Skin in the game: Derek Rathbun on real money gameplay as the next frontier of direct-to-consumer monetization

Welcome to The Business of Games Podcast, powered by Xsolla.Direct-to-consumer monetization is usually a conversation about where players spend: web shops, platform margins, owned storefronts. But what if the more interesting question is what they spend on — and what changes when real money is actually on the line?In this extended cut, host Lia Ballentine sits down with Derek Rathbun, Co-Founder and CEO of Gamers.bet, to explore a monetization layer most studios haven't seriously reckoned with yet: native real money wagering built directly into the game itself.Derek's path here runs through automotive technology, a front-row seat to the legalization of sports betting in 2018, and a series of conversations with retired industry veterans who confirmed the category was wide open. When Disney reversed course and launched ESPN Bet in late 2023, the cultural shift became hard to ignore — and the question of who would move first in games became a lot more urgent.We dive into:Why real money gameplay is already happening at scale, and what it costs publishers who don't control the experienceHow native wagering opens up a new design surface, not just a new revenue lineWhy this monetization layer is most powerful when it's considered at the conceptualization stageHow peer-to-peer wagering reaches players that traditional DTC models — cosmetics, battle passes — simply don't convertWhy cross-border settlement required a new approach to payments infrastructure entirelyHow responsible gaming and age compliance can be enforced without disrupting the core experienceIf the broader context of direct-to-consumer monetization is something you want to go deeper on, check out our episode, “Direct-to-consumer: making money without the middleman,” where Lia and Chris Hewish explore this territory alongside Derek and Arron Goolsbey of Mythical Games.Whether you're a studio founder thinking about your next investment pitch, a product lead exploring new revenue models, or just someone watching the business of games evolve in real time, this conversation offers a clear-eyed look at where monetization is headed next.Let's get into it.For more insights and resources, visit xsolla.com/podcast. Want to join the conversation? Follow and comment on our LinkedIn page at The Business of Games Podcast. That’s where we’ll be sharing updates, highlights, and continuing the discussion. And don’t forget to subscribe, rate, review, and share the podcast with friends who want to learn more about the business of games.