The challenges of keeping skill gaming compliant

Games of skill have long been heralded as the saviour of the casino vertical among millennials and younger demographics who may not engage with more traditional products. The logic goes that a generation raised on consoles and mobile games values greater control, and they aren’t getting enough of it when invited to simply press ‘spin’ on the latest slot. In recent years, we have started to see an increasing number of skill games appearing on both the casino floor and in online lobbies. And alongside them, a growing cohort of suppliers have begun to build new titles which incorporate skill-based elements; many consider this a key growth segment for their businesses. Conversations Maxima Compliance has had with both operators and suppliers suggest these titles are resonating more strongly with their target audience, and the trend is set to continue.

What is a game of skill?

In its most basic sense, a skill-based game is a money game where the skill of the player – whether that be strategic or physical – has a direct impact on the outcome. But this broad category is ill-equipped to account for the full spectrum of games within this space. Instead, it is worth distinguishing between exactly how much of the outcome of a game is impacted by the skill component. This leaves us with three sub-categories: games of chance, where the outcome involves no player influence, as with a classic slot machine; games of chance with a skill component, where a random event is heavily responsible for the final outcome, but skilled players can earn a higher RTP, such as blackjack; and pure skill games, where the final outcome is fully determined by the player’s skill.

Getting better categorisation

Finding a way to properly categorise games of skill can significantly ease your compliance obligations – depending upon jurisdiction. Regulations and requirements differ considerably between markets. While certain jurisdictions have adapted existing frameworks to account for games of skills, others have left it to providers to interpret existing requirements. The primary challenge here is to determine the precise level of skill and exactly where this places a game within a jurisdictional framework. For instance, the UK Gambling Commission makes a clear distinction between games of chance and games of ‘skill with prizes’ (SWPs). The UKGC permits SWPs to be offered without the need for applying for a licence and without the need to implement remote technical standards for the product. This is clearly a major upside for providers, not to mention operators looking to bring new content to market quickly. But it is probably fair to say that it is an opportunity only a handful of companies are currently capitalising upon. Depending on your jurisdiction, proper categorisation of skill games can lead to simple, faster and cheaper certifications, as well as the possibility to offer games without even needing to apply for a licence and obtain certification. For content creators looking to engage customers in increasingly competitive regulated markets, this segment can be an important differentiator.

Walking that fine line

The challenge for those looking to use skill games as a way to more easily navigate licensing and certification requirements is treading the fine line between games of chance that include a skill component, and games of pure skill. Games of chance which comprise elements of skill can still be considered a skill game depending on the jurisdiction and the way players interact with the game. One such example could be a multiplayer version of a traditional game of chance, where a tournament mode means that the outcome is not related to the random element of the game itself, but rather a player’s performance against others in the tournament based on their skill and strategy. This sort of creative thinking can open new doors, particularly in markets where there is a significantly lighter compliance burden on games of skill. These games often have a strong social element as well, so can be great for reaching segments which may not be interested in a standard casino offering. We see a major opportunity for providers in re-tooling existing products in such a way as to qualify as a game of skill. This will not only open new markets for the product, but also new audiences who engage with creative products which stand apart from regular slots or table games. As ever, an innovative approach to compliance is about far more than meeting requirements.   Author: Francesco Bianchi, chief operating officer, Maxima Compliance Bio :Francesco Bianchi is COO of Maxima Compliance. He has more than a decade of experience in the compliance field, having served as director of igaming operations and technical compliance at BMM Testlabs for the EURSAM region, as well as in senior compliance positions at the likes of Betfair and GLI.