Swedish gaming studio FunRock, a subsidiary of Fragbite Group, has secured a new B2B development contract valued at approximately €120,000 (around SEK 1.3 million), alongside a long-term revenue-sharing agreement tied to player engagement performance.
The project will see FunRock develop a custom game based on its Capital War engine, designed for both PC and mobile platforms. Rather than functioning as a traditional gambling product, the game will sit alongside an operator’s core iGaming offering as an engagement layer intended to increase player retention and repeat play.
A Hybrid Revenue Model
Under the agreement, FunRock will receive a fixed development fee for building and customising the game during the first half of 2026. Beyond the initial payment, the company will also earn a revenue share from player traffic transitioning from the game into the operator’s iGaming platform, potentially generating recurring income for as long as the game remains active.
This hybrid model — combining development fees with revenue participation — is central to the studio’s evolving B2B strategy. It allows FunRock to benefit not only from project delivery but also from the long-term success of the operator’s platform.
Supporting a New iGaming Launch
The new game will form part of the global launch of a new iGaming operator expected in summer 2026. By introducing progression mechanics and competitive gameplay elements, the title aims to encourage players to spend more time within the ecosystem and ultimately drive additional revenue through the operator’s primary gaming content.
According to FunRock leadership, the concept builds on traditional entertainment gaming principles while integrating them into the broader iGaming environment.
CEO Magdy Shehata described the agreement as proof that the company’s proposition “resonates with the market” and strengthens engagement within client platforms.
Expanding the B2B Game Development Strategy
The deal also reflects a strategic shift within FunRock’s operations. The studio has recently rebranded its “Hybrid work-for-hire” unit to “B2B Game Development”, signalling a clearer focus on creating custom games and engines for external clients in the gaming and iGaming sectors.
Management says expanding the client base is a key priority for the division, with additional opportunities currently in the pipeline as the company seeks to build a broader portfolio of partner projects.
A Strategic Move for Fragbite Group
For Fragbite Group, the agreement highlights how game development expertise can be leveraged beyond traditional publishing models, tapping into the fast-growing iGaming industry. By combining bespoke development services with performance-based revenue streams, the group is positioning FunRock to generate both upfront project income and longer-term recurring returns tied to player engagement success.
As iGaming operators increasingly compete on retention and user experience rather than acquisition alone, tools that gamify the player journey — such as FunRock’s new project — may become an increasingly valuable component of the industry’s growth strategy.