The Skillz service from the startup of the same name will allow users to compete with each other in mobile games for real money. Recently, its beta version for Android applications was released in the USA. The first results showed a threefold increase in revenue and session length.
The project works as follows: developers integrate Skillz into their project as a multiplayer component. Then the players who downloaded the app activate their own Skillz account, common to all games that support it. Then they can compete in projects with other players for real money, having previously entered their credit card details. The minimum entry threshold for a paid session is $0.25. In case of winning, the user receives the bets of all participants of the tournament.
According to the first results, the retention rate in games that included Skillz support increased, on average, from 4% to 18%. Forbes also claims that the daily revenue of one of the games jumped three times, while the other, in turn, tripled the length of sessions.
The guys from Skillz insist that their service has nothing to do with gambling, since their competitions are built on skills, not luck. In addition, according to the information from the official website, they do not receive anything from the tournaments. Although in an interview with TheNextWeb, Skillz executive director Andrew Paradise admitted that the startup takes 10% of the entrance fees (however, it depends on the monetization of the game). Half of this amount goes to developers. Plus, no one canceled advertising and IAP.
The only major problem facing the company today is the ban on cash winnings in 14 US states. The company bypassed it, closing access to the residents of these regions to tournaments for money. In the remaining 36 states, the service is fully operational. And thus, Paradise claims, the platform can potentially reach 75% of all US residents. Outside of America, tournaments for money are also not supported yet.
At the moment, Skillz is integrated into 10 games (there are no popular ones among them):
- GnarBike Trials
- Bubble Explode
- Big Sport Fishing 3D Lite
- SushiChop
- Mini Golf Star: Putt Putt Game
- International Boxing Champions
- Bubble Shooter
- Apache Strike: Multiplayer Fun
- King of Defense
- 3D Cave Runner