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Video games and betting: publishers, platforms, sportsbooks and lotteries

Is a new player worth what the game pays to win them?

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The prompt

Lanternfox (a fictional studio in Singapore) runs a free-to-play mobile game. It pays USD 2.50 in advertising for each new install. 4 percent of new players ever pay, and a paying player spends USD 60 over their life in the game. The app store keeps 30 percent of in-game purchases. Ads shown to players who never pay bring USD 0.40 per install, and servers and live operations cost USD 0.20 per install. Should Lanternfox spend more on advertising, and what would change the answer?

Run this case in the simulator Next case: Same bets, different tax: where should a sportsbook spend its marketing?

Practice with a partner

1. Send the interviewer link to a friend. They read the case aloud and hold the answers.

2. You open the candidate view: you see only the prompt, a timer and a notes box.

3. Speak the case out loud. Your partner shares data when you ask, then scores you with the rubric.

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Clarifying questions, with the interviewer's answers

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Now run it yourself

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Run this case in the simulator Next case: Same bets, different tax: where should a sportsbook spend its marketing?

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