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- Wamba Technologies has officially patented the process of integrating a wagering system into skill based video games (essentially esports for games such as golf, tennis, shooters, racing games, etc.).
In lay terms, as an example, they could build a fully automated competition experience where there is an option to pay an entry fee into various tournaments offered directly from the video game menu where players win real money. By building such a software platform, the idea is that tournament events could be offered 24 hours a day, 7 days a week, 365 days a year.
In simpler practical terms, they have patented the primary method required to create "in-game wagering" capabilities for skill-based video games.
"Presently, video game tournaments are typically held outside of the game being played." Said Gary Denham , CEO of Wamba Technologies. "The companies that do provide online competitive gameplay where players can win monetary prizes are typically 3rd party vendors who are not actually connected digitally to the game itself. The wagering system and the game operate independently and without communication between each other. This results in the 3rd party vendor holding players' tournament entry fees while the players go play their game separately. Then, once the winners have won, it is up to the players to leave the game, go back to the 3rd party vendor, and just "be honest". Nothing is automated. Considering that Warzone recently banned more than 100,000 players in a single week for cheating, it's no wonder that online esport events based on the 'Honor System' have typically not generated big revenues."
Denham continued "With our patent, we are building a system that will offer a multitude of events, 24 hours a day, 7 days a week, 360 days per year. Through our patent, we hold the rights to this type of tournament system development."
The only other comparable company to Wamba (meaning that the esports feature is built into the actual games themselves) presently is Skillz (SKLZ) who went public in 2020. With a different patent, Skillz offers in-game competition for real money with basic mobile game titles such as "Solitaire". Despite working with small games and under 4M players, Skillz generated more than 25% of the total global online esports revenue in 2021. Considering there are an estimated 475M people who participate in esports around the world, the fact that Skillz represents less than 1% of the esports player population but more than 25% of the online esports revenue is a testament to the value of adding this feature to a game.
Presently, if a game is generating north of $10 per player per year from ad sales and in-app purchasing, they are doing phenomenally well. Skillz has decimated that standard and is reportedly seeing player values as high as $70 per player per year. Wamba anticipates even higher player values than that!
Now that Skillz has provided proof of concept, game developers are beginning to take notice. With its now proven massive profit potential, online esports is about to become the next major digital gold rush! Between the section of the industry Skillz has carved out with their patents and the section which Wamba has carved out with their patent, the two companies together seem to have gobbled up the available prime patent real estate in this sector.
Wamba's patent is valid until 2037 and appears to be a solid foundation for the fledgling company to take its place in the world of esports.
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View original content: https://www.prnewswire.com/news-releases/wamba-technologies-awarded-major-esports-patent-301542767.html
SOURCE Wamba Technologies, LLC
