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It's not about physical vs digital games, it's about ownership
(popcar.bearblog.dev)
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It really depends on your goal. Obviously you can eliminate most cheating by a server model that never trusts the client.
This does not eliminate other possible client side cheating such as wall hacks or aim bots.
As I said, there is a logical problem to solve here because in the case of wall hacks (ie seeing enemies through walls) the client needs enough information to be able to show an enemy around a corner quick enough to make sense for a FPS. Visibility calculations are entirely possible and I am sure you could find creative ways to limit this as much as possible.
Aim bots or trigger bots are a lot harder, but for competitive games heuristic based anticheat shows a lot of promise without having to hook the kernel in a losing game of cat and mouse.