While iGaming is an all-encompassing industry term that covers all types of online gambling, from online casinos to sportsbook sites, as well as lotteries, sweepstakes, or skill and numbers games. With the availability of online platforms and payment methods, the iGaming industry has been growing rapidly over the past decades. Read on with Ace Alliance to learn more about online gambling, how the industry got its start and where it’s at today.
iGaming and Online Gaming – What’s the Difference?
While both iGaming and online gaming use innovative technological platforms, integrated tools, and mobile apps, iGaming strictly relates to all methods of gambling online. It brings together players and other business professionals, who design and provide the software platforms and technical architecture that site operators use. And with current projections set to grow in Europe by 4.43 % between 2024-2029, the iGaming industry is estimated to reach USD 46.74bn in 2024.
The History of iGaming & the Industry Today
iGaming took off in the early 1990s as the internet became more accessible worldwide. Online gambling first appeared in 1994 at the Liechtenstein International Lottery. Later, in 1998, Planet Poker became the first official iGaming website with an online poker card room, which inspired others soon to follow with other gambling sites throughout the late ’90s and early 2000s.
When the Free Trade & Processing Act was passed in 1994, in Antigua and Barbuda, it allowed licenses for online casinos. By 1996, there were only 15 online gambling websites – but by 1997, that number had increased to over 200. By 2018, the online gambling market was estimated to reach USD 56.06bn as newer tools and platforms continued to crop up.
Today, national and international regulatory authorities have stepped in and provided rules for operation and licensing for online gambling markets. Estimates for the iGaming industry are predicted to reach USD 125.6bn by 2027, and it’s growing roughly by 9.1 % annually.
Key Periods in the Development of the iGaming Industry
- 1994 – The Free Trade & Processing Act was passed and online betting and gambling first appeared with the Liechtenstein International Lottery.
- 2000s – Often called the iGaming “Golden Age” as a period of rapid growth of online casino games when industry figures more than doubled annually.
- 2010s – Mobile gambling and payment options became gradually available with the invention of smartphones and devices.
- Today – VR, AR, and even AI advancements have changed the ways players can experience gambling online through integration with other platforms and smart devices.
Types of iGaming
Industry developers and providers create diverse platforms for online gambling site operators, which are consistently UX-optimised and straight-forward for players to use. Let’s take a look at the options below to which types of online gambling platforms there are and how they differ:
Online Casinos
Online casinos are the powerhouses of the online gambling industry as the prevailing popular choice among most players. Online casinos offer the widest variety of options for classic casino and dedicated site games, slots, lotteries, and more – and many with a live dealer.
Live Dealer Studios
Many online casinos have caught up with trends and integrated live-streaming tools to broadcast games in real time allowing players to engage with real casino staff through live-streaming technology. Live dealer games allow players to participate worldwide as cameras, microphones, and software tools allow online casinos to broadcast in real time. Players can interact with dealers, other players, and place bets from their phones or computers, and rely on a fully immersive experience.
Sports Betting & Bookmaker Sites
Ranking up there with online casinos, online sports betting platforms will always be a player favourite due to the broad coverage and betting options for all types of sports, including esports. Online sports betting usually takes place either before the start or during a match, as bettors connected through live streaming platforms can still place live bets during the action.
Online Gambling Regulations and Industry Standards
Online gambling sites are regulated both internationally and locally to ensure fair play, security, and safe online payments and game experience. Operators of online gambling websites need to be granted licenses to offer services for players; and complying with these regulations often means implementing certain security and fairness features, like using identify verification and AML measures. The main international authorities regulating online casino licensing today are primarily:
- Kahnawake Gaming Commission (KGC), 1996
- The Curaçao Gaming Control Board (GCB), since 1999
- The Malta Gaming Authority (MGA), since 2001
- The European Gaming and Betting Association (EGBA), since 2007
- The United Kingdom Gambling Commission (UKGC), since 2007
Key Compliance and Licensing Factors in iGaming
Legal frameworks to regulate online gambling sites can range in requirements, particularly with ever-growing technologies today. Some rules require basic platform tools and restrictions as well as AML compliance. But which types of licenses are available?
- Operator licenses – cover online gaming operations, payments and customer data.
- Software provider licenses – for game developers in iGaming software.
- Affiliate licenses – for marketing professionals and businesses to promote online gambling.
These regulations cover more than just the licensing rules for operators and fees, however. Taxes are now enforced on winnings in most countries and some operators prefer authorities with more favourable tax brackets.
European Online Gambling Regulatory Practices and Rules
Born in Europe, the first gambling houses appeared in Italy as a “casa,” and the term casino took off from there. In Europe, the iGaming industry is subject to international and national regulatory bodies, like the Ministry of Finance in Czechia, for example. While there are no EU-specific laws for iGaming regulation, the EU interacts with gambling regulations a fair bit through policy nudging. In addition to the UK Gambling Commission authority, there are other country-specific entities, like:
- Italy – Amministrazione Autonoma dei Monopoli di Stato (AAMS)
- France – Autorité de Régulation des Jeux en Ligne (ARJEL)
- Spain – Directorate General for the Regulation of Gambling (DGOJ)
- Germany – State Treaty on Gambling
Latin American Online Gambling Regulations
In 2016, Colombia became the first LATAM country to legalise and regulate online gambling. While Mexico has no nationally-specific regulations in place, online gambling has been permitted since 2004. Prohibited since roughly the 1940s, from December 2023, Brazil finally opened its doors to fixed-odds betting on online gambling sites as well and the iGaming market in LATAM is expected to triple by 2026.
Regulations for Online Gambling in Asia
While there are generally stricter regulations in the region, regulatory bodies like the Philippine Amusement and Gaming Corporation (PAGCOR) have still sprung up to meet market demands. Rules are decided based on states in India, and online gambling is legal in some. Japan recently announced its plans to develop integrated resorts with casinos for online gambling by the mid-2020s.
Gambling Online with Crypto Payments & eWallets
The arrival of cryptocurrencies in the online gambling market gradually pushed the need for more payment options and digital wallet app integrations on gambling platforms. Newer features were necessary to ensure safe, secure and legal transactions to protect players’ data and privacy; but at the same time, paying with crypto is advantageous because of instant processing and lower fees. Unlike more traditional fiat casinos, crypto payments encouraged the rise of crypto online casinos, where payments are decentralised from national exchanges on a digital ledger called the blockchain.
- Blockchain is a relatively new technology where game rules, and other dimensions like transactions, can be handled automatically through intelligent on a digital ledger.
The Influence of Mobile Technology on the iGaming Industry
There are apps for everything nowadays, and online gambling apps differ by game, payment app or eWallet, and by device. Mobile gaming for Android and iOS allows players more autonomy, personalised features, and flexibility overall. There are some options exclusively for mobile iGaming, and some mobile carriers in local European countries even offer payment options with monthly phone bills.
iGaming & Overcoming New Challenges in the Market
While the industry continues to reach new heights, emerging markets in the iGaming industry make staying on top of the latest developments tricky as new operators, providers, and national regulatory authorities continue to pop up as online gambling sites become more and more popular, particularly in the Latin American and African regions, and in Europe, where the market is more diverse. Newer entities applying for licensing and greater technological advancements mean that the regulatory landscapes are also constantly adapting to players, tools, services, and mobile apps. The key challenges and growth areas for the iGaming industry going forward are mainly:
- Staying informed on emerging markets in iGaming worldwide
- The ever-adapting national and international regulatory landscapes
- Continuous AI & technological integration and adaptation measures to keep up with advancements
- Keeping up to date on iGaming industry marketing trends and developments
How AI, AR & VR Technologies Are Changing the Game
AI features on online gambling sites have increased the range of services and options for players – particularly with user account management and more personalised engagement from customer support. On top of that, newer technologies like AR (augmented reality), VR (virtual reality), and blockchain transaction processing have transformed the iGaming industry through the popular features they made possible.
AR allows players to blend the digital game elements with their physical environments, like using a mobile phone or tablet to join a live dealer poker game from the comfort of your couch. VR, on the other hand, is almost the opposite. It involves immersing the player in the interactive digital elements of the game more fully, like at virtual casinos, where players can go beyond the game and walk through the lobby or interact with other players in real time.
Top Events Shaping the iGaming Industry Today
These networking events foster effective collaboration among industry professionals and stakeholders. Some examples to look for leading in iGaming events today are:
- SIGMA (iGaming Summit in Malta and World Summits), the global iGaming hub regularly holds events in Asia, the Balkan Western CIS countries, Americas, Europe, and Africa.
- The International Casino Exhibition (ICE), who’ve been holding regular yearly events for over a decade, and based out of the UK.
Recently, Ace Alliance led an engaging interview series with the leading names in iGaming during the SiGMA Europe event. With over 30 interviews worth of experiential leadership and insights, you’ll find something more to learn about iGaming in our series.
How Conferences and Expos Drive Growth & Innovation
Hubs, conferences and events have contributed to the growth of iGaming by connecting tech innovators and operators to explore fresh approaches and greater possibilities to connect in the industry today.
These unique events allow for dynamic collaboration and networking and foster a greater connection among diverse iGaming professionals in a short period, allowing for further and faster industry growth.
Blending Safety & Responsible iGaming Approaches
Responsible gambling is vital for players to maintain enjoyment and trust in the craft. In a bid for operators to enforce responsible gambling, certain regulatory bars have been raised to serve users better. Key Initiatives Promoted by Operators:
- Setting Gambling Limits: Deposit and gaming time restrictions are set to help players manage their online activities.
- Transparency Tools: Transparent betting involves a detailed history for greater accountability.
- Age Verification: Prevents the participation of underage users, determined according to national regulations.
These measures are put in place to make sure there is an enjoyable and safe gaming environment for global participation.
Conclusion – What’s Next for iGaming?
The iGaming sector has positioned itself for continuous growth, powered by the latest technological advancements and regulatory refinements and policies to encourage the competitive, entertaining experience that online gambling sites can provide. With Ace Alliance’s guide to iGaming, you can connect the dots between industry terms, professionals, and betting opportunities and learn to improve your strategy quickly to find the best opportunities. At Ace Alliance, we work to deliver our readers with expert insights oriented to players and industry professionals alike on the important trends in iGaming. Check out our homepage for more guides, expert tips from industry professionals, and which events are next on the horizon for iGaming.