INSIGHT
Winner Takes All
The time is right to diversify and monetise through real money skill gaming, writes Jim Dee, Executive
Director, Partnerships and Acquisition, at GSN Games.
Everyone loves to win. Whether
it’s on the sports field or in the boardroom,
no one wants to go home without the prize,
and more importantly, the satisfying feeling
that comes with the win.
Players of real money skill games deeply
share this sentiment. Real money skill
gaming is a growing category of online
games in which players pay an entry fee to
participate in a casual game tournament,
and can win cash prizes based on the
outcome of the competition. Popular
skill games include classics like Solitaire,
Hearts and Spades, universally successful
titles such as Bejeweled® 2 or Plants vs.
Zombies™, and online adaptations of
internationally popular TV game shows
suc h as Wheel of Fortune®, The Price Is
Right™ and Deal or No Deal™. Players
pay a tournament registration fee, starting
at 88 cents, to enter a tournament. The
most skilled player wins the prize, minus a
tournament management fee collected by
the operator hosting the games.
In order to comply with regulations
permitting online game tournaments
for cash and prizes in the US, operators
must ensure the outcome of the contest
is predominantly determined by the
participant’s skill, and not chance. This
goal is achieved through a combination
of proprietary technologies, patented
techniques, and in-house experience
‘skillifying’ games. In some cases,
the ‘skillification’ process involves
changing the rules of the game in order
to eliminate elements of luck without
changing the essence of what makes the
game fun and alluring.
Therefore, it’s important to emphasise
that real money skill games are not
considered ‘gambling’. Boasting a
favourable regulatory landscape, this
gaming category is considered legal in most
US states and European countries.
Real money skill games present
numerous benefits to players, no matter the
size of their appetite for winning.
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iGB Affiliate FEBRUARY/MARCH 2014
GSN Games, for instance, pays out
$500,000 in daily prizes through skill
game tournaments. Once a player chooses
their game of choice, they can select from
a wide range of tournament types, from
two-player challenges to competitions
involving dozens of players. Tournament
fees range from less than $1 to $50, and
prize amounts vary from tournament
to tournament. These choices provide
a personalised experience that both
challenges and rewards players.
The popularity and stickiness of skill
games presents a huge opportunity for
affiliates to profit. While the market has
existed for more than a decade, many
affiliates aren’t aware of the growing traffic
and earning potential.
The benefits to your business
Now that you have a better understanding
of what real money skill games are, we
can dive into the opportunities that this
category presents for your business.
Skill games offer three main benefits for
affiliates:
●● established, yet globally growing
an
player base.
●● desirable target audience similar
a
to iGaming.
●●
and a means to diversify your online
business strategy.
On a macro level, the leading entertainment
platforms are shifting. According to a 2013
report from the research-based consulting
firm, Frank N Magid Associates, Inc,
laptops and PCs are trending upward as the
growing, primary entertainment medium,
while television is trending downward. 70
percent of Magid survey respondents said
that they would “not be able to live without
a laptop or PC”, further demonstrating the
growing influence of online entertainment.
Moreover, 70 percent of all Americans play
some sort of online or electronic game, with
the largest growth occurring among the 35
to 64 year-old population, which increased
30 percent over the past two years. The
percentage of gamers increased across all
age groups, and for the first time ever, the
majority of all demographic groups play
digital games.
The rising number of mobile devices
and mobile gamers also translates into
a burgeoning mobile real money skill
games market. Cash tournaments on
mobile devices have started to appear in
the market, both through app stores and
mobile optimised websites.
There are a limited number of real
money skill gaming online operators,
which is likely due to the expertise and
access to top branded titles needed for
success in the sector. The open, uncrowded market makes now a great time
to get involved as an affiliate or media
partner. Real money skill gamers are a
desirable audience to have within your
portfolio for their demographic and
psychographic profiles. Skill gamers are
predominantly women, 35 years of age
and older, sharing many similarities with
recreational casino, bingo and poker
demographics. Players use cash games
as an escape from their daily lives, and
for many players, the end goal is to feel
a sense of accomplishment and success,
and not necessarily a financial gain. GSN
Games applies this insight by maintaining
a low barrier to entry, such as offering low
cost tournaments and celebrating each
win with on-screen fanfare. These players
enjoy challenging, active entertainment,
rather than forms of passive, monotonous
entertainment.
In comparison with some iGaming
segments, real money skill gamers are
social and build strong player communities.
Often, message boards and forums enable
experienced players to share tips and tricks,
or even to post videos of them winning a
game. These players also enjoy connecting
through social media networks for more
personal interactions. While some aspects
of the community are often overseen