Embrace social gaming or face decline, industry veteran warns Asia's land-based 바카라s
Traditional land-based 바카라s across Asia, particularly in Southeast Asia, are at a critical crossroads. Industry veteran Shaun McCamley (featured in the image above), founder and managing partner of Euro Pacific Asia Consulting, issues a stark warning: without a robust digital strategy, specifically embracing social gaming, these traditional giants face an inevitable decline in revenue.
While speaking to us on the sidelines of SiGMA Asia 2025, McCamley hinted at a profound shift in the region’s gaming landscape, where digital engagement is rapidly eclipsing the allure of physical 바카라 floors.
The digital tsunami: e-Gaming outpaces brick-and-mortar
The urgency for land-based operators to adapt is vividly illustrated by recent data from the Philippine Amusement and Gaming Corporation (PAGCOR). For the first time in history, the electronic gaming (e-games and e-bingo) sector has surpassed traditional brick-and-mortar 바카라s in revenue. In the first quarter of 2025, e-gaming generated P51.39 billion, accounting for 49.36 percent of the total Gross Gaming Revenue (GGR), outpacing licensed 바카라s, which contributed P49.28 billion (47.32 percent).
“This represents not just revenue growth but how consumer behaviour continues to shift towards digital, on-demand gaming experiences, accelerated by greater access to mobile technology,” stated PAGCOR Chairman and CEO Alejandro Tengco. This “stunning shift” is a clear indicator that player preferences are moving online, a trend McCamley stresses as a direct threat to land-based operators who fail to adapt.
“If the land-based 바카라 operators here do not have a proper strategy that’s been well thought out, has been well structured… then they are going to be facing very challenging times,” McCamley asserted.
PIGO paradox: Costly and restrictive licenses
While some Asian jurisdictions offer online gaming licenses, they often come with significant drawbacks for traditional operators. In the Philippines, for instance, the Philippine Inland Gaming Operator (PIGO) license is “very, very restrictive and it’s expensive,” McCamley noted. Beyond substantial setup fees, operators face ongoing taxes on commissions.
A major limitation of the PIGO license is its player restriction: it primarily allows operators to cater only to Filipinos, with non-Filipinos requiring registration as members with a specific land-based 바카라. This makes it “incredibly restrictive and difficult” in broader online gaming terms. The Executive Order 74, mandating the cessation of all Philippine Offshore Gaming Operators (POGOs) by 31 December 2024, further stresses the dynamic and often tightening regulatory environment in the region, driven by concerns over unregulated activities like financial scams and money laundering.
Social gaming: Billion-dollar opportunity
In stark contrast to the complexities of real-money online gambling licenses, social gaming platforms offer a strategic lifeline. “If we were to look at a social gaming platform, fully branded to the property, no license is required because it’s not a gambling product,” McCamley explained. This crucial distinction allows operators to bypass stringent regulatory hurdles and costs.
The Philippine government, according to McCamley, is “very supportive of properties offering social gaming platforms because it doesn’t attack weak people who have a gambling problem.” This aligns with responsible gaming principles, making social platforms a more palatable option for governments concerned about the societal impact of gambling.
The financial potential of social gaming is immense. “Considerable projections in the next two years, just in Southeast Asia, $1 billion have been projected its social catering revenues,” McCamley highlighted. The Asia Pacific Social Casino Market alone is expected to grow from $1.94 billion in 2024 to over $4.14 billion by 2030, with a robust 13.3 percent Compound Annual Growth Rate (CAGR). India’s gaming market, largely driven by mobile and social gaming, is projected to exceed $1 billion in 2025 and reach $9.2 billion by fiscal year 2029.
The core differentiator for social gaming is that “there are no winners. Nobody can cash out their winnings. Their winnings are virtual currency,” McCamley clarified. This model allows for significant revenue generation through in-app purchases (up to 80 percent of revenue) without the complexities of traditional gambling licenses. Companies like Aristocrat, Light & Wonder (through Sci바카라), and 바카라tika have already capitalised on this trend, with social gaming contributing significantly to their overall revenues.
The “Grey Area” and growing regulatory scrutiny
While social gaming offers a “softer regulatory oversight”, the line between legitimate social gaming and illegal gambling can blur, particularly with “sweepstakes” models. McCamley noted that sweepstakes can be “a little bit grey because… players can cash their qualified loyalty points in return for cash. That’s how they get around the law a little bit“.
However, governments are increasingly looking to “close that loophole.” A recent example is the New York Attorney General’s crackdown, which led to the shutdown of 26 online sweepstakes 바카라s. These platforms were deemed illegal because they allowed virtual coins to be exchanged for cash or prizes, violating state gambling laws despite being labelled “sweepstakes“. This action, supported by state gaming commissions and lawmakers, highlights a growing national trend against such models, with states like Montana, Connecticut, and Louisiana also moving to ban them.
The Social and Promotional Games Association (SPGA) has expressed “disappointment” with such decisions, arguing that sweepstakes promotions are “not gambling under federal law and are legally permitted in the overwhelming majority of US states” and that a “blanket enforcement action” stifles innovation.
McCamley himself advises moving away from a sweepstakes model in the long term, as he doesn’t believe it will survive in its current format.
Challenges and opportunities for land-based operators
For land-based 바카라s, integrating social gaming is not just about new revenue streams; it’s about enhancing player loyalty and building cross-platform engagement. Operators can leverage social gaming to introduce casual gamers to 바카라-style games in a risk-free environment, potentially serving as a “funnel” to real-money platforms. They can also use it to retain engagement with players who prefer not to gamble with real money. Strategies include loyalty programs that allow players to earn rewards in social 바카라s, redeemable at land-based properties, incorporating interactive gaming technology, and leveraging social media for community building.
Strategies are implemented through loyalty programs that enable players to accumulate rewards within social 바카라s that can be redeemed in brick-and-mortar operations, including using interactive gaming technology and social media for building communities.
But the journey is not smooth. Asian land 바카라s are confronted with intense regional competition, infrastructure limitations, and continued regulatory ambiguity. Cyber threats such as hacking and data breaches also cast a shadow over web-based operations. In order to remain competitive, operators need to augment their products with non-gaming facilities and diversify revenues, as evidenced by Macau’s aggressive drive to have non-gaming sectors contribute 60 percent of its GDP by 2028.
Beyond social gaming
While social gaming offers immediate opportunities, the broader digital landscape continues to evolve. Technologies like Artificial Intelligence (AI) are being leveraged for personalised gaming experiences, predictive analytics, and responsible gambling tools that monitor risky player behaviour.
However, not all digital avenues are equally mature or viable. McCamley expressed scepticism about platforms that rely solely on NFTs and cryptocurrencies for their business model. “If I was an investor, I’m not sure I would be investing my money in a platform that only works with NFTs and only works with cryptocurrencies,” he stated, acknowledging that while some, like Stake.com, are successful, it’s “not there yet” for mainstream adoption, especially in Asia. Challenges for blockchain gaming and NFTs in Asia include regulatory hurdles, varying blockchain adoption rates, scepticism towards 바카라-to-Earn (P2E) models, and the need for high-quality game design and seamless user experience.
Digital imperative for survival
The Asian gaming market’s digital revolution is no longer in question. With e-gaming revenues skyrocketing and player habits converging towards mobile and social platforms, land 바카라s have a sharp imperative: adopt digital integration, especially social gaming, to stay in the game and stay profitable. Though regulatory environments continue to be complicated and in flux, the strategic benefits of social gamingits convenience, monetisation capability, and potential to encourage loyalty without outright gambling categorisationare such that it is a central element of any forward-thinking gaming strategy in Asia. For traditional operators, the choice is clear: adapt and innovate, or risk being left behind in the rapidly accelerating digital current.
