Analyst Highlights Social Casino Boost in Aristocrat Success

With many gaming operators identifying the potential of social casinos, the popularity of the activity continues to grow. Blurring the lines between gambling and gaming, the regulation of social casinos varies from one jurisdiction to another.

Social casinos in particular were an important gaming segment for Aristocrat Leisure’s recent growth, an expert analyst revealed recently.

Social Casino Segment Propels Aristocrat’s December Results

That’s the opinion of Jefferies Equity Research’s analyst, Kai Erman, who was recently quoted by CDC Gaming. In a note to investors issued January 5, 2025, the expert highlighted the strong results reported by Aristocrat in December, positively impacted by social gaming. Notably, per Erman, the company reported a 2% increase in revenue during the last month. In contrast, its competitors saw decreases of approximately 10% in revenue for the same period.

The good performance of Aristocrat in December helped wrap up a successful quarter for the company. With social gaming playing an important role in that process, Erman said that this “indicates clear inflection and market share growth given competitor studios have seen a -10% revenue decline.” The good results, propelled by social gaming also helped persuade Aristocrat to explore options for potentially offloading certain non-core and casual assets.

The Company Continues to Grow Social Casino Market Share

Jefferies Equity Research’s analyst added that Aristocrat may be able to accomplish its targets “given the company continues to consolidate share in US land-based gaming, particularly in Gaming Operations, with positive signs from the rollout of Phoenix Link and market share indicators.”

Equally as important, Emran pointed to the company’s increasing market share in social casino games. The expert highlighted Eilers & Krejcik data, showing that Aristocrat’s market share in that particular vertical increased from 13.8% to 14.7% for the third quarter of 2024. In contrast, the company’s rival, Light & Wonder, reported a flat market share for the same period.

Recently, social casino games saw Aristocrat get into hot water in Australia. In July, the company was named defendant in a class-action lawsuit brought by William Roberts Lawyers, local media outlets reported.

Ultimately, the lawsuit alleged that popular social casino games offered by Aristocrat violated the country’s gambling laws. The legal claim also alleged that such games did not offer player protection tools such as time, deposit or spending limits and did not display what are the odds of winning.

Social casinos are also under scrutiny in the United States where health experts and other stakeholders warn about their impact on society. While generally speaking, social casinos do not require real money to be played, often a secondary virtual currency is offered, enabling players to win real money prizes.