Pt. 3 - A Proposal That Brings the Peer-to-Peer (P2P) Model to Life

The conclusion of our 3 part series on the state of gaming. If the industry is ripe for disruption, what is the solution? Here is a thought.

Like companies such as Airbnb and Uber created new opportunities in existing markets through a combination of technological innovation, effective incentives, and enhancements or alternatives to the traditional customer experience, P2P has the potential to be additive to the gaming industry without upending the business of the current power brokers. Because I like making bets.

Splash Inc. is leveraging the $500B creator economy by being the first truly level playing field where influencers and brands can get paid to create their own skill-based gaming communities. How? Competitions. With us, a creator can grow revenue and their own social media followings, all while owning their follower data, by creating games for their fans. Brands too!

No other platform has such an equitable model that rewards players, commissioners, and the host platform based on performance and engagement. In order to keep things fair, we utilize data analytics and machine learning to maintain a healthy community and protect player’s interests, while continually refining our approach and business needs to make sure that we’re always ahead of the ball.

Here’s how we’re realizing that vision:

• Implement a fair and transparent revenue-sharing model that rewards players, commissioners, and the host platform proportionally based on performance and engagement.
• Use advanced data analytics and machine learning to monitor player behavior, identify potential issues, and maintain a healthy community.
• Support the need for all sports enthusiasts to jump into the frenzy, brands and nonprofits as well.

Learn how to become part of the Commissioner Economy here .

We believe that by embracing a peer-to-peer gaming marketplace and introducing the right rewards and incentives to generate revenue for community builders, new dimensions of gaming can be unlocked. Multiplayer gaming isn’t intended to replace traditional models, but rather enhance the overall gaming market. We can do this by empowering players, incentivizing community-building, and creating a thriving, self-policed network that benefits all stakeholders.

This intersection of the creator economy, with a return to community at a time of unprecedented industry growth, has additional business benefits. From a marketing perspective, the multiplayer, community-based model lowers customer acquisition costs, increases retention, and nips the trend of gamer app jumping in the bud, similar to streamer churn. Because player paybacks are almost instantaneous, and because people want to play with their friends, acquisition costs are built into the rewards. Despite lower margins than single-player gaming, the network effect and ceiling are exponentially higher.

Better yet, brands are already lining up to get involved in exactly the sort of enterprise P2P represents. Take the Super Bowl, one of the biggest annual bonanzas for brand advertisers , for instance.

In 2023, more than 115 million viewers watched Super Bowl LVII. “To meet this reach,” according to WARC , “brands are forecast to spend $60.9 billion worldwide [in 2024] up almost one-fifth on pre-pandemic spending.” Brands seeking additional or alternative marketing opportunities can turn to P2P not only for exposure but also to improve engagement.

In other words, instead of spending $7 million for a 30-second Super Bowl ad spot that will fade in collective memories almost instantly, why not create and host a game that will engage millions of people on a daily, weekly, or even yearly basis?

Building games around the biggest sporting events allows brands to engage authentically with their ideal customer without the need for a clunky, overt sales message. This tees up an unconventional experience with a brand, outside of the typical media environment, for every player in that brand-sponsored community.

The best part? This enables organic and effective core-product messaging without the usual intrusiveness found in traditional methods.

Finally, there’s a charitable aspect to games that creates a whole new level of engagement for nonprofits. In 2023, an estimated $319 billion was donated to charityan estimated $319 billion was donated to charity . With creators soon bringing in $500+ billion and gaming already at $100+ billion, this becomes a trillion-dollar market. So what prevents a charity from hosting an NFL contest and donating half the proceeds toward its cause? Many tend to skip over these great use cases because we are so focused on increasing margins. But small margins on a trillion dollars still has a great outcome for everyone involved.

The traditional gaming model doesn’t need replacing — but it could stand to do with some healthy competition. Peer-to-peer gaming creates new revenue and experiential opportunities (and, as we’ve seen, even charitable possibilities) for players, commissioners, platforms, and brand sponsors all while helping to ensure the long-term sustainability of gaming through fair and ethical practices.

And the timing of P2P’s arrival couldn’t be better: in the nearly six years, the industry has brought in $30 billion in gross revenue and accounted for close to $350 billion in handle, including monthly-revenue growth from a low-water mark of less than $8.5 million to its highest at over $1.5 billion.

That sort of staggering growth all before potential legalization of sports gaming comes online in California and Texas must be viewed as both a can’t-miss opportunity as well as an obligation to innovate change, ensuring a vibrant, community-driven, and ethical future for sports gaming.

It’s important to remember what Splash Sports is at its core: playing with friends. With us, sports fans can find a place to engage with one another, build up friendly rivalries, and even make some money in the process. Come for the competition, stay for the community.

The future of gaming lives within thriving communities. So play against your friends, not the house.