iGaming is a fast-growing online gambling and betting industry. Key features:
- Includes online casinos, sports betting, lotteries, bingo and other online gambling
- Develops rapidly thanks to technology and internet accessibility
- Is regulated differently in different countries - from a complete ban to licensing
- The global market is estimated at more than $70 billion and continues to grow
Major trends in the development of iGaming:
- Mobile technologies make games more accessible
- Blockchain ensures security and anonymity
- Streaming and social networks attract a new audience
- Gamification increases player engagement
- Improved graphics and 5G improve the gaming experience
Promising technologies: - VR/AR for the effect of presence - Cryptocurrencies for fast transactions - AI for personalization
Gambling or sports betting is a popular pastime and sometimes a favorite hobby in many countries. With the development of technology and the Internet, this activity has naturally migrated to the online environment. The online gambling market is developing following the development of web technologies. It is the connection between online technologies and entertainment that formed the basis for the name of the industry - iGaming.
This industry owes much of its success to the transition to a virtual environment, where players have constant access to online games.
What does "iGaming" mean The term "iGaming" can be used in both a narrow and a broad sense. In a narrow sense, iGaming means placing online bets on gambling using electronic means. Thus, the letter "i" in the word iGaming stands for the Internet, and "Gaming" is the gaming industry.
iGaming is the industry of placing online bets using electronic means.
However, in a broader sense, in addition to online betting, iGaming also includes gambling, which in turn includes casinos, sports betting, betting, lotteries, bingo, and card games.
When we use the term iGaming in a broader sense, we mean an industry that includes many online verticals and various organizations within these verticals.
For example, a company that develops gaming software for online casinos (a game provider, if you will) is part of the iGaming market in its broad sense. Likewise, a developer of gambling software platforms, such as SOFTSWISS, falls under the category of software providers for the iGaming industry.
In contrast to gambling, the outcome of which is heavily influenced by chance or luck, there are games that require certain skills from players.
The former include online casinos, sports betting, betting, online lotteries, bingo, fantasy sports, and eSports. The second group includes card games (poker, blackjack, bridge, etc.), as well as chess, backgammon and other games in which the outcome depends more on the player’s mental abilities than on chance.
There is some uncertainty as to whether the latter category of games should be included in the broader definition of iGaming. However, you will definitely encounter representatives of both categories at iGaming events.
How it all began The iGaming industry has grown rapidly, driven by urbanization, technological advances, and the rise of the Internet worldwide. Below we highlight the key events that have shaped its development since its inception.
1994: The government of the Caribbean nation of Antigua and Barbuda passes the Free Trade and Processing Zone Act, which allows for the issuance of licenses to companies wishing to open online casinos.
1996: The Kahnawake Gaming Commission (KGC) is established. Its main activity is licensing online casinos worldwide. In 1996, there were only 15 gambling sites, but just a year later there were already 200.
1997: The rapid growth of the industry attracts the attention of legislators. After much deliberation, in 2006 the US Senate finally passes the Internet Gambling Prohibition Act, which makes it illegal to promote and sell gambling-related products and services to the public. However, several years ago this law was repealed and revised. Now decisions and regulations in this area are made at the state level.
2005: The UK passes the Gambling Act, which establishes the Gambling Commission to supervise the gambling business and legalizes the activities of gambling sites.
2013: SOFTSWISS enters the iGaming market for the first time, introducing the Online Casino Platform.
Online Gambling Regulation Around the World With the rise of the Internet, not only local but also foreign operators can provide online gambling services to players. Legislative bodies in different countries strive to keep their finger on the pulse and, as a result, set their own rules.
An iGaming operator is a person who manages a gambling business, is responsible for its operations and marketing, and offers end users the opportunity to place online bets.
In many countries around the world, the activities of online gambling operators are legalized and regulated by the state. In Europe, such countries include Belarus, the Czech Republic, Estonia, Sweden, Finland, Norway, Sweden and others.
Such geographic markets are often called regulated markets, and activities in them require obtaining local licenses. As with land-based gambling establishments, online gambling providers must have a license to provide services to players in a particular country.
For example, in Lithuania, in order to obtain permission to launch a gambling website, operators must first open a certain number of land-based gambling establishments.
In some countries, online gambling may be completely banned, such as in Israel.
Other countries may or may not allow them. For example, the Netherlands had no bans or regulations on iGaming until October 2021. When the legislation finally came into force, the country became a regulated market and online casinos were legalized and legitimized.
The legality of online gambling in a particular country depends on its legislation.
iGaming today The COVID-19 pandemic has had a major impact on the gambling industry around the world. Land-based casinos, bookmakers, and gambling halls were closed, and sports events that players could bet on were suspended. This situation contributed to a sharp increase in demand for online gambling.
In 2021, the global online gambling market was valued at over $70 billion, and analysts believe this figure will steadily grow in the future.
The development of mobile technologies makes the iGaming industry more attractive to players compared to traditional land-based casinos. Players have a wide range of themes, cutting-edge graphics, animations, and modern soundtracks to choose from.
Even before COVID-19, the market growth was driven by the growing popularity of smartphones with improved internet access. The number of mobile devices worldwide is expected to only grow.
VR/AR technology can be a great help for those seeking new experiences in online gambling. Evolution, one of the leading content providers for live casinos, is currently exploring the possibilities of using VR technologies. The company previously released a VR game based on the popular slot Gonzo’s Quest.
Development Prospects Every year, more and more technologies appear that will influence the growth of the online gambling market. Let's take a closer look at them.
Blockchain Technology There are two types of online casinos based on Blockchain technology: cryptocurrency casinos with the integration of cryptocurrency payment systems and blockchain casinos.
In the first case, the online casino accepts deposits and allows withdrawals in cryptocurrencies such as Ethereum (ETH), Litecoin (LTC), Bitcoin (BTC), along with fiat currencies. Usually, such transactions become available due to the integration of cryptocurrency payment systems.
In the second case, cryptocurrency transactions take place without intermediaries, directly between the player's crypto wallet and the blockchain network through the game.
The technology records the results of the game, which eliminates the possibility of any influence on them. Blockchain also ensures maximum anonymity, since no personal information is required when registering a user account at the casino.
Using blockchain technology in online gambling provides many advantages. Withdrawals are processed almost instantly, without delays for the start of betting.
In addition, iGaming operators working with cryptocurrencies offer the lowest fees for deposits and withdrawals. The reason is the absence of intermediaries and decentralization.
Streaming and Social Media Streaming is very popular in the iGaming industry, so it is no surprise that the demand for streams and video content is steadily growing.
Streaming gives users the opportunity to watch their favorite streamer place bets in real time and experience the main moments of the game together with them. Streamers try to make the broadcast spectacular, so they choose slots with frequent bonuses and generous payouts and do not skimp on emotions during the broadcast.
All this attracts a flow of users to online casinos, especially if the given operator and a specific streamer are partners. The streamer posts useful information for players on their page, for example, the operator's rating indicators, as well as banners and links to the partner casino website.
Not every streaming platform encourages gambling advertising. For example, in 2021, the Twitch platform banned videos and broadcasts containing promo codes and referral links to gambling sites. The platform ordered streamers to remove such content, but it did not disappear completely.
Gamification To attract a young audience and maintain interest in the game, online casinos strive to diversify their content with gamification elements. Gamification is the addition of additional game elements to the game to increase player engagement and loyalty. This includes character selection, quests, level rewards, and much more.
Gamification allows the operator to increase player retention by motivating them. Depending on the choice of mechanics or gamification tool, the operator meets various player needs.
For example, organizing tournaments gives the player the opportunity to compete and become the first among others. The most successful players are displayed in the leaderboard and receive various bonuses from the online casino.
The choice of character allows you to take into account the personal preferences of the players, which affects their engagement and interest in the gameplay.
Quests are fun and interesting missions that become more difficult from level to level. For successfully completing the quest, the player receives a prize, and this encourages him to continue playing.
Game graphics and 5G Currently, many slot machines are created based on HTML5. HTML5 slots offer players fast-loading, small-sized games that work on all platforms. However, HTML5 is not the only standard used to develop slot machines. More and more attention is being paid to Unity, a game engine for developing 3D game content popular in mobile and table games in general.
Loading speed directly affects the loading time of a game. The solution comes in the form of 5G technology. Although this technology is more on the side of players than iGaming operators, 5G is one of the ways to improve the experience of playing in a casino or in sports betting.
iGaming is closer than you think There have been many factors that have influenced the growth of online gambling lately: the COVID-19 pandemic, forced lockdown, the development of mobile technologies. All this contributed to the transition of the gambling market from traditional land-based establishments to the online environment. iGaming is rapidly developing along with information technology, software, blockchain networks and mobile technologies. If any of this sounds familiar to you, then you've probably already had experience with iGaming.