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Exploring Fake Games and Revenue Leakage in the Gaming Industry

by Sienna Marques
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Exploring Fake Games and Revenue Leakage in the Gaming Industry

In the latest episode of the podcast, Robin Harrison and Ed Birkin welcome Jack Crabtree, head of sales at GameCheck. Jack discusses the company's operations and the significant threat posed by fake games in the gaming industry.

GameCheck specializes in identifying fake or manipulated slot games on unlicensed or grey market websites. For legitimate operators, the company provides the SEAL, an independent certification badge that indicates authenticity. Jack notes that this SEAL has seen considerable adoption in less regulated markets, particularly in Turkey.

Brazil has emerged as a focal point for GameCheck, with the company detecting over 6,800 fake games in that market alone. Jack explains that Brazil’s rapid growth has created an environment that is particularly conducive to rogue operators.

GameCheck collaborates with both operators and suppliers but has transitioned from a model focused strictly on revenue protection for suppliers to a more sustainable approach, which Jack elaborates on during the episode.

Data from GameCheck, in conjunction with H2 Gambling Capital, estimates that there are around 8,500 fake games present globally, though Jack believes the actual number could be even greater. This issue is especially severe in grey or unregulated markets. A significant insight from research with BetBlocker revealed that many sites not included on its blocklist were discovered to be hosting fake games.

When it comes to revenue loss, Jack has a specific figure in mind, but listeners will need to tune in to get the details. He also highlights comments from Evolution's CEO, who identified game cloning as one of the primary contributors to revenue leakage, effectively bringing the return-to-player (RTP) to zero for every cloned instance as the company gains no financial benefit from such activities.

With gaming studios already facing challenges due to shrinking margins and an oversaturated market, the issue of fake games is one they may soon have to address urgently.

As the episode winds down, listeners can catch an open conversation that nearly didn’t make the final edit, including a light-hearted preference for Thundercats over He-Man from one of the hosts.

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