Home iGaming InsightsImpact of Fake Games on Revenue Loss in the Gaming Industry

Impact of Fake Games on Revenue Loss in the Gaming Industry

by Sienna Marques
0 views 2 minutes read
Impact of Fake Games on Revenue Loss in the Gaming Industry

In the latest episode, Robin Harrison and Ed Birkin welcome Jack Crabtree, the head of sales at GameCheck. He shares insights on GameCheck’s initiatives and highlights the significant impact of counterfeit games on the gaming industry.

Jack elaborates on how GameCheck identifies fraudulent or manipulated slot games operating on unlicensed or grey market platforms. To support operators offering legitimate games, GameCheck provides the SEAL, an independent certification badge that confirms game authenticity. Jack notes that the SEAL is particularly popular in less regulated regions like Turkey.

Brazil stands out as a major area of concern for GameCheck, identified as the biggest hotspot, with over 6,800 counterfeit games detected in that market alone. Jack discusses the factors contributing to Brazil’s rapid expansion and why it attracts rogue operators.

The company collaborates with both game operators and suppliers, shifting its focus from solely protecting supplier revenue to developing a more sustainable model. Listeners will learn about this transformation.

Data from GameCheck and H2 Gambling Capital indicates 8,500 fake games are detected worldwide, although Jack believes the actual number is likely even higher. The prevalence of this issue is most pronounced in grey or unregulated markets. Notably, research with BetBlocker reveals that many sites not included on its blocklist are actually hosting fraudulent games.

But how much revenue is being lost due to this? Jack has a figure he believes is staggering, but listeners need to tune in for the details.

Jack also mentions comments from Evolution’s CEO who identified game cloning as a major contributor to revenue loss, effectively reducing the return-to-player rate to zero for every cloned game, leading to a total loss for the company.

As studios grapple with tightening margins and an oversaturated content pipeline, this emerging issue raises urgent questions about their sustainability. Before concluding, listeners should stay tuned for an unrestrained discussion that almost got cut, including a playful debate between hosts about their favorite childhood cartoons, hinting at one host's preference for Thundercats over He-Man.

You may also like