Trust — The Holy Grail of Real Money Gaming!

Having immersed myself in the world of poker for nearly a decade, I’ve had the privilege of connecting with both recreational enthusiasts and seasoned professionals.

A common sentiment among many skilled players is their reluctance to transition from live games to online platforms. While the hefty rake or commission is often cited as a deterrent, it’s not the primary concern I’ve heard echoed among my peers.

The underlying issue? Trust — or rather, the lack thereof — in centralized gaming platforms where the inner workings of algorithms remain shrouded in mystery. Many players question the authenticity of randomness in these systems, suspecting that the algorithms may be subtly engineered to produce “hot boards” that increase player engagement and subsequently, rake generation.

While the algorithm itself may not favour any individual player, the frequency of these favourable scenarios could drive up participation, thus boosting rake revenue per hour.

For entrepreneurs venturing into the realm of Real Money Gaming (RMG), here are some key insights:

1) The imposition of hefty taxes on deposits in markets like India (28%) poses a significant challenge, potentially stifling industry growth if passed on to users. RMG companies often absorb this cost, impacting their bottom line and constraining free cash flows.

2) Reduced free cash flow translates to tighter budgets for customer acquisition and incentives, which historically have been pivotal in retaining user interest.

3)In the battle for market dominance, it’s not merely about acquiring users at the lowest cost, but rather, fostering superior retention metrics and minimizing churn. RMG platforms must ensure that the revenue generated from each user offsets acquisition costs and GST liabilities.

So, how does blockchain technology intersect with the issue of trust in gaming platforms?

By leveraging blockchain, developers can create games that operate on a meritocratic basis, devoid of manipulative tactics aimed at artificially sustaining user engagement.

While widespread adoption of blockchain-based real money games may still be on the horizon, obstacles such as educational barriers, security concerns, and regulatory complexities persist. Nonetheless, the inherent trustlessness of blockchain technology, coupled with the gradual evolution towards more user-friendly implementations, heralds a promising future for blockchain-backed RMG on a global scale

Feel free to reach out if you are building anything in Gaming!