Social gaming: earning money on games in social networks | Law&Trust International

What is social gaming?

Social gaming can be described as the organization of games that does not have a monetary interest. Social games have really skyrocketed in popularity over the past few years. They are distributed on social networks, such as Facebook, on specialized platforms, which do not need to be installed on a computer or smartphone; to run them, you only need a standard browser on your device. These are the so-called browser social games. The main feature here is an online game, its multiplayer nature, and ease of accessibility from different devices.

Details of earnings on browser-based games.
Details of earnings on browser-based games.

The differences between classic and social gaming

How to make money on a casino in a social network?
How to make money on a casino in a social network?

The main differences are the fact of receiving a prize and the nature of the game itself.

  1. A game on social networks can contain absolutely all the signs and mechanics of a game of chance but there will not be one of the main elements in it - receiving a prize in the form of cash or the value of cash;
  2. Socialization is a certain community, the interaction of a group of people close in interests, family ties, etc. That is, in a legal sense, this means that the main goal is not a fact of the game process, but a pastime, respectively, receiving a prize is not the main goal;
  3. The result of the game - social games differ in that there is no goal to complete the game, to reach the finals. They are characterized by duration, that is, a person goes through different levels, stages and as a result, there are no winners, new tasks and levels simply appear, and the game does not essentially end.

How does the monetization of social gaming happen?

Earnings on games on social networks are generated using built-in purchases, advertising, lead generation, advertising of third-party products within the game.

Monetization features

  • Virtual goods cover a wide range of items. It can be bonuses, additional chips or coins, accessories for avatars, decorative objects, or virtual gifts that players can send to each other. For example, a social poker application can provide players with daily bonus chips for a game, and as soon as a player runs out of free chips, he can pay real money to buy more virtual currency to continue playing without waiting for topping up with free chips;

  • Advertising (banner and contextual): advertising inventory is offered to advertisers when an ad is displayed or when a user clicks on it, money is spent/earned;

  • Lead generation: the uniqueness of lead generation in social games is that you will see offers to subscribe to goods or services in exchange for virtual gifts - it’s some form of promotion;

  • White label: the developer creates a game but leaves it open for branding. Then someone can buy or rent the game, probably with his own monetization plans and brand it the way he wants.

Legal aspects of the organization and launch of games on social networks

In order to understand whether your game really does not require licensing and whether it is gambling, it is necessary to analyze the legislation of the specific country. Analysis of the legislation, as a way to minimize risks, is the basis for starting an activity.

Further, after the country and its legislation are selected, it is necessary to register the company. The company is registered in order to have the right to provide client services, distribute content, and conduct transactions. In any case, in order to conduct activities, it is necessary to pay game developers a fee for their work, for advertising, marketing, promotion on the Internet. And for this, you will need to have a legal entity, because you will need to open an account with a bank. And to open a bank account, you should have a legal entity.

Stages of getting started

  • First, you need to determine the exact type of activity, analyze the characteristics of the games;
  • The next step will be the selection of the country for the company registration. The country is selected based on the analysis of legislation in the field of social gaming to be compliant with the local regulation;
  • When a country is selected, the company is registered and the necessary documents are prepared to start business activity.

Benefits of working with Law&Trust International

Choosing the right jurisdiction requires expert assessment and the experience gaming sphere. Being a legal international company, which has been on the market for over 16 years, our lawyers have extensive expertise in legal corporate matters, such as legal consulting in gaming sphere in different countries, company registration, opening bank accounts, merchants etc.


Our lawyers took part in drafting of law in gambling sector in different countries, therefore they will provide an expert assessment of your business and quality services to start conducting business.


Our clients

Our team

Svetlana Artemenko
Legal Adviser
Vladyslava Volianyk
Junior Legal Counsel
Annie Lingerman
Senior Lawyer
Ekaterina Bogatova
Aleksander Shushin
Anastasia Alexeeva
Victoria Zhelezova
Branch Director, HR
Read more
Dariia Grib
Legal secretaries & Receptionists
Read more