Traditionally, gaming online has required large investments and a high entry threshold in order for a player to jump into a game. While that is no sweat for some, others may be more ambivalent about taking risks, prefer to gamble on their own terms, and wish to customize more of the gameplay beyond simply just placing a bet and hoping for the best.
More recently, microtransactions have been introduced, taking pages out of the playbooks of modern video games and business practices, which have substantially added to the excitement in iGaming as well as generating substantial additional revenue for casinos. Today we’re going to examine how these little purchases actually work.
What are microtransactions?
These are small, often incremental purchases made in an online environment, usually involving the exchange of real money for in-game items, credits, or features. Rather than having to commit large, upfront payments, players now have the chance to gamble their way. Transactions typically involve amounts ranging from a few cents to a few dollars and can be completed quickly and easily through secure digital payment systems.
One of the most common forms of these is chips for players to bet with. They can be used in games like:
- Video poker;
- Blackjack;
- Roulette;
- Aviator game apk.
Examples of microtransactions include:
- adding virtual goods like special avatars or skins, entailing merely cosmetic value or prestige;
- bonus spins;
- power-ups that enhance a player’s winning odds.
Being able to place smaller bets allows people, especially those without much of a budget, to spread out their bets and enjoy the time spent. As a result, operators enjoy a steady stream of revenue from a new audience.
How microtransactions are reshaping online gambling business models
This new trend is orienting casinos on diversifying their deals. The more target segments that these outfits adapt to, the more that they will win themselves overall.
Subscription tiers
This is right in line with the business world, as many people may view a subscription to a conventional online service as too costly as it provides more than they need and comes at an unnecessarily high cost. On the flip side, there are other clients that require extensive features and have high-load environments to support. Then there are those who are willing to pay but don’t want to pay a dime more than for exactly what they need.
This emphasizes the necessity to accommodate the very broad range of users seeking a service. The same applies to casino gamblers. Many poker and sports betting apps have begun to offer subscription services that provide players exclusive access to content, premium features, or loyalty rewards.
These may include:
- weekly or monthly access to tournaments;
- VIP privileges;
- daily bonuses.
Loot boxes
This idea has been borrowed in video games, where the protagonist normally explores a venue and is able to collect boxes full of items whose contents are unknown in advance. This is a feature now commonly encountered in slot machines and digital poker where players purchase these loot boxes with unknown rewards inside. People often have a hard time turning these down due to the fear of missing out.
Freemium model
Some people are very skittish when proposed the idea of gambling to win real money. They simply are very risk averse. Despite this, they will still be more than happy to enjoy slots, blackjack, or poker. In fact, a lot of people traditionally play these games at parties, campsites, and at home already. You may think that there is no benefit in this for casinos. You’d be terribly mistaken. In fact, social casinos, casinos racked up 7.39 billion dollars in 2023.
This is because players willingly deposit real money in a variety of microtransactions within social casinos.
They do so for the following purposes:
- Buying additional credits in social casino games;
- Purchasing avatars and skins;
- Paying for access to participate in tournaments, awarding trophies, badges, and bragging rights;
- Gaining access to more sophisticated versions of games.
The business model of social casinos is right in line with that of other freemium services, which aim to give new users a taste of the benefits the service offers before offering them different tiers of the service.
Ethical Concerns and Regulation
The broad menu of executable actions is furthermore informing casinos more about players. This information enhances the personalization of offers, promotion tailoring, and optimization of the overall user experience. This same information is also used to offer dynamic pricing. Regulatory authorities, particularly in Europe, are thus zeroing in on operators and are watching what types of practices they employ to ensure they’re not preying on people.
Certification authorities thoroughly inspect casinos’ internal processes on a regular basis to prevent unethical practices. In the EU, people also enjoy GDPR rights, which allows them to demand businesses show what information they’re storing on them and they have the right to order that information deleted and be forgotten. Gambling addiction, instituted betting limits, and self-exclusion measures also exist to protect players.
The Future of Microtransactions in Online Gambling
Still, one of the problems in regulation as well as one of the most thrilling aspects at the same time for player entertainment, is the boisterous speed at which new genres of casino games are popping up.
Blockchain technology
This is a godsend for fast microtransactions as cryptocurrency can be paid with rock-bottom fees and at lightning speeds, far more beneficial than using traditional banking systems. They also serve for enhanced security and transparency as all transactions are written on the ledger and can be verified in real-time. Whole tokenized economies have been created which enable casino games to evolve in accelerated fashion.
Increasing personalization
AI will allow vast amounts of player data to be analyzed to make for even more diversified classes of microtransactions and betting opportunities. Already, as soon as new games come out, casinos know what players prefer from their playing histories. They thereby offer these players free spins and bonuses if they try out these brand-new games in order to give them a new audience. The same is also done for high-profit-margin games.
Virtual reality & the Metaverse
The greater potential for enjoyment in what seems to be a whole new world surrounding players will certainly incentivize them to spend more on their avatars, virtual goods, and even accessories and clothes. This will be particularly relevant for those who enjoy gambling mainly for the social aspect of it. People will be able to practice languages with each other, seemingly in person and socialize in the same way that they would’ve previously engaged on Reddit.
This has given rise to a whole new virtual world termed the Metaverse. People will even go so far as to pay to play sports in the Metaverse as part of clubs.
More sophisticated gamification
Levels, challenges, leaderboards, and side bets will grow much more sophisticated. People will pay money just to join certain social groups organized for fans of particular TV shows and celebrities.
More extra bets
Casino games have already included side bets into their games to add an extra sense of dimensionality to the games. In reality, though, players should strategically avoid these as they offer greater dealer advantages. However, from an entertainment standpoint, they are difficult for players to resist.
