Take-Two Interactive’s basketball video game series NBA 2K is leaning into pay-to-enter contests through an expanded technology partnership, and additional integration of bet-on-yourself online games against strangers could follow—as could the risk of unwanted outcomes.
The game publisher and The Play Company (formerly known as Play One Up) this month unveiled a first-of-its-kind in-menu promotion where NBA 2K25 players are encouraged to enter paid contests. As part of a multiyear agreement, The Play Company facilitates paid NBA 2K25 matchups through its Play OS app, and it shares revenue generated from entry fees with Take-Two.
The Play Company, which counts former NBA star Victor Oladipo among its investors, operated independently for years without explicit in-game menu promotion from 2K. It was mainly used to connect hardcore, high-talent players with one another. Now, the casual gamers that make up the majority of 2K25’s user base—and who are driving up industry stocks—are the target demographic of a marketing push.
“You have the professional esports level where there’s a top 1% of players,” said The Play Company CEO Brandon Pitts in a video interview. “But what about the millions of gamers who desire to compete like the pros but just may not be on that skill level? … We wanted to really raise the stakes in order to vary the entries and make competitive gaming more accessible for all.”
Despite 2K featuring an official menu prompt to enter 1-on-1 paid contests for the first time, the meshing of the game itself and the Play OS app remains far from seamless.
The service is clearly advertised in the 2K25 menus, but getting into a paid game is a multi-step process, especially for new sign-ups. First-time users must scan a QR code from their phone, download the Play OS app that serves as a matchmaking portal, verify they are 18 or older (no official ID required) and enter a contest. Then, they must follow instructions from the app to add the person they are matched with through the 2K servers before entering their game session.
Pitts said some of that friction could be removed in the future, with the full process living within the 2K game menus. Such a change would likely supercharge the pace of user acquisition.
“We’re actually in the works with 2K to work on something regarding that,” Pitts said. “I can’t really dive too deep into details, because it’s definitely the early days, but we’re definitely working on evolving the platform and getting it to a level like that for sure.”
Users can stake up to $1,000 per match, and the company collects a 10% charge on entry fees.
The Play Company’s platform does not need to follow state-by-state gambling regulations because it is considered skill-based. Still, some of the behavioral risks resemble sports betting, including the potential for addiction, poor money management and loss chasing, unrealistic expectations of success, and inappropriate reactions to negative results.
Play OS has instituted sensible competitive fairness procedures. Behavioral protections, though, seem minimal.
To combat the dangers of newbies getting crushed by veterans, Play OS uses an Elo matchmaking system, and when users look to enter already created contests, top players are identified as “highly experienced.”
This system is helpful but not foolproof. It takes many games for Elo rankings to accurately reflect a user’s “real” skill level. Plus, in a skill-based matchmaking system that works as intended, most people will be monetary losers if they evenly trade wins and losses because the service claims a fee on each entry.
Defenses against other forms of cheating do seem sturdy, at least under the assumption that Play OS support staff is on top of its game responding to complaints. Users are encouraged to stream their games online so that there is clear video proof of foul play, and there are ways to report transgressions in the app.
But as someone who has closely covered daily fantasy sports and sports betting, I can see behavioral risk parallels between those activities and Play OS, which could also open the company up to regulatory scrutiny should its user count skyrocket. Some of what makes it a fun, engaging product might come with downsides.
For example, players who compete in Play OS games using MyTeam—the build-your-own squad mode in which you can pay real money for packs to obtain players that could improve your virtual roster—have a clear incentive to also spend on 2K’s microtransactions to keep pace with opponents. In other words, there is a possible spending arm’s race stacked on top of the money risked through Play OS.
There are no clear responsible gaming measures in place, such as self-imposed deposit limits and cool-off breaks, or notifications regarding time and money spent in the app.
And what about animosity between players? Because of sports betting and daily fantasy, leagues are dealing with a torrent of abuse and shady behavior from fans. Video game players are notorious for malicious language even without money on the line—a problem console makers and online gaming service providers Microsoft and Sony have long struggled to solve.
“There’s no way to really [prevent it], you can kind of obviously set community guidelines and kind of recommend that people be respectful and honor one another,” Pitts said. “But there’s not really a whole lot that we can do. … We can just tell them, ‘Hey, don’t do this or don’t do that, or don’t say this or don’t say that.’”
Take-Two declined to comment for this story.
In fairness, my experiences trying out Play OS this past week were not hampered by toxicity, though it quickly became clear how chasing losses to recoup funds could be a problem for some users.
I played two games using the app, both using free entries worth $5 that Play OS is offering widely to drive sign-ups.
My first game, a one-point loss using the Golden State Warriors, provided a similar experience to the average 2K Play Now Online contest that doesn’t put money up for grabs. In fact, I was surprised my opponent avoided the questionable tactics one would expect from a competitive gaming mode. They even controlled the on-ball defender the whole way, a sign of honorability among players.
My second game, a loss by more than 20 points using the Los Angeles Clippers, was never close. The matchmaking system had delivered me a “highly skilled opponent,” who lived up to that billing, clearly operating on a level beyond what I could ever dream of reaching.
“GG,” they messaged moments after padding their bankroll with a blowout win. “Rematch?”
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