Web board games that let users enjoy gostop, poker and baduk on mobile are gaining popularity. Regulations on web board games are easing, and mobile game usage among the core target group of middle-aged and older users is rising. With the government recently deciding to raise the monthly payment limit for web board games to 1 million won, game companies with a high share of web board titles, such as NHN and Neowiz, are feeling a favorable breeze.
◇ Web board games were treated as gambling but remain steady "cash cows"
According to MobileIndex, an app analytics platform, on the 29th, the web board games of major domestic operators NHN and Neowiz are ranking high in revenue. The two companies virtually split the domestic web board market given their high revenue share. As of last month, NHN's flagship web board games "Hangame Poker," "Hangame Seotda & Matgo" and "Hangame New Matgo" ranked 23rd, 33rd and 97th, respectively. For Neowiz, "Pimang New Matgo" and "Pimang Poker" ranked 50th and 88th.
Web board games are board games such as poker, gostop and janggi that can be enjoyed online. They cost less to develop and take less time than other genres, and once launched can be serviced for a relatively long period. Profitability is high, making them "cash cows" for game companies. In fact, according to Sensor Tower, "Hangame Seotda & Matgo" ranked No. 1 by revenue worldwide in the mobile casino card game genre from January to August this year. Based on Sensor Tower's revenue estimates, since its launch in Oct. last year, the game has recorded 4 million cumulative downloads and $130 million (about 180 billion won) in cumulative revenue.
However, because web board games involve betting with game money, they have not been free from gambling controversy. This is also why web board games are more heavily affected by government regulation than other genres. Since 2010, when mobile games began to spread in earnest, calls grew to regulate the gambling nature of web board games, and in 2014 the government capped the monthly payment limit at 300,000 won.
As a result, the domestic web board game sector shrank significantly. According to the Korea Association of Game Industry, the web board game market, which stood at 637 billion won in 2011, plunged by more than 400 billion won over five years to 226.8 billion won in 2016 after the regulations were introduced. The operating profit of major web board game companies also fell about 81%, from 290 billion won in 2013, just before the regulations, to 54 billion won in 2016.
That said, the regulation on monthly payment limits for web board games has been eased roughly every two years. In 2016, the monthly limit increased from 300,000 won to 500,000 won, and when the government raised the cap from 500,000 won to 700,000 won in Jul., web board game companies' revenue also showed a gradual increase. In addition, in 2020 the government scrapped a rule that restricted play for 24 hours if a user's one-day loss exceeded 100,000 won, signaling steady regulatory easing.
◇ Government moves to ease regulations… NHN and Neowiz poised to benefit
The government recently said it will again raise the monthly payment limit for web board games. The Ministry of Culture, Sports and Tourism on the 20th of last month preannounced legislation for a revision to the Enforcement Decree of the Game Industry Promotion Act. The core of the amendment is to raise the monthly payment limit for web board games from the current 700,000 won to 1 million won. The Ministry of Culture, Sports and Tourism plans to finalize the proposal after collecting opinions through the 30th.
The decision reflects a judgment that perceptions of web board games as gambling are gradually fading. The Ministry of Culture, Sports and Tourism said, "The regulation was intended to prevent illegal cash exchanges and excessive immersion, but with the sunset date of Jan. 1, 2026 approaching, it is time to review the policy," adding, "A balanced approach is needed between user protection and industry promotion."
The recent increase in mobile game use among middle-aged and older users has helped web board games shed their gambling image. In the early mobile game market, web board games were classified as a gambling genre, but awareness has since spread that the problem lies more in how they are used than in the games themselves. In particular, because web board games are highly accessible and can be enjoyed in short bursts, they have attracted middle-aged and older users.
In fact, mobile game usage among middle-aged and older users is high. According to the Korea Creative Content Agency (KOCCA), in this year's survey of game usage by age, 53.3% of those in their 40s, 31.3% in their 50s and 23.1% in their 60s said they play games. In particular, mobile games ranked No. 1 as the most used game type across all of these age groups.
Brokerages expect related game companies to benefit in earnings as regulations ease. Kim Jingu, an analyst at Kiwoom Securities, said of NHN, "On the assumption that the practical application of easing regulations on the web board business will be reflected from the second half of next year, we have proactively reflected NHN's web board business unit's year-over-year revenue growth rate by estimating the 2025 growth rate at 3.8% and the 2026 growth rate at 7.6%."