ARTICLE
25 September 2026

From Club Penguin To Imagine Island: A New Era Of Children’s Online Gaming

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Goodmans LLP

Contributor

Goodmans is internationally recognized as one of Canada’s pre-eminent business law firms. Based in Toronto, the firm has market-leading expertise in M&A, corporate and transaction finance, private equity, real estate, tax, restructuring, litigation, intellectual property and other business-related specialties.
Magic Potion Games, founded by the creators of Club Penguin, has launched Imagine Island, a new online multiplayer game designed for children aged 6-13. With over one million players during beta testing and a successful Series A funding round, the platform prioritizes safety and transparency while preparing for major expansion through entertainment partnerships and paid memberships.
Canada Media, Telecoms, IT, Entertainment

Magic Potion Games, a game studio based in Kelowna, British Columbia, has created a new online multiplayer game, Imagine Island. The studio’s executive team is composed of seasoned industry professionals who first collaborated during the development of Club Penguin, a multiplayer virtual world launched in 2005. At its peak, Club Penguin attracted more than 200 million registered users worldwide.

Looking to create something new, Stephen MacDonald, Karin Johnson and Sascha Williams – along with an external advisory team – set out to develop another successful online game for a new generation of children. With gaming becoming increasingly popular among both children and adults, the team believed it was essential to prioritize safety and transparency when designing a platform tailored to children aged 6 to 13. MacDonald notes that “[a]s both game developers and parents, we’ve always believed Gen Alpha shouldn’t have to choose between fun and safety online.” This value proposition has driven the development of Imagine Island, and the team is eager to embrace the opportunities ahead.

Magic Potion Games is now preparing for a significant expansion of the platform, including the introduction of major entertainment partnerships and a paid membership program similar to that of its predecessor. Imagine Island has already attracted more than one million  players during its beta testing phase. To support its next stage of growth and accelerate these expansion plans, the company has successfully secured a Series A funding round, positioning it to scale the platform and reach an even broader audience.

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