This is the latest game we played this morning from my Games for Learning book. The premise is the same as using flash cards and asking the child to read the word but it is made more interesting by turning it into a game.
We each had a pyramid shape drawn on paper. I wrote the words on other pieces of paper, one word per sheet (or you could use flash cards/magnetic words). I asked Harry to read the words one by one and if he did, with two chances, he got to colour in a section of his pyramid (although Harry chose to fill his in with Lego bricks!). If he couldn't read it, the word passed to me and I read it and coloured a section of my pyramid. The first one with a complete pyramid is the winner.
As the child gets first go at the words, they are likely to win unless the words are all too difficult. I started with easy ones so Harry wants to play again - he could read them all by sight, and I will include some more difficult ones next time that he may need to sound out.