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A New Age of iGaming is Coming



Why Development Studios Should Embrace Regulated Video Games


Those of you who know me, have read my posts or attended my presentations at gaming shows will know that I have been predicting that iGaming is on the verge of a revolution for some time now. This is a rapidly evolving sector, and while everyone knows that change is imminent, not everyone sees the opportunities that are available. To that end, let us explore why Regulated Real-Money Video Games (RMVGs) are not simply a necessity, but also a golden opportunity for game developers.


Navigating the iGaming Landscape

There is a massive, unregulated industry of real money gaming, often referred to as skill-based gaming, that is worth billions of dollars and is growing daily. There are, however, some significant challenges associated with this market. There is a large number of gray operators on the market, ranging from very reputable organizations to outright scams. The use of cryptocurrency further complicates the situation. This creates a murky environment where consumers and regulators struggle to differentiate the good from the bad. This is where regulation provides clarity and safety to both players and developers.


The Dilemma for Game Developers

Today, game developers face significant challenges, particularly smaller developers. With skyrocketing costs and a saturated market, AAA games have challenging economics. This is particularly true of the mobile app stores, where there are literally dozens of new titles available each week, making visibility virtually impossible. What is the solution?


The Promise of Regulated Competitive iGaming

Regulated competitive iGaming, covering everything from skill-based to chance-based games, presents a compelling solution. Here’s why:


  1. Wide-Open Market and First-Mover Advantage: This space is a huge playground with relatively few players. Early entrants have a significant advantage in getting noticed, securing a foothold, building a loyal player base, and generating substantial revenue before the competition heats up.

  2. Revenue Potential: Even with a modest development budget, the potential revenues can be substantial. The economics here favor smaller, more agile developers.

  3. Knowledge Moat: While the space is not easy to understand for new entrants and does require licensing, the knowledge base you will acquire will create a significant moat over those who follow.

  4. Innovation Opportunities: The market allows for creative game designs and innovative features that can set your games apart from others.


I observe a genuine sense of excitement about what's to come among regulators and compliance organizations in the iGaming industry. Legislators are eager to clean up the gray market space, protect players, and, of course, generate revenue for the government. Because of this, there is no doubt in my mind that we will see the emergence of the next Electronic Arts or Activision within the next few years, specifically tailored for the iGaming industry.


Regulation: A Protective Shield

Regulation is often viewed as a burden by many, however, it actually serves a very positive purpose. Both players and developers are protected by regulation in the following ways:


  • Ensuring Fair Play: Players can trust that the games are fair and that they are playing in a safe environment. In contrast to today's real money gaming market, this is quite the opposite.


  • Protecting Developers: The use of clear guidelines and standards reduces the risk of legal disputes and ensures a level playing field against competitors.


  • Building Trust: A regulated market builds trust with consumers, attracting a wider audience who might otherwise be wary of iGaming.


Addressing the Controversy

It is true that the integration of gambling elements into video games is controversial. Nevertheless, it is already taking place in the gray market, where there is minimal regulation and lawsuits are becoming increasingly common. Even though some naysayers are opposed to regulation of this space, establishing clear rules and protections is morally correct. Embracing regulation will enable game developers to validate the practices of game companies operating in the real money industry, ensuring all participants are protected, games are fair, and players are of legal age.


The Benefits

The future of competitive regulated video game iGaming offers game developers unprecedented opportunities. By entering this rapidly growing market early, studios will be able to distinguish themselves from their competitors and achieve significant returns despite lower development costs. As pioneering game developers navigate the regulatory landscape and embrace competitive iGaming, they will be able to secure their position in this lucrative industry. Our collective goal should be to ensure a safe, fair, and prosperous future for all in this exciting emerging sector of iGaming.

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