Google updates advertising policy for NFT games, imposing restrictions on gambling-related titles

In a significant move, Google is set to update its advertising policy for cryptocurrency-related content, allowing advertisers to promote blockchain video games utilising non-fungible tokens (NFTs). However, there are notable limitations and restrictions, particularly concerning games involving gambling and token staking. This policy adjustment is a part of Google's ongoing efforts to create a regulated environment within the emerging blockchain and NFT gaming space.

Promotion of NFT games allowed, but with restrictions

Starting 15 September, Google will permit the creation of ads for blockchain games that offer in-game items, cosmetics, weapons, and other virtual assets as NFTs. This inclusion aims to embrace the growing popularity of NFTs in the gaming world, allowing developers to market their NFT-powered games.

Restrictions on gambling-related & staking games

However, Google's updated policy imposes strict limitations on games that involve gambling elements or token staking rewards. Games that enable players to wager or stake NFTs in the hope of winning real-world value, including additional NFTs, will not be allowed to advertise on the platform. This move underscores Google's commitment to preventing the promotion of potentially risky gambling mechanics.

Prohibitions on social casino & real money gambling games

Moreover, the policy explicitly prohibits ads for "social casino games" that reward users with NFTs and any "real money gambling" games. Additionally, games that allow users to lock up or stake their crypto or NFT assets to earn more cryptocurrency over time will also face advertising restrictions.

Differentiating between NFT-enhanced gameplay & gambling mechanisms

This policy update signifies Google's ability to distinguish between NFT games where NFTs merely enhance gameplay and those where NFTs facilitate gambling mechanics. Google's recent rules for the Google Play Store for Android developers, introduced in July, mirror this approach. Developers are permitted to incorporate NFTs into their games, provided they steer clear of incorporating gambling mechanics and prohibit the sale of NFT "bundles" through gacha or loot box-style mechanisms.

In conclusion, Google's evolving stance on blockchain and NFT gaming reflects its commitment to embracing innovation while safeguarding users from potentially harmful elements. By setting clear boundaries and enforcing them, the tech giant aims to strike a balance between open access and responsible regulation within this rapidly evolving digital landscape.