The United Kingdom’s technological ecosystem is brimming with innovation, making it ideally placed to capitalise on the opportunities presented by the global gaming industry.
The associated iGaming industry also offers UK technology the opportunity to flex their muscles, particularly in jurisdictions currently undergoing regulatory changes.
Read on as we look at three exciting opportunities for the UK tech sector in gaming, starting with a major development on the other side of the world.
Capitalising on Regulatory Changes in New Zealand
The New Zealand (NZ) government announced last that it plans to release the brakes on online gambling, which opens the door for UK tech firms to muscle in on the action.
Companies in the UK have experience of navigating regulatory issues in established iGaming jurisdictions and lend their expertise to the Kiwis.
The UK’s Online Safety Act (OSA) is a blueprint. UK tech companies have developed their capability in compliance, age verification and consumer protection.
This ability puts them in a position to support New Zealand’s budding iGaming market as they share many of the same challenges.
There are several opportunities for UK-based tech and fintech firms to deliver compliance solutions to online casinos, banking on their experience from dealing with the OSA and other similar acts.
British firms can offer white-label services in payment processing, detecting fraud and responsible gaming. This cross-border partnership can also encourage the exchange of knowledge and innovation.
The top 10 online casinos in NZ are the perfect place to start. Working with these established operators will create a fertile ground for the iGaming sector to flourish.
The ethos the UK and New Zealand share around regulations paves the way for a promising collaboration regarding international standards, and both parties can benefit.
Unlocking the Potential of In-Gaming Digital Assets and Payments
Possession of in-game assets and payment systems has been the talk of the gaming industry for some time now, and there are opportunities to explore.
Distributed ledger technology (DLT), cryptocurrencies and non-fungible tokens (NFTs) are changing how players keep, buy and sell their game assets.
Leveraging these technologies, users can play to earn, play to own and trade assets in this virtual economy, creating a whole new market for digital goods.
A recent report from JP Morgan showed just how important these in-app purchases have become. The study forecasted revenue will reach a whopping $271 billion by 2025 and increase by another $14bn by 2026.
Embedding digital payment options into different games improves the experience for the players and encourages loyalty while helping publishers and developers with monetisation.
UK game studios can also leverage data insights from how players spend to curate a better experience and attract a wider audience.
However, they must tread carefully with the uncertainty around regulations. The volatility and intense scrutiny of digital assets mean developers must comply with every stipulated guideline to avoid heavy penalties ranging from fines to licence withdrawal.
With their experience in regulated financial markets, UK gaming companies can blaze the trail in digital asset management, cybersecurity and consumer protection.
Developers must invest in frictionless payment solutions that include real-time transactions and peer-to-peer exchanges to capitalise on this opportunity.
They must develop well-thought-out frameworks that fall in line with the UK’s digital asset regulations and ensure they keep their customer trust.
One way to do this would be to establish partnerships with fintech firms to improve the payment systems. They also need to focus on expanding their market reach.
Harnessing AI and IP Strategies for Growth
Artificial intelligence (AI) and intellectual property (IP) management are major forces behind the success of the UK tech industry.
Generative AI has many incredible applications that can change game development forever. They can enable faster workflows, improve user experiences and finetune adaptive gameplay.
For example, AI can help generate non-player characters that respond to player behaviour, giving a more immersive experience.
However, bringing AI into the picture also introduces legal and ethical concerns. Intriguingly, UK tech firms lead the way in IP laws and can give developers the playbook for tackling these challenges and complying with AI laws such as the European Union’s AI Act.
Developers need thorough clearance processes for AI content to avoid potential damage. They must also consider how to protect customers and their data.
UK gaming companies are competing with the best in the world and must update their IP standards to safeguard valuable assets. They need proactive IP policies that prevent loss and damage in these markets for digital goods. Tech firms will be invaluable to those efforts.
Gaming companies must consider the implications of using AI in the workspace and need to be transparent about it in their operations.
To stay ahead of the curve, UK gaming firms must invest in AI governance frameworks developed by tech companies that meet global standards.
