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In this paper, we propose an approach for supporting the design and implementation of interactive and realistic Augmented Reality (AR). Despite the advances in AR technology, most software applications still fail to support AR experiences where virtual objects appear as merged into the real setting. To alleviate this situation, we propose to combine the use of model-based AR techniques with the advantages of current game engines to develop AR scenes in which the virtual objects collide, are occluded, project shadows and, in general, are integrated into the augmented environment more realistically. To evaluate the feasibility of the proposed approach, we extended an existing game platform named GREP to enhance it with AR capacities. The realism of the AR experiences produced with the software was assessed in an event in which more than 100 people played two AR games simultaneously.