The mobile game market is growing rapidly and — parents of game-addicted children beware — the makers of these time-wasters are coming up with novel ways to drain your wallet.
Skillz, which launched last week with 10 games from 10 developers, is the first company to enable legalized mobile game betting in 36 states, including Massachusetts.
"We offer tournaments for as little as 25 cents to $5, although we'll be offering higher stakes in the future," said Andrew Paradise, founder and CEO of Skillz, which has offices in Boston and San Francisco. "People are interested in competing and in having meaningful stakes. It gets your adrenaline pumping, even competing for 25 cents. Winning money makes it that much more exciting. If you ever thought you were good at a game, we're enabling you to put your money where your mouth is."
Skillz allows only games of skill, however, not games of chance, to be played for money, Paradise said. The majority of tournaments last between one and five minutes and are played by two people who deposit money to play using Visa or PayPal. The winner receives a check for a cash prize that can range from 50 cents to $20.
"There's no question mobile games are going in this direction," said Mike Vorhaus, president of the Magid Advisors unit at Frank N. Magid Associates, a Los Angeles firm that advises entertainment companies. "The trend is clear. The majority, though, are free games where you have the option to spend money."
Clash of Clans, a game made by the Finnish company Supercell, is one of the most successful examples.
Vorhaus acknowledges that this trend might be cause for worry to parents who suddenly discover their child, or spouse, has racked up thousands of dollars on their credit cards by playing such games.
"But you can get your kid a PayPal account with a fixed amount to spend," he said.
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