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Proprietary software is computer software developed by an individual or company that’s licensed under the exclusive legal right of its owner. When bought, the purchaser is granted the right to use the program under specific conditions which usually indicate that they cannot modify, reverse engineer or redistribute the software.

Proprietary Software and Online Gaming

Many online gaming sites develop their own software for use in-house rather than seek a software developer to form a partnership. In the online gaming industry, this is considered proprietary software. There are a few advantages to the consumer by playing at a site that uses its own software.

Advantages

First, there is more diversity among the types of games offered. Since the software is developed internally it can be fully customized to add unique games. Also, proprietary software tends to have a more distinguished and unique feel to it. Many major gaming companies have numerous websites that are all on the same platform, there’s no differentiation among the sites.

Disadvantages

One of the most important disadvantages is the lack of security and reliability consistent with proprietary software. While the major gaming companies are reliable, well-established, publicly traded organizations; smaller sites that use proprietary software may not have this same reliability. Although this is rare since online gaming companies have too much to lose, when it does happen the effects can be disastrous.

There was a recent incident with administrators of an online gaming site being able to see other player’s cards. This site was built on proprietary software which proves the lack of reliability. This type of practice ended up crippling that site’s business.

Another disadvantage is the potential for low player volume. To keep games like Texas Hold’em running and profitable, many players are needed. Smaller sites may not be able to provide much competition since they are not part of the larger network sites.

Although proprietary software has the excellent advantages of customization and differentiation from other sites within its network, there are a few disadvantages that hurt its effectiveness. Reliability and security are major issues that accompany proprietary gaming software. Also, low player volume can be an issue due to the size of the site.

The trend of gaming websites seems to be networks linked together; all of which are owned by a major corporation. This type of system uses the same general software on all their sites; simply changing the theme. As this trend becomes mainstream, proprietary software may become a thing of the past.