Tiles (image game property) doesn't work in BGE?

2.71RC

When using the image “Tiles” option (under “Game Properties”) I only get a solid colour in the game engine and in 3D view with textured shading plus GLSL.

Texture shows fine if the “Tiles” option is turned off (though obviously isn’t tiling).

It tiles fine in 3D view with solid shading plus texture solid and with textured shading plus multitexture.

Am I doing something wrong or is this not supported by the BGE despite being a “Game Property”?

tiling_problem.blend (443 KB)