iGaming 101: meaning, history, types, and what the future holds
What is iGaming?
iGaming means any form of online gambling, including virtual casinos, sports and esports betting, and live dealer games.
Overall, iGaming stands out as one of the skyrocketing industries across the globe. Whether you’re a seasoned gambler or simply curious to see if iGaming might be your thing, chances are you’ve ventured into the realm of iGaming at least once.
Recent data shows major industry growth: in 2023, the iGaming market reached $88.65 billion, demonstrating a robust compound annual growth rate (CAGR) of 9.3%. The surge of iGaming popularity has a lot to do with enhanced user experience and accessibility via computers and mobile devices. It’s a vast and continuously expanding niche, and we’re here to help you know more.
Gaming vs. iGaming
The main distinction between gaming and iGaming is that the latter involves gambling. While online gaming consists of fun single- and multi-player games, iGaming includes online casinos, sportsbooks, lotteries, and other skill-based games. Even though the lines between the two have blurred in recent years, online games typically don’t involve using real money, as is the case with gambling.
Online gambling gets inspiration from the gaming industry to make the gameplay feel similar, turning iGaming into a blend of new technologies and classic gaming fun, which players really enjoy.
History of iGaming
Gambling has a long history dating back to ancient times; however, the first known casino was established in 17th-century Italy and was initially government-run to regulate gambling as public entertainment during the Venice Spring Carnival season. Fast forward to the digital era, let’s explore key milestones that have shaped the iGaming industry as we know it.
- In 1993, Curacao became a pioneer of iGaming, offering online gambling licenses in a vastly different internet landscape. By 1996, the first Master Licenses were issued by the Justice Minister of Curacao, decentralizing from offline regulation and enabling businesses to run online platforms and grant sub-licenses.
- Simultaneously in Europe, 1994 saw the launch of the first online iGaming website, introducing ticketing for the Liechtenstein International Lottery.
- A global breakthrough occurred in 1998 when Planet Poker became the first online card room with real-money games.
- The early 2000s marked the golden period for online gambling, with player numbers doubling annually from 2003 to 2006. By 2000, iGaming revenue had already exceeded $2 billion.
- In 2003, 888.com was launched, a decade later becoming the first exclusively online casino licensed in the United States.
- The next huge leap was smartphones in the early 2010s, introducing iGaming on the go.
- Between 2014 and 2017, VR technology evolved, progressing from PC-tethered to untethered headsets. Recognizing VR’s potential, Microgaming introduced the first VR games in 2016.
- In 2018, the US Supreme Court repealed PASPA (Professional and Amateur Sports Protection Act), opening doors for online sports betting.
- Looking ahead to 2027, the market is anticipated to reach $125.6 billion, evolving at a compound annual growth rate (CAGR) of 9.1%.
As online wagering, iGaming has maintained its core definition since 1993. Major players in the online gambling market are 888 Holdings, Bet365, Betsson, William Hill, VGC Holdings, Kindred Group, Sky Betting & Gaming, Stars Group, Ladbrokes Coral Group, and Paddy Power Betfair.
Considering that iGaming availability varied globally, the UK emerged as an early bird, establishing a robust presence with various iGaming software providers. Different countries within the European Union have witnessed steady growth in iGaming, which impacted the regulatory landscape as well.
iGaming types
The world of online gambling offers players numerous activities, including online casinos, sports and esports betting, poker, and more. Such diversity ensures that every player finds an option best suiting their preferences. Online gambling platforms offer a variety of choices, allowing players to enjoy slots or card games one day – and then switch to sports betting the next.
Online sports betting is one of the most popular forms of iGaming today. The goal is to predict the outcome of a sporting event to win a cash prize. You get the excitement of watching sports with the thrill of potential winnings. Online betting includes every major sport you can think of: football, cricket, soccer, tennis, golf, boxing, baseball, basketball, motorsports, horse racing, even fantasy sports, and, quite recently, esports. It offers a wide range of sports for enthusiasts and bettors to engage with, allowing them to use their knowledge and analytical skills to make informed betting decisions.
Online casinos are the primary platform for online gambling. Most iGaming platforms offer a wide range of entertainment options, including:
- Slots
- Card and table games
- Live dealer games
- Bingo
- Crash games
- Instant games
- Virtual sports
For casino players, spinning the reels in slots is a quick way to potentially win without needing experience. These games typically feature basic and special symbols, various themes, and multiple buttons. Bonus rounds are awarded for every combination of three or more identical symbols, and hitting a jackpot can enhance the gaming experience even further.
Live dealer games provide an immersive journey, allowing players to enjoy the authentic atmosphere of top Las Vegas casinos from the comfort of their own homes. Players can closely follow the dealer’s actions through multiple studio cameras and interact with other gamblers via real-time live chat.
Online poker offers a digital version of the classic card game, allowing players to participate in skill-based competition, strategic decision-making, and the opportunity to win real money. Players can enjoy a variety of poker types, tournaments, and cash games. With a focus on fairness and security, online poker has become a global phenomenon, attracting players of all skill levels and contributing to the vibrant and competitive iGaming landscape.
Blockchain and cryptocurrency gambling represents a rapidly growing segment of the iGaming industry, allowing players to wager using cryptocurrencies like Bitcoin, Ethereum, and other digital assets. While it offers enhanced security, transparency of process, and anonymity for players, the challenges currently entail varying laws and regulations across jurisdictions, related to the legality of those platforms. Considering the volatility of cryptocurrency value, there are also financial risks that might affect players’ winnings. Nevertheless, as regulatory frameworks become clearer and more supportive, this segment of the iGaming industry is expected to expand further.
Is cybersport considered iGaming?
Actually, it’s not. Cybersport itself means competitive video gaming or esports, where players compete in video game tournaments. On the other hand, iGaming refers to online gambling activities, such as online casinos, sports betting, poker, bingo, and other similar forms of internet-based wagering. While both cybersport and iGaming involve online activities, they serve different purposes and cater to different audiences.
Esports betting and gaming
Betting on esports has surged in popularity, captivating a dedicated audience of gamers and bettors alike. Leading esports titles, like League of Legends, Dota 2, Counter-Strike: Global Offensive (CS: GO), and Overwatch, draw in massive crowds with their structured leagues, tournaments, and global appeal.
Esports betting mirrors traditional sports betting in many ways. Gamers can place bets on various aspects of matches, including outcomes, map scores, player performance, and even make in-play bets during live events.
The integration of esports into iGaming extends beyond betting, with casino games and virtual sports inspired by popular esports titles. These offerings combine the excitement of esports with the diversity of iGaming, creating an immersive gaming experience for enthusiasts.
The future of iGaming industry: key factors
The iGaming sector captivates nearly half of the global population and has been experiencing rapid growth since the 2000s. Experts predict that the industry’s revenue will surge by 52.4 percent by 2030.
The future of iGaming is closely tied to regulatory advancements which help legitimize the industry, protect players, and ensure fair play. Countries like the UK, Malta, and Sweden are leading the way with stringent regulations.
Technological innovations, like VR and AR, are expected to continue revolutionizing gaming experience by offering immersive, interactive environments. AI is transforming customer service, game design, and player safety. Cryptocurrencies offer faster, more anonymous payment options, attracting tech-savvy players.
That said, iGaming companies should recognize the industry’s intense competition and strive to deliver top-tier solutions to attract and retain players. As internet accessibility improves globally, emerging markets in Asia, Africa, and Latin America present significant growth opportunities. Localized content and culturally relevant games will be key factors there.
The iGaming industry’s future is bright, with ongoing innovations and market expansions promising dynamic and evolving prospects. Operators who can adapt to technological advancements, regulatory changes, and consumer preferences will be well-positioned to thrive in this exciting sector.
