This paper presents a theoretical framework, which has been adopted in designing an on-line multi-player strategy game Europe 2045. Europe 2045 is an educational tool for high school social science courses, aimed at familiarizing students with political, economic, and social issues in contemporary Europe. Apart from learning facts, players develop a range of key skills: discussion ability, negotiation, teamwork, and group decision-making. The presented theoretical framework is based on a critical analysis of crucial issues, which seem to determine the success or failure of development and implementation of an educational game in the formal school environment. It demonstrates key approaches the authors of Europe 2045 have adopted in order to overcome already known problems related to game-based learning. On a general level this paper discusses issues related to formal fact learning in educational systems and the possible role of educational games in enhancing these systems.