What is a real money game, and how does it work?

Real-money games are exactly what the name suggests — they’re games where people can win real money, and not just the currency they can spend inside said games. There are several types of such games — some resemble casino experience, others are competitive video games. Certain popular game franchises hold skill-based esports tournaments with real money as prizes — those too are considered real-money games.

Is it legal to develop a real money gaming app?

The answer to this question depends in full on the country where you are planning to launch your game. Some countries, like China, completely prohibit anything that comes close to casino-like games, so to launch real-money games on this market, you need to be extremely careful and thorough. On the other hand, there are countries like India, where they’re regulated but generally more relaxed towards this type of games. Finally, there are countries where iGaming is unregulated — like Mexico or Peru. Some countries allow skill-based games with real money as a prize, but forbid chance-based games. So esports and, say, Poker might be allowed, but not slots. Legislations also change regularly. You’ll need to research your intended location to know for sure.

How can I monetize a skill-based real-money game?

Ads and subscriptions are the ultimate monetization model suitable for any games, including skill-based games with real money involved. If you’re holding tournaments, you can ask for an entrance fee or a % of the winning pool.

Developing Real Money Games: From Skill-Based to Luck-Based Mechanics

This article covers the essential points on how to make real money games, their different types, and the specific challenges that may arise.

Developing Real Money Games: From Skill-Based to Luck-Based Mechanics

Highlights:

Real-money games can be chance-based or skill-based, and the type will affect the development;
There are more and more real money games with crypto integration every year;
Ethical real-money game development is possible and not as daunting as it might seem.

In recent years, the gaming landscape has seen a dramatic shift with the emergence of real-money games — video games in which players can stake actual cash and potentially win real-world payouts.

Unlike traditional video games that reward players with in-game currency or cosmetic items, real-money games blend entertainment with tangible financial prizes, blurring the lines between play and profit. These games have surged in popularity across mobile and online platforms, driven by both casual users seeking a thrill and competitive players chasing high-stakes rewards.

This article explores the topic of real-money game development, examining the technological and regulatory factors fueling their growth. We’ll dive into the psychology behind their appeal, highlight the key differences between skill and chance models, and consider the ethical and legal debates surrounding their rise.

In our time as a game development company, Mind Studios Games has built video games in numerous genres, both for external clients and as our own products. One of the clients we used to work with was a platform for skill-based games built on blockchain and web3 technology, but with options to pay and earn in both crypto and fiat, which is where we’ve acquired a certain amount of knowledge about the topic.

Mind Studios' experience in Real Money Games

We hope this information will be of use to our readers, and if you’re on the lookout for a game development partner to help you bring to life an idea of a real-money game — don’t hesitate to schedule a consultation with our team. Maybe we’re exactly what you were looking for all along 😎

Your job: To think about your game. Our job: To make it reality.

What are real money games?

Real-money games fall into two main categories: skill-based and chance-based, with hybrid models emerging between the two.

skill-based and chance-based real money games

Skill-based games reward players based on their ability, reaction time, or strategic thinking. Examples of skill-based games include a lot of genres, from simple competitive trivia, to mid-core card games, to complex fantasy sports, shooters, and Battle Royale.
Chance-based games, in contrast, rely largely on luck, often resembling traditional casino gambling experiences. Here, conjure in mind slots or roulette games.

Read more: Card Game Development: A Guide

These two different types of games attract different types of players and, therefore, use different incentives to attract and keep those players.

Motivators in skill-based games often revolve around the players’ pride in mastery and competitive rankings. The opportunity to earn real money through repeatable performance is a bonus brought in by real-money stakes, but these games also exist in the more relaxed gaming niche with just the in-game prizes.

On the other hand, the appeal of chance-based games (also called luck-based games) is in the thrill of unpredictability and the potential for large, instant payouts. Players have little to no control over outcomes, but the excitement of chance and the possibility of hitting a jackpot keep engagement high.

As the market for real-money games expands, owners of these games are continually experimenting with new engagement techniques, as well as with a variety of ways they can be monetized. Of course, when you provide players with a platform where they can make real profits, you as the owner also need to have a cut, so to speak. So what are the options?

Monetization of real-money games

Same as with player incentives, some monetization models are only for one type of game and not the other. However, there’s also some common ground, opportunities for you to make money off your platform regardless of what type of games you offer. Here’s a short comparison table to grasp the idea.

Type of game	Monetization options
Skill-based games	Entry fees for competitive skill-based games, where platforms take a percentage from each contest or match pool. In-game purchases. Since skill-based games are, well, skill-based, allowing players to buy enhancements is considered cheating. However, you can sell customization items.
Chance-based games	House edge or fixed odds: Chance-based game platforms typically design the game so that over time, the house retains a statistical advantage. In-game purchases in chance-based games may include power-ups and extra chances alongside game interface cosmetics.
Any real-money games	Advertising and sponsorships are useful for all types of games, especially where real money is involved. And the range is fairly wide — from banner ads and video ads between games to branded in-game assets or prizes from partners to winners in competitions. Subscriptions are likewise a good choice for either game type. They can offer game perks like better prizes, access to higher-stake games, extra features like game recordings, etc.

Now, since we’re talking about games that can be (and are, in some countries) considered gambling platforms, there are, of course, legal and ethical considerations to be considered before you embark on the development journey. And there are quite a few.

Legal considerations for real-money game development

From a developer’s standpoint, without knowing the specifics of your game idea and your intended market, we can only offer general advice. Here are our top-5 recommendations:

Legal considerations for real-money game development

Use provably fair algorithms, especially for chance-based games.
Implement age verification to prevent underage access.
Adhere to the KYC (Know Your Customer) and AML protocols to monitor for fraudulent activity.
Offer transparent payout structures and clearly state the odds for winning.
Provide responsible gaming tools, like self-exclusion options and spending limits.

Everything else will need to be decided on a case-by-case basis, and we strongly recommend our clients to seek legal counsel from specialists experienced in the niche of real-money games — to prepare all the documentation before you launch your game. Here’s why 👇🏻

Without proper licensing, your platform risks legal action and blacklisting on the official level, and loss of consumer trust when it comes to player retention. An official license signifies that your platform meets specific standards for fairness, transparency, anti-money laundering (AML), and responsible gaming.

Depending on the country your company will operate in, the regulations will differ, and sometimes drastically. For example, in China, real-money gambling is completely illegal, and the enforcement is very aggressive. Even social casino games can be investigated if they simulate gambling behavior too closely. India, on the other hand, differentiates between game types: skill-based games are largely permitted, but games of chance are often banned. In the United States, it is up to each state to set the rules.

While researching how to make real-money games, you will undoubtedly have to include local regulations in the areas you’re targeting. It’s absolutely vital to carefully examine all rules, unless you want legal actions to knock on your door at some point.

Real-money games and ethics

The legal regulations we’ve talked about in a previous section are justified for reasons. Real-money games operate on principles similar to gambling establishments, and thus pose a similar threat from an ethical standpoint.

After all, real-money games, especially chance-based ones, can induce addictive behavior, particularly among minors and financially at-risk individuals.

Some things that your game developers can do to mitigate the risks include:

Implementing features like spending caps, session time warnings, and links to support services to minimize addiction risks.
Avoiding psychologically manipulative tactics (e.g., near misses, flashy visuals) to keep players engaged and spending.
Setting up strict age gating and avoiding marketing to younger audiences.
Ensuring strong cybersecurity and transparency around data use, to avoid identity data exposure.

This is the bare minimum we recommend to our clients, even when they’re operating in areas with more lax requirements for real-money and casino games. Depending on the specifics of the game, we will offer additional research and advice.

Key features of a real money game

The potential profitability of real-money games is huge, for players and especially for game owners. But to thrive in the competitive and heavily regulated sector of real-money games, developers must go beyond basic gameplay.

A successful real-money gaming platform requires a robust combination of technical, regulatory, and user-focused features to ensure legal compliance and also build trust, enhance user experience, and promote long-term engagement.

Here are 10 key features we consider essential for a real-money game — and why they matter:

10 FEATURES FOR A REAL-MONEY GAME
Secure payment integration	What it is: Seamless and encrypted systems* for deposits, withdrawals, and in-game transactions using trusted payment gateways (e.g., credit cards, e-wallets, crypto). Why it matters: Handling real money demands airtight security and ease of use. Slow, confusing, or unreliable payment systems will drive users away and invite regulatory audits. *Note: Some platforms that allow real-money games also handle payments — for example, the App Store via in-app purchases.
Fairness and transparency mechanisms	What it is: Use of provably fair algorithms (for chance-based games), transparent scoring systems, and visible win/loss odds. Why it matters: Players need to trust the platform. Whether they're spinning a digital slot or competing in a trivia match, fairness must be verifiable to avoid legal issues and player churn.
Identity verification and KYC compliance	What it is: Tools to verify a player’s identity, age, and location, typically through government-issued ID uploads, facial recognition, or geolocation. Why it matters: These are legal requirements in most jurisdictions. They help prevent fraud, money laundering, and underage gambling.
Responsible gaming tools	What it is: Features like spending and deposit limits, self-exclusion options, time-out sessions, and links to addiction support. Why it matters: These tools reduce possible harm and improve the platform’s reputation. They are often mandated by law and help ensure ethical gameplay environments.
User-friendly interface and onboarding	What it is: Intuitive design, simple tutorials, and clear labeling of real-money elements (e.g., “Play for $5”). Why it matters: Real-money gaming often attracts casual or first-time players. A confusing or overwhelming UI leads to drop-off and lost revenue.
Real-time matchmaking and fair pairing for skill-based games	What it is: Algorithms that match players of similar skill levels in real-time for competitive balance. Why it matters: Prevents experienced players from farming newcomers, which leads to unfair gameplay and user attrition.
Compliance with local laws and geo-blocking	What it is: Automatic detection of a user’s location to allow or restrict access based on regional laws. Why it matters: Ensures the game is only available where legally permitted, protecting both the platform and its users from regulatory violations.
Analytics and anti-fraud systems	What it is: Back-end tools to detect cheating, collusion, bot usage, and suspicious payment patterns. Why it matters: Fraud damages player trust and can incur legal penalties. Real-time monitoring helps keep the ecosystem clean and fair.
Engagement and reward systems	What it is: Tournaments, leaderboards, referral bonuses, loyalty programs, or daily challenges with cash prizes. Why it matters: These features drive repeat play, increase user lifetime value, and make the game more than just a one-off gamble.
Multi-platform compatibility	What it is: Support for mobile, desktop, and web platforms, often with cross-platform progression. Why it matters: Players these days expect flexibility in how and where they play. Broad accessibility increases the reach and revenue potential of the game.

Payment integration and currency handling

Since your game by definition deals with real money, you’ll need to integrate the functionality for money exchange, obviously. The choice of providers will depend on several factors — like regulations in your country of operations, for example, or local legislation, or your needs in terms of functionality.

In this section, we will give several possible examples, but when you get to your real-money game development, your team will need to do a thorough research to provide the best experience to players.

Looking for versatile and cost-effective mobile game development?

The main parameter in this type of games is, of course, the currency support. What we recommend to our clients is to implement multi-currency support and, if applicable, cryptocurrency support.

Why?

Well, even if your game operates in a single country, including foreigners and tourists is generally a good idea. Some people from countries where casinos are banned even travel to visit them, right? This could happen for video games too, especially if you hold tournaments for skill-based games. As for crypto, it is simply very popular today among people interested in real-money games.

Now, what to take into account in regarded to currency?

Multi-currency support	Crypto support
Localization. Games must detect or allow users to select their local currency (e.g., USD, EUR). Dynamic pricing. Convert item prices, entry fees, and payouts in real time using current exchange rates. FX handling. Integrate with foreign exchange APIs (e.g., XE, Open Exchange Rates) or use payment gateways that handle conversions automatically. Wallet architecture. Implement a multi-currency wallet that keeps balances in original currency or in a base currency with dynamic conversion.	Accepted cryptocurrencies. Common options include Bitcoin (BTC), Ethereum (ETH), USDT. But there are more to choose from. Wallet integration. Players need in-app or linked crypto wallets. Use libraries like Web3.js, WalletConnect, or third-party APIs like Coinbase Commerce or BitPay. On-ramping. Integration with services like MoonPay, Ramp, or Transak allows users to buy crypto with fiat directly within the game. Volatility handling. For stable accounting, crypto amounts should be converted to a fiat-equivalent at the transaction time.

Multi-currency support

Crypto support

Localization. Games must detect or allow users to select their local currency (e.g., USD, EUR).
Dynamic pricing. Convert item prices, entry fees, and payouts in real time using current exchange rates.
FX handling. Integrate with foreign exchange APIs (e.g., XE, Open Exchange Rates) or use payment gateways that handle conversions automatically.
Wallet architecture. Implement a multi-currency wallet that keeps balances in original currency or in a base currency with dynamic conversion.

Accepted cryptocurrencies. Common options include Bitcoin (BTC), Ethereum (ETH), USDT. But there are more to choose from.
Wallet integration. Players need in-app or linked crypto wallets. Use libraries like Web3.js, WalletConnect, or third-party APIs like Coinbase Commerce or BitPay.
On-ramping. Integration with services like MoonPay, Ramp, or Transak allows users to buy crypto with fiat directly within the game.
Volatility handling. For stable accounting, crypto amounts should be converted to a fiat-equivalent at the transaction time.

For real-money games — especially those involving wagering, in-app purchases, or player-to-player transactions — payment integration must balance global reach, real-time processing, regulatory compliance, and fraud prevention. We have a brief overview of the most popular and reliable payment options, but you’ll need to consider your choice based on specifics of your game.

Standard payment systems

By standard payment systems, we mean the traditional ways to pay these days — card processors, payment gateways, bank transfers, and mobile payments. Here are some suggestions:

Card processors and gateways	Stripe. Global reach, great developer tools, supports payouts and multiple currencies. Some limitations on gambling/real-money apps depending on jurisdiction. PayPal. High trust factor, wide reach, but often avoids high-risk industries like gambling. Adyen. Excellent for global markets, used by major platforms (e.g., eBay, Uber), supports cards, wallets, and local methods. Braintree (by PayPal). Flexible, developer-friendly, supports cards, PayPal, and Venmo. Worldpay. Popular in iGaming; supports recurring payments, card processing, and alternative methods. Skrill / Neteller (Paysafe Group). Heavily used in gaming, especially for betting and casino-style apps.
Bank transfers	SEPA. Standard for EU bank transfers. ACH. Used for direct debit transfers in the US. Regional services like iDEAL (Netherlands), Sofort (Germany), UPI (India), Interac (Canada), etc.
Mobile wallets	Apple Pay and Google Pay offer seamless mobile transactions. Limited for real-money gambling unless tightly controlled by store policy. Samsung Pay is less common but viable in select markets.

It’s important to keep in mind that to integrate most payment options that deal with real money, you’ll need to build your game’s backend from scratch.

Cryptocurrency payment providers

Crypto payments are gaining momentum in gaming for their speed, lower fees, and privacy. And while regulatory challenges are significant depending on the country, a number of reputable services have already emerged:

Coinbase Commerce is known for easy integration, and it supports BTC, ETH, USDC, etc. However, it has no KYC for payers.
BitPay. One of the most established crypto payment gateways; supports settlement in fiat or crypto.
NOWPayments is a noncustodial service, supports many currencies, ideal for anonymous or lightweight integration.
CoinPayments is good for multi-coin support, and it has integrated shopping cart plugins.
MoonPay is a service focused on fiat-to-crypto and crypto-to-fiat with KYC.

There’s also an option for direct crypto wallet integrations in real-money game development, with tools like Metamask or WalletConnect. The former is common for Web3 and NFT games, and the latter is a cross-platform wallet connection standard.

Real-time payout and instant settlement systems

Fast payouts are increasingly expected by players, especially in competitive or skill-based games. Here are some options for that.

Specialized platforms	Open banking / RTP networks
Payoneer: Global payouts for freelancers, content creators, and gamers. Wise: Fast international bank transfers at low fees. Revolut: Popular in Europe and UK for real-time transfers, especially in fintech-based apps. TangoPay: Supports real-time payouts to bank accounts. MuchBetter: Mobile wallet aimed specifically at iGaming and betting.	The Clearing House — an RTP network that enables instant bank payments in the US. Faster Payments (UK) — Near-instant transfers between banks. SEPA Instant (EU) — Real-time euro payments across EU member countries.

Gaming payment and monetization platforms

Game commerce platforms like Xsolla are built with the needs of game developers in mind, offering not only payment acceptance, but also ready-made solutions for in-game purchases, subscriptions, marketplaces, revenue sharing, and support for tax requirements.

Unlike Stripe, which is a general payment system, Xsolla is designed specifically for the gaming industry: it allows developers to easily integrate global payment methods, in-game purchases, subscriptions, and launch marketplaces or reward systems. For real money games like skill-based PvP, this can significantly reduce the time and cost of developing back office solutions.

However, it is important to consider legal restrictions. For example, Xsolla doesn’t work with classic gambling games, but can support skill-based models with monetary rewards.

Real-world examples of successful real-money games

Real-world examples of successful real-money games: Skillz & Call of Duty: Warzone

Skillz

Skillz is a mobile gaming platform that enables players to compete in skill-based games for real prizes and cash rewards. Since its launch in 2012, it has grown into a global leader in mobile esports, hosting billions of tournaments across various game genres.

The platform’s proprietary algorithms match players based on skill level and ensure that all tournaments involve real players, not bots. This adds to credibility among players and boosts the platform’s reputation.

Skillz also has a $75 million Developer Accelerator Program. This initiative provides financial resources, operational support, and access to Skillz's proprietary tools, helping developers bring new skill-based games to market.

Call of Duty: Warzone

The game itself is a top-tier, free-to-play battle royale with a massive player base. So it’s not a surprise that there are official Call of Duty: Warzone tournaments where skilled players compete to win sizable monetary prizes. They are held at platforms like Checkmate Gaming and Players' Lounge.

Besides the cash prize, what often attracts players is the skill-based nature of the tournaments, as well as exposure and an opportunity to snatch a sponsorship deal for game streamers.

Stake dot com

Real-world examples of successful real-money games: Stake dot com & FanDuel

A platform with a wide range of offerings: slots, live dealer games, and sports betting — all in one place. Endorsements from high-profile streamers and even celebrities like Drake have helped the platform grow virally.

But the key features of this platform are the transparent, fast transaction system that makes it easy to deposit and withdraw funds, and it’s acceptance of crypto, which makes it a favorite of a younger generation of gamers aiming for games with cash prizes.

FanDuel

FanDuel popularized the concept of short-term fantasy leagues where users can win real money based on athlete performance in real games. It is especially notable for combining sports fandom, real-time data, and financial incentives, creating an addictive and highly engaging experience for millions of users. Plus, its easy onboarding, sleek app design, and intuitive game structure help attract casual users.

The platform operates legally in many U.S. states with proper licenses, which adds a layer of legitimacy and safety. As legalization progressed across the U.S., FanDuel expanded into sports betting, capturing a broader gambling audience. Regular promotions, referral bonuses, and deposit matches work as good incentives and keep players coming back.

Conclusion

Real-money game development offers a unique opportunity to tap into a rapidly growing and highly engaging market. With the right concept and strategic execution, these games can be both profitable and sustainable.

But in a landscape where actual money is at stake for players, reputation and trust are everything. That’s why choosing the right development partner can be the difference between a short-lived app and a lasting, respected brand.

By partnering with an experienced game development team, game owners can ensure their vision is not only realized, but is also built on ethical foundations. Seasoned developers bring the technical expertise and industry insight needed to navigate legal frameworks, implement responsible gaming practices, and create fair, transparent experiences for players.

If you’re looking for such a partner, don’t hesitate to reach out to Mind Studios Games. We have been on the game development market for a while, and among other projects, we’ve also worked with e-sports apps and blockchain-based platforms where players could earn real money. We can navigate the industry and offer not just quality game development, but insights and consulting services as well.

Contact us via the form, or get in touch with our Head of Gamedev Ivan Dyshuk on LinkedIn. Let’s work together to build successful games.