As Switex Goes Live, the Unregulated Gaming Industry Attracts More Attention from Authorities

The gaming industry is heading towards a staggering CAGR of 8,2% since (2016) and this is projected to continue at the same pace until at least 2020. Nevertheless, during this highly successful streak, the gaming industry has encountered several obstacles, which are typical of any market that experiences rapid growth and which affects so many people.

It is estimated that there are over 2,6 billion gamers. With so many people involved, and in an industry enjoying such growth that a single game can generate over $500 million in revenues in a single year, these eye-opening figures have also now started to draw the very keen eyes of the authorities.

In 2016, Valve, the provider of the Steam platform, sent out warning letters to virtual goods gambling/trading websites which were using Steam’s open API. These websites were very popular among gamers, especially one game: Counter Strike Global Offensive (CSGO). Unfortunately, these websites operated (and continue to operate) in grey areas of legality and do not adhere to any regulations or laws. Hence, Valve was put under pressure by the Washington State Gambling Commission to stop skins (virtual goods). Almost overnight, many of these very successful websites had to close or significantly change their business model.

This was not the the first time that the authorities felt the need to get involved in the matters of the gaming industry. There were a number of earlier cases, particularly in regards to gold trading within MMORPGs between 2005–2009.

The last two years have also seen significant additional changes to the gaming industry thanks to intervention from the authorities. In 2017, China, the world’s biggest gaming market, created a new law which forces the likes of Dota, League of Legends, and other games to reveal the actual odds of scoring good. And in 2018, the Dutch Government introduced the same.

Websites which relied on Steam or other game publishers have had to adjust to these new changes. Basically, the time has come for the gaming industry to start moving away from this “grey area” of legality and to become more and more a trusted part of the lives of those who dedicate so much of their time and passion to it.

At Switex, we are constantly checking to make sure that we comply with the newest regulations and laws. As a result of this ethos, Switex is proud to be the first independent, open and legal market for virtual goods.

With its cutting-edge technology system and strong backing from its parent companies, which are both listed on the German Stock Exchange, Switex has the power to overcome any future obstacle and thus become the world’s best market-platform for virtual goods.

Check out the Switex platform which is now fully live and discover a brand-new world for virtual goods.