Home Gambling Industry InsightsImpact of Fake Games on Revenue Leakages in Gaming

Impact of Fake Games on Revenue Leakages in Gaming

by Sienna Marques
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Impact of Fake Games on Revenue Leakages in Gaming

In the latest episode, Robin Harrison and Ed Birkin host Jack Crabtree, the head of sales at GameCheck, who discusses the company's operations and the significant effects of counterfeit games on the gaming industry.

Crabtree elaborates on how GameCheck identifies fraudulent or altered slot games that are being offered on unlicensed and grey market websites. For operators that provide legitimate games, GameCheck has introduced the SEAL, an independent certification badge that certifies authenticity. Crabtree notes that this SEAL is gaining considerable traction in less regulated regions, particularly Turkey.

Additionally, Harrison highlights that Brazil has emerged as a major focus for GameCheck, where over 6,800 counterfeit games have been uncovered. Crabtree explains the reasons behind Brazil’s rapid growth and how it has created an environment ripe for illicit operators.

GameCheck collaborates with both operators and suppliers, recently moving away from a purely revenue protection model for suppliers toward a more sustainable approach.

A report from GameCheck, alongside H2 Gambling Capital, reveals that approximately 8,500 fake games have been identified globally, while Crabtree suggests the actual number is likely much higher. The problem is especially acute in grey or unregulated markets, with research from BetBlocker indicating that most unlisted sites are indeed hosting fake games.

The critical question raises concern over how much revenue has been siphoned off from the industry due to these counterfeit games. Crabtree has a specific figure on this, which listeners will hear in detail during the episode. He also references statements from Evolution's CEO, who pointed to game cloning as a major contributor to revenue loss, effectively dropping its return to player (RTP) rate to zero for each cloned game, since the company does not benefit financially from these clones.

As studios face mounting pressure from narrowing margins and a crowded content landscape, it raises the question of whether they can afford to overlook this looming issue.

Before the episode concludes, listeners can catch some candid conversation that nearly didn’t make the cut, featuring a humorous debate over the merits of Thundercats versus He-Man.

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