Google just announced the release of Google AdSense for Online Gaming. It works pretty much the same as your pre-existing AdSense program, where you place video, image or text ads within your application/game and it displays contextually targeted advertising based on the surrounding content.

From the official Google AdSense blog:

You’ll be able to show these ads in placements you define, such as interstitial frames before a game, after a level change, or when a game is over. Members of our AdWords team will sell your in-game ad placements directly to top brand advertisers, and you’ll also see contextually targeted text and image ads based on content and demographic information.

Now if you’re a budding flash developer, don’t go getting your hopes up just yet – in order to be eligible for this beta program your games must have a minimum of 500,000 “game plays” with at least 80% of the traffic originating from the US or UK. If you fit the mold, here’s a direct link to the application.

So far there are only three marketers listed as partners on the info page: Sprint, Sony Pictures and esurance. I’m sure it won’t be long before that list starts to grow, the publisher round-up is already full of major players in the online game realm: ArcadeTown, Konami, Armor Games, Boonty, Demand Media, Heavy Games, Grab.com, Mochimedia and cafe.com.

This move was inevitable for Google seeing how they recently acquired Adscape Media, a small in-game advertising startup based out of the San Francisco, CA area.

Surprisingly, they already have a “Success Story” listed on the about page for social networking game developer Playfish. These guys primarily produce games that you can add to your Facebook or MySpace profile, so it’s a ‘little’ deceiving in nature.

Read the green box where it says “TRY.” Apparently if I offer Google Checkout on my site I will get free credit card processing until 2008!! Can you believe it?! 2008! Ok, so this is an old bug, but it’s the first time that I’ve remembered to take a screenshot when displayed.
Guess they haven’t been through the Google Adsense notices in quite a while…