The term gamification is increasingly prevalent in the gambling sector, raising the question of whether it is merely a trend or an effective strategy for enhancing key performance indicators. Mares Shamzhy, CEO and partner at LalaStars, provides insights.

Mares, could you clarify what you mean by gamification and its necessity for users?​

To begin, it’s important to recognize the evolution of the typical online casino user. A decade or more ago, a basic offering of game content and payment methods sufficed. Eventually, initial mechanics aimed at enhancing user experience, such as internal tournaments and jackpots, emerged.

Today’s online casino audience is younger, with current VIP players primarily born in the late 1980s and early 1990s. This demographic has grown up with video games and is more receptive to innovative mechanics and gaming experiences. Therefore, those who can successfully integrate these elements will gain a competitive edge in attracting active users. Gamification represents a fusion of traditional online casino features with gaming industry dynamics, and the more seamlessly these experiences are merged, the better the potential outcomes.

What forms of gamification do you consider significant? ​

There are numerous forms. Our projects incorporate one or more of the following elements:
  • Missions
  • Daily Wheels of Fortune
  • Achievements
  • Gift shops
  • In-game currency
  • Races (mini-tournaments)
  • Level-up rewards (scratch cards, Wheels of Fortune, loot boxes, etc.)
Users show considerable interest in tasks, quests, and rewards, which can be exchanged for real prizes. Later, I will share statistics that highlight their impact on key metrics.

What is the primary objective and benefit of gamification for a product? ​

Every gamified activity has a specific aim. For instance, “missions” in a game format guide users through a pre-determined flow—from confirming their phone numbers for future communication to extending gameplay duration and increasing average deposits and bets.

“Achievements” serve as mechanics for users to earn “medals” that do not influence bonus values; they are illusory. While these have no tangible worth for the casino, they motivate users to continue playing and create a sense of progress and success, even if actual winnings are modest. This leads to higher engagement levels, maintaining user interest for longer periods. In summary, the goal is to keep users on the site for as long as possible and encourage their return as quickly as feasible. Gamification plays a crucial role in this.

What proportion of users engage with gamification? ​

Focusing on Tier-1 markets, our affiliate program reveals that, on average, 43% of users interact with gamification features at least once during a gaming session. Notably, 29% of these are VIP players, which is a significant figure.

Moreover, the average activity level of players who utilize gamification (the same 43%) is considerably higher, as these users visit the platform approximately 3 to 3.5 days a week, compared to just two days a week for those who do not engage with these features.

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How does gamification encourage user retention in casinos? ​

There exists a direct link between the frequency of a user's visits and Average Revenue Per Paying User (ARPPU). By effectively implementing “deposit traps” on the site, increasing the frequency of user visits correlates with higher profits per user.

In addition to gamification, we utilize:
  • Wheels of Fortune, which users can spin for free every 12 hours.
  • Email and SMS reminders, which do not negatively impact the user experience (avoiding spam) and achieve an open rate 8.2 times higher than standard promotional messages.
  • We also offer rewards (achievements) for daily site visits, incentivizing users to maintain a streak of daily interactions (the longer the streak, the greater the rewards). Rewards may include internal currency, achievements (medals), or enhanced deposit bonuses.

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Another noteworthy example involves targeting audiences often overlooked by competitors, which typically limits outreach to promotional emails—namely, non-first-time deposit (FTD) users. In all LalaStars affiliate program projects, we emphasize engaging these users in gameplay. For instance, tournaments featuring internal currency provide opportunities to win real prizes at week’s end. Although the costs for such tournaments range from €500 to €1000 weekly, they effectively acclimate players to the product, fostering trust and encouraging deposits.

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In summary, how has the adoption of gamification influenced key brand metrics? ​

In fact, metrics such as Lifetime Value (LTV), Monthly Active Users (MAU), retention rates, and average deposits have all seen tangible increases. I don’t want to resort to clichés or assert that “the best score is the high score of our affiliate partners,” but in this instance, it holds true. Our brands would not achieve top rankings or win awards like Casino of the Year if they did not perform well in terms of conversion. We continually strive to ensure that metrics such as click-to-deposit rates, average deposits, and others remain among the best in the industry.