“The gaming industry is at the dawn of a revolution – a paradigm shift marked by the rise of skill-based gaming that perfectly blends the thrill of traditional video gaming and casino gaming. However, this nascent sector must deftly navigate a labyrinth of global regulations to fully realize its massive potential.”
The gaming industry is witnessing an exciting evolution with the burgeoning rise of skill-based gaming. This new epoch, championed and embraced by a rapidly growing gaming community, is being used as a compass guiding us into the next frontier: that of the integration of traditional video gaming and casino gaming. Through a fascinating mashup of dexterity and randomness, a new hybrid genre of enticing gaming experiences is emerging. While a plethora of opportunities are ready to be explored, challenges abound, particularly on the regulatory landscape.
Skill-based gaming does not rely solely on chance, as is the case with traditional casino games. Instead, it is defined by its crucial requisite: skills. Skills such as strategy, coordination, and reflexes often become the deciding factors. Prima facie, it creates an enticing model where the fusion of skill and chance, strategy and luck co-exist, often blurring the lines between legal and illegal gambling.
This is where regulatory challenges begin to surface. Regulatory bodies worldwide have taken disparate stances on this brand-new frontier. In regions like the United States, where regulations have been historically stringent, the tides appear to be shifting, albeit slowly. States like Nevada and New Jersey have passed laws that make room for skill-based gaming in casinos, declaring that gaming can indeed encompass skill as a component. They are, however, clear on one word of caution: the house must not hold an ‘unbeatable’ edge.
Europe, on the other hand, has a more fragmented approach to regulating these games, due largely to the diverse cultures and legal systems across the continent. For one, the United Kingdom’s Gambling Commission considers games that require any element of chance to fall under the bracket of gambling, thus needing a license. The rest of the European Union, however, lacks a harmonized approach, with regulatory disparities evident between member nations.
Asia, a vibrant and fast-growing market for video gaming and gambling, has adopted a more circumspect approach. In some countries like Japan, any format that brings skills and gambling together flirts with legality, given the nation’s ultra-stringent anti-gambling laws.
This divergence in regulations not only creates a labyrinthine environment for developers, but it’s also a barrier stifling global uptake. The complexity of developing a game that navigates through these myriad laws is significant and can act as a deterrent to the growth of skill-based gaming.
Despite these challenges, opportunities are rife. For game developers, this new genre represents a largely untapped market with massive financial promise. Gambling companies realize the potential of attracting a younger audience, who otherwise might have remained indifferent to traditional casino games. Through the fusion of two worlds, they can now speak the universal language of gaming to millennials and Gen-Z, a demographic that grew up on PlayStations rather than Poker.
Simultaneously, online platforms are eyeing the opportunity to integrate e-sports and gambling. Platforms like Unikrn, one of the leading websites, augments the live viewing experience by allowing viewers to wager on players’ performances.
While the increased comfort with digital payments and the surge in home-based entertainment – propelled further by the COVID-19 pandemic – bode well for skill-based gaming, the road ahead is not devoid of challenges. The gaming industry and regulators need to strike a synergy that ensures fair game-play without smothering innovation. As this new zeitgeist in gaming unfolds, it’s clear that we’re on the cusp of an industry revolution, one that requires savvy game development, adept regulation, and above all else, player skill.
Sources:
1. NJCasino.com: ‘New Skill-Based Slots in NJ’
2. Reuters: ‘Japan’s Pinball Gambling Industry Rakes in 30 Times More Cash than Las Vegas Casinos’
3. EGR Global: ‘B2B Report: Skill-Based Gaming’
4. Statista Research Department: ‘Number of Video Gamers Worldwide 2021’
5. Deloitte Insights: ‘2021 Global Marketing Trends – Find Your Focus’
6. Unikrn Official Website
