Home Gaming PartnershipsExploring Revenue Leakage from Fake Games in the Gambling Industry

Exploring Revenue Leakage from Fake Games in the Gambling Industry

by Sienna Marques
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Exploring Revenue Leakage from Fake Games in the Gambling Industry

In the latest episode, Robin Harrison and Ed Birkin are joined by Jack Crabtree, head of sales at GameCheck, to delve into the challenge of fake games within the gambling industry.

Jack describes how GameCheck operates by detecting fake or manipulated slot games that appear on unlicensed or grey market websites. For operators providing legitimate games, GameCheck offers a certification badge known as the SEAL. This badge helps to demonstrate authenticity, and Jack notes that it has gained significant traction in less regulated markets, particularly Turkey.

Brazil has emerged as one of the most critical areas scrutinized by GameCheck, with the organization identifying over 6,800 counterfeit games in this region alone. Jack discusses factors contributing to Brazil's explosive growth and how it has attracted unscrupulous operators.

GameCheck collaborates with both providers and operators, but recently, it has transitioned from strictly protecting revenue for suppliers to a model that fosters sustainability. This shift marks a significant evolution in GameCheck’s approach, which listeners can learn more about in the discussion.

According to data from GameCheck and H2 Gambling Capital, the total number of identified fake games worldwide stands at 8,500. Jack mentions, however, that the actual number is probably much higher. The prevalence of these issues primarily affects grey or unregulated markets. Research conducted alongside BetBlocker revealed that most sites not included on its blocklist were discovered to be hosting fake games.

Listeners can also expect to hear a figure Jack has in mind regarding the revenue lost to these fraudulent games. He highlights comments from Evolution's CEO, emphasizing that game cloning represents a significant revenue loss, reducing the return-to-player percentage to zero for every cloned instance, as the company receives nothing from these activities. With the pressure mounting on studios from slim margins and an overflowing content pipeline, the impact of fake games may soon become an issue they cannot disregard.

The episode concludes with candid exchanges that almost didn’t make the edit, including a playful debate between hosts about their favorite childhood cartoons, notably preferring Thundercats over He-Man.

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