[Edaily Reporter Shin Ha-yeon] #WGames is accelerating its profitability by rapidly expanding the share of DTC (Direct-to-Consumer) revenue in its social casino business.

W Games announced on the 12th that the share of DTC revenue in its social casino business reached 38.7% as of the first quarter of 2026. This represents an approximately fourfold increase compared to the same period last year.

The company explained that the in-app external payment system, which it began fully implementing this year, has been a key driver of the growth in DTC revenue. W Games has been sequentially introducing in-app external payments on Google and Apple platforms since January of this year.

Initially, the feature was rolled out primarily to core VIP users, but the company has since expanded its scope to include general VIP users. The system is designed to allow users to seamlessly switch to external payments within the game, and once a user selects an external payment method, the same payment method is automatically applied for subsequent transactions, resulting in a high retention rate.

The expansion of the DTC share is leading to improvements in the cost structure. W Games’ variable cost ratio for the first quarter of 2026 stood at 25% of revenue, a 6 percentage point improvement from 31% in the same period last year. Analysts note that as the burden of platform fees decreases, a structure where revenue growth and improved profitability occur simultaneously is taking full effect.

The global mobile platform environment is also becoming more favorable for DTC expansion. As platform regulations continue to evolve—driven by moves by major U.S. platform providers to allow external payments and the implementation of the European Union’s Digital Markets Act (DMA)—strategies to strengthen in-house payment channels are spreading across the global gaming industry.

W Games is currently expanding the countries and user base where DTC is applied in phases. Considering that DTC revenue accounts for approximately 40% of top global social casino companies, analysts note that W Games is rapidly approaching a revenue structure on par with global standards.

A W Games representative stated, “Since the introduction of external in-app payments, the proportion of DTC revenue has expanded rapidly, and the effects of improved revenue structure are becoming visible.” They added, “Based on the stable cash flow of our social casino business, we plan to continuously strengthen our DTC competitiveness to simultaneously expand profitability and business stability in the global market.”