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The Future of GameFi – Why are Firms Still Investing?
During a bloody period in the crypto industry when liquidity is drying up, the developers keep on developing, and the investors keep on investing. With all of the turmoil happening around us, it can be difficult to see positive developments happening in the space, one of which is the increasing investments in and the gradual evolution of the blockchain gaming (GameFi) industry.
After the NFT craze of 2021, many metaverse projects saw a dramatic uptick in users and revenue during that time. However, as the bear market has ensued from the start of 2022, the GameFi space has also taken a hit, with many popular Play-to-Earn games reporting record low revenues, as indicated by GameFi NFT trade volumes for Axie Infinity and others.
NFT game trade volume has dropped significantly over the past year (The Block)
Although there are some real challenges to be solved, it’s clear that VCs see beyond short-term hurdles, as is indicated by the accelerated investments in the space. In Q2 of 2022 alone, $2.5 billion was invested in GameFi, indicating a huge leap compared to 2021’s aggregate investment of $4 billion – and this year is still not over!
So then the question needs to be asked – is GameFi dead, or is there true potential for blockchains to revolutionize the gaming industry and absorb at least some of the current $220 billion (and rapidly growing) gaming market?
What is GameFi?
GameFi is a portmanteau of the terms “game” and “decentralized finance,” and it refers to a financial system in which users can earn money by participating in video games. While most play-to-earn projects place emphasis on the “gaming” aspect, the most critical aspect of GameFi at its foundation is “money”. Its beauty lies in the financial opportunities provided by a highly viewed form of entertainment – gaming.
While GameFi has shown a slight decline compared to its popularity earlier in the year, it was definitely the highlight of 2021, growing from 658 projects to over 1,100 projects in one year. The gamification of blockchain made the technology more approachable, appealing and acceptable for the public,
GameFi – Challenges Abound, But So Are Opportunities
Before we discuss the future prospects of GameFi, we have to acknowledge the challenges currently faced in the GameFi sector. For anyone involved in crypto, it won’t come as a surprise to find out that the public perception of GameFi is not great – hostile even. And a good amount of that negativity is not without merit.
Public Image Issues
The biggest challenge by far will be to convince traditional gamers of the underlying true value of NFTs. Not for their perceived and oft-reported highly speculative value, but for their digital scarcity, provable ownership, security and programmability that enables in-game assets to be used far beyond their main purposes. The 2021 NFT Cambrian explosion led to an immense crypto adoption and made a lot of people wealthy. But it also left some pretty big scars after the market cooled down; countless stories of project rug pulls by anonymous operators and celebrities, and NFT newcomers getting scammed are still circulating the news.
Mainstream gamers still need to be convinced that the web3 space can tackle the challenge of building a self-sustaining game economy. One that gives the players a chance to decide whether they want to play the game for free and for fun, or whether to take it to the next level and earn an income from it.
Free-to-Play – Adjusting Course for the Better
To draw inspiration for how to structure and monetize a game, the web3 gaming industry need not look further for its most ideal strategy than the one that’s been right in front of their eyes for more than a decade – Free-to-Play. Countless titles, such as Candy Crush, Farmville, Roblox, Pokemon GO, League of Legends and many more, have proven to the world that free-to-play games can be highly lucrative without setting up paywalls for their users, sometimes even more so than paywalled games.
The F2P mechanism flips P2E on its head – instead of letting whales hoard all of the in-game assets and generate passive income, F2P games let them bring in 80% of the revenues through Pay-to-Win (P2W), which allows players to pay for in-game advantages. These P2W features are typically low-cost small advantage boosts such as resource packs, gacha characters, healing boosters and more. But in the aggregate, these small payments compound into enormous profits for the game. It works for everyone – most players get to play the game for free, big players get to accelerate their in-game success, and the game itself generates more revenue than it knows what to do with.
And this realization is one of the reasons why more and more investments are flowing into GameFi. Though it had a rocky start, the value proposition of NFT-based games is clear – every single aspect of traditional F2P games is made simpler and safer. In addition, every in-game NFT asset can be added to a highly liquid global market of all NFT assets, offering ways to trade NFTs from different games, as well as build in utility for them in order to grant unique capabilities, access rights, invites and more. And if that’s not enough, on-chain data also shows a clear trend – gaming activity currently accounts for 52% of all Unique Active Wallets (UAW), a 232% increase from last year. The numbers speak for themselves — the opportunity offered by blockchain gaming is immense, and investors are paying attention.
The Path Forward for GameFi – Keeping It Simple
In the past years, the approach taken by many blockchain game projects has been to advertise their games to crypto-natives, typically with the express aim of offering earning opportunities for players. As a result, we’ve mostly gotten games of subpar quality that have served players mainly as profit extraction vehicles with limited long-term sustainability, especially during bear markets when hype and liquidity are low.
This may not be the end of the GameFi sector just yet, however. The newer form of web3 gaming has started to practice patience, build a great, addictive game, and quietly build all of the exciting and innovative web3 features into the backend of the game without making too much fuss about it. The industry is steering away from P2E, embracing Free-to-Play with Pay-to-Win as a sustainable means of monetization. Attracting talent from traditional gaming and finally forcing large game studios to build blockchain tech into their backends are all crucial pathways to making a blockchain-based gaming future a reality.
However, these great leaps will not happen out of thin air — a lot of capital will need to be deployed over many years. Luckily, companies such as Immutable X, the NFT-gaming optimized Ethereum L2 startup, have launched a $500 million development fund to invest in GameFi. Solana Ventures has also amassed a $100 million fund to invest in GameFi and DeFi targeting South Korea. And they’re not alone. More than $10 billion is expected to flow into GameFi this year alone.
The amount of capital invested perfectly demonstrates the potential these firms see in the upcoming, more improved version of GameFi. With this amount of capital, and GameFi’s tendency to revamp, improve and further develop its new generation of play-to-earn games, it’s a matter of when, not if, blockchain gaming will become the norm in the future.
Written by Boxmining

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Playtech Announces New Partnership with Progress Play
Playtech has announced a new long-term partnership with Progress Play, selecting Playtech as their exclusive Bingo provider for their extensive network of brands.
This collaboration marks a significant milestone as Progress Play becomes the first white label network to launch Playtech’s brand new innovative Bingo platform, which went live in December 2024.
This strategic partnership strengthens the existing relationship between Progress Play and Playtech, further cementing Playtech’s Bingo position as the B2B market leader. By joining Playtech’s network, Progress Play will benefit from the largest B2B liquidity in the market, offering a wide variety of networked rooms that are well-known and loved by Bingo players.
As Progress Play embarks on its first-ever Bingo launch, they will work closely with Playtech’s Bingo experts to tailor the product to their specific needs. Playtech’s network management team will provide ongoing support and consultation to ensure the success of the Bingo offering.
The deal also includes a variety of side games featuring content from Playtech’s Eyecon studio, renowned for their industry-leading Bingo slots. Together, the Playtech and Progress Play teams will leverage the liquidity and these games with exciting campaigns already underway.
Marat Koss, VP of Interactive Gaming at Playtech, said: “We are delighted to welcome Progress Play to the Playtech Bingo network. We have enjoyed working together for many years, and we are excited to extend this partnership to Bingo vertical. By joining Playtech’s network, Progress Play will be able to offer a best-in-class bingo experience to their vast pool of players who will benefit from a wide choice of content, attractive prizes and large variety of games. We look forward to a continuing our long and successful partnership.”
Itai Loewenstein, CEO at Progress Play, said: “We are thrilled to extend our partnership and integrate Playtech’s innovative Bingo platform into our offerings. This collaboration allows us to deliver an unparalleled gaming experience and next level entertainment to our players. We look forward to the exciting campaigns we have planned together.”
The post Playtech Announces New Partnership with Progress Play appeared first on European Gaming Industry News.
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IGT Lottery Secures EL Responsible Gambling Certification for the Sixth Consecutive Time
International Game Technology PLC announced that its Italian subsidiary, IGT Lottery, obtained the European Lotteries (EL) Responsible Gaming (RG) Certification for the sixth consecutive time. Through an agreement between European Lotteries and the World Lottery Association (WLA), IGT Lottery has also obtained WLA Responsible Gaming Certification Level 4, the highest level available.
The EL RG Certification was developed to promote the adoption of RG best practices across EL membership organizations. The EL RG standards are also designed to be complementary to the WLA RG Principles and Framework, allowing companies that meet the implementation of the EL RG Standards to also achieve Level 4 certification of the WLA Framework.
“IGT Lottery achieving responsible gaming recertification by EL for the sixth consecutive time, paired with the highest level of WLA certification, showcases our status as a true global leader in sustainability. ‘Advancing Responsibility’ is vital to our success as a lottery company, and central to our sustainability strategy. We will continue to deliver innovation while operating with the highest level of integrity to protect our people, products and processes,” said Marco Tasso, IGT COO of Italian and International Sales and Operations.
IGT Lottery’s RG programme is guided by international best practices. Consistently updated to meet evolving standards, the programme operates on three macro guidelines: the promotion of a positive approach to gaming, the prevention of underage gambling and support for players who need it.
The EL RG certification was issued following an in-depth examination of IGT Lottery’s tools, activities and processes that comprise its RG programme in Italy. IGT Lottery was found to be fully in line with the international standards established by the EL, which require specific actions to protect players by the gaming operator, reaching a score of 100% for each of ten specified areas.
The post IGT Lottery Secures EL Responsible Gambling Certification for the Sixth Consecutive Time appeared first on European Gaming Industry News.
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Meridianbet Expands B2B Operations into Nigeria, Entering a Regulated $2 Billion Betting Market
Meridianbet, a subsidiary of Golden Matrix Group, Inc., has officially launched its B2B operations in Nigeria, one of the largest and fastest-growing betting markets in Africa. The company’s entry into Nigeria further strengthens its 20-year presence in Africa, leveraging its proven track record in regulated markets to deliver world-class gaming products.
Through its newly licensed local entity, Masterlive Network Limited, Meridianbet has secured full regulatory approval from the Lagos State Lotteries and Gaming Authority (LSLGA), allowing it to operate in both sports betting and online casino verticals under License No: LSLGA/OP/OSB/MB041124.
The official launch of Meridianbet.ng marks a strategic expansion into a market worth over $2 billion, according to the research of Orange Business Intelligence Technology, with over 60 million Nigerians actively participate in betting, contributing to one of the fastest-growing industries on the continent.
Zoran Milosevic, CEO of Meridianbet, commented: “Our expansion into Nigeria marks a significant step in our long-term strategy to deepen our presence in Africa’s most dynamic gaming markets. With a highly engaged player base and strong industry growth, Nigeria presents a major opportunity for our B2B model. We are committed to bringing our cutting-edge technology, AI-powered betting solutions, and localized expertise to drive long-term success for our partners in the region.”
FY 2024 Revenue Growth & Investor Outlook
Golden Matrix Group has provided a preliminary full-year 2024 revenue estimate of $150 million, reflecting the company’s continued growth trajectory. The Group expects to release its audited FY 2024 financial results in the coming days, offering investors a comprehensive performance overview. The Nigerian market represents a strategic opportunity for future revenue expansion, aligning with GMGI’s global strategy to strengthen its presence in high-growth gaming markets.
Key Market Potential & Strategic Expansion
According to the Orange Business Intelligence Technology (ORBIT), Nigeria’s betting industry surpassed $2 billion back in 2020, with projections indicating up to $4.7 billion in annual revenue potential over the next decade. Football remains the primary driver of market growth, with a vast customer base engaging both online and offline. Meridianbet’s B2B model will provide advanced technology solutions, gaming content, and platform services to local operators, offering a scalable and highly adaptable system tailored to the Nigerian market.
A Strategic Milestone in Meridianbet’s African Growth
With operations in 18 markets across Europe, Africa, and Latin America, Meridianbet has built a reputation as a leading technology provider and betting operator. The company’s expansion into Nigeria follows its long-standing success in established African markets, where it has been a dominant player for over two decades.
The soft launch of Meridianbet.ng is already delivering positive early results, with strong partner satisfaction and excellent customer feedback.
AI-Powered Innovation & Market Expansion
As part of this rollout, Meridianbet is introducing its proprietary AI Sports Betting Recommender and AI Casino Recommender, delivering personalized betting experiences based on real-time data, player behavior, and predictive analytics. These innovations, already proving successful in multiple markets, will enhance customer engagement, retention, and overall user satisfaction in Nigeria’s rapidly evolving gaming landscape.
The post Meridianbet Expands B2B Operations into Nigeria, Entering a Regulated $2 Billion Betting Market appeared first on European Gaming Industry News.
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