At SCCG we continue to educate our client partners by discussing trends focused on betting, gaming, content, and media. This segment addresses Google Play embracing Real Money Gaming or “RMG”. Coverage includes; 1) Detail of Google’s Policy Change 2) Impact of the Policy Change
Google Allowing More Real-Money Games
Google Play, as a platform, is expanding its support for RMG apps in response to strong demand. In 2021, the platform began onboarding a wider range of RMG apps in markets with existing licensing frameworks. Following successful pilot programs, Google Play will extend support to more RMG operators and game types, including those not covered by existing licensing frameworks. The expanded support is set to launch in June for developers in India, Mexico, and Brazil, with plans for further expansion to additional countries.
In addition to the policy update, Google Play will evolve its service fee model for RMG to reflect the value it provides and sustain the Android and Play ecosystems. Collaboration with developers is ongoing to ensure that the new approach aligns with the unique economics and various earning models of the RMG industry. More details on the new policy and expansion plans will be shared in the coming months.
Impact of the Policy Change
Expanded Selection
Google Play Store will include games that are not currently covered by an existing licensing framework. But games will need to adhere to Google’s existing developer policies, including age-gating to prevent underage gaming as well as geo-gating that ensures the games are only being played in areas where they’re legal. The move aims to provide new business opportunities for developers globally while maintaining a focus on user safety. Existing developer policies related to user safety, such as age-gating and geo-gating, will remain in place and be strengthened.
Test-Pilots
For developers participating in the Google Play Pilot Program for distributing Daily Fantasy Sports (DFS) and Rummy apps in India and DFS in Mexico, a grace period is provided until June 30, 2024. After this date, developers can distribute RMG apps in compliance with local laws and the updated policy.
Unknown Fee Structure
App Stores and Websites for Real Money Gaming have not taken a revenue share as they would with other popular games across the app store. Real money gaming apps often have complex regulatory considerations, and app stores are cautious about revenue-sharing arrangements to ensure compliance with legal and regulatory requirements. Fees to customers from different online casinos, gaming websites, or platforms may have their own fee structures placed on the customer. Common fees in real money gaming can include transaction fees for deposits and withdrawals, and fees associated with specific payment methods.
Very likely, if there is one Appstore mandating a fee it will likely carry to other App Stores. Developers/operators will likely make justifications to invest resources to bring their apps where they are accessible. Factors I anticipate operators/developers will be evaluating would be: 1) Fee Structure by store 2) Cost to Advertise and Market 3) Active Users within App Store Ecosystem 4) Regulations by Jurisdiction on Real-Money Games 5) Device/Appstore policies around each vertical of RMG.
Conclusion
In the world of App Stores, when a new revenue generating tactic is applied like fees on RMG, this often leads to a domino effect, with each platform trying to match or surpass the advancements made by others to stay competitive in the market. As new fees are incurred to developers, we can anticipate 1)a negative impact to a customer’s chances of winning 2) Reduced spend in advertising and marketing.
RMG Apps (specifically skill-based and other cash games) are growing in emerging markets where there is a growing interest in online gaming and limited regulatory frameworks. When developers incur less expense, we expect more budget to be applied through various forms of UA campaigns and investment in the product.
