be prepared to provide – the extra level of service and attention to detail. That’s what they want […] Look at the small things and make sure you get those right, and then everything else will fall into place”.
And whether it’s the land-based or the online sphere “it’s all about volume” – creating a particular demand for your product, a feeling of being special, and of getting the gratification that meets those needs. Some of which are much quicker to reach in the online space.
https://agbrief.com/intel/deep-dive/11/07/2025/from-dial-up-proxy-betting-to-social-gaming-how-do-land-based-operators-evolve/?utm_source=Asia+Gaming+Brief&utm_campaign=8732cd531c-AGB%3A+%2302181+Friday%2C+11th+July%2C+2025&utm_medium=email&utm_term=0_51950b5d21-8732cd531c-%5BLIST_EMAIL_ID%5D&ct=t%28AGB%3A+%2302181+Friday%2C+11th+July%2C+2025%29&goal=0_51950b5d21-8732cd531c-%5BLIST_EMAIL_ID%5D&mc_cid=8732cd531c&mc_eid=31e20475e6
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