In a broad sense iGaming refers to different entertainment options that enable players to place bets with the help of electronic means.
iGaming is the industry that covers a wide scope of gambling activities including sports bets, online casinos, lotteries, online poker games, etc.
In a broad sense iGaming refers to different entertainment options that enable players to place bets with the help of electronic means. The industry is divided into various subsectors and is marked by the fast-growing development in recent years.
iGaming falls into the category of young sectors that came into existence in the 1990s. Here are the main stages of the industry formation and development.
As of today, the industry is understood among the most fast-growing sectors. Within the last 5 years the iGaming market size increased more than twice, from $40.15 billion to $85.13 billion. Furthermore, the experts predict further explosive development of the industry – the overall market size is expected to reach $132.90 billion by 2029.
What about the number of players involved in iGaming? The statistics break record after record as well. The total number of gamblers is estimated at 1.6 billion people, and this number steadily grows. At the same time, the number of people who participate in iGaming products at least once per year exceeds 4.2 billion (51.3% of the total world population).
The rapid development of the iGaming industry can be explained by a number of factors.
The iGaming industry is much broader than just online gambling. It comprises any form of online betting products where players try to predict future results and make money wagers. The sector is divided into the following subcategories:
Sports betting products form the largest iGaming subcategory. The revenue from online sports betting is 45.8% ($38.9 billion) of the overall revenue generated by the market in 2023.
Betting platforms offer their users up to 1000 different betting options for a top-rated event. Furthermore, players may place bets on both popular and exotic sports.
Sports betting products are characterized by the following advantages:
Aside from traditional sports events, top-rated betting platforms provide players with access to eSport events (Dota 2, Counter Strike, StarCraft, etc.).
Online casinos are the second largest subdivision of iGaming. According to Statista, online casinos generated 36.3% ($30.95 billion) of the total iGaming revenue in 2023. This subcategory contains slots, card games, roulettes, and dice games.
When talking about the main advantages of online casinos, the following ones are pointed out:
The providers of online casino games constantly work on solutions that are able to satisfy a player’s excitement and interest.
The third subcategory of the iGaming industry includes different online lotteries and bingo games. In 2023 such solutions brought 17.8% ($15.16 billion) of the overall iGaming market revenue. Since 2017, the share of profit brought by online lotteries has dropped down by 4%, but nevertheless this iGaming subdivision is still popular among players.
Innovations are among the key triggers that move the iGaming sector forward and attract more and more players. Which advanced technologies and up-to-date solutions are the main drivers of industry development?
There are two ‘versions’ of integrating the blockchain technology into the iGaming sector: platforms that accept crypto payments and blockchain-casinos.
The first form means that a gambling platform accepts crypto payments (BTC, ETH, LTC payments) and makes it possible to open an account in crypto assets. Platforms partner with crypto payment gateways to guarantee secure and fast transactions.
When talking about blockchain casinos, the whole gaming process is fixed within blockchain; which is why the technology eliminates the possibility of any influence of game results.
The usage of the blockchain technology provides gamblers with a number of advantages. They can withdraw funds instantly and deposit money paying minimum fees.
Augmented reality and virtual reality are innovations that build the most realistic user experience. The technologies are exceptionally widespread in the sphere of iGaming as players completely immerse themselves in the gambling atmosphere. Virtual dealers and the ability to see other players give the feeling that you entered a real casino.
At present, AR & VR technologies are just on the threshold to change the iGaming industry; meanwhile, their popularity is gaining momentum. According to analysts, the AR/VR market is going to grow from $29.7 billion in 2023 to $58.1 billion in 2029.
Furthermore, the innovations are expected to be integrated into mobile games and wearable devices so that such technologies are going to become an integral part of our future lives.
Artificial Intelligence (AI) is understood as the gamechanger in most sectors in the XXI century, and the iGaming industry is not an exception.
First and foremost, the AI technology helps business owners increase the security and fairness of the gaming process. Artificial Intelligence applies a set of algorithms to analyze users’ behavior and detect players who violate the rules.
Furthermore, AI-powered algorithms help businesses to collect the information about their players’ preferences and offer them gaming options that entirely match their expectations.
Due to the Internet of Things (IoT) solutions players experience more personification. The technology expands the availability of online games, simplifies the integration of immersive technologies and improves the quality of the gaming experience.
As such, the iGaming industry falls into the category of sectors that welcomes innovative technologies through which the industry is able to offer gamblers the best possible solutions, personalization, and the feelings of a real gambling process.
Despite the scope of strong points and the fast-growing popularity worldwide, the iGaming industry faces some hurdles that restrain its development. Here are the key ones:
In recent times a lot of factors including the COVID-19 pandemic, the lockdown, the explosive development of mobile technologies are catalysts of the rapid growth of the iGaming industry. The sector attracts more and more players, offering them a wide range of gambling options that differ in genres, topics, and gaming mechanisms. Furthermore, innovative technologies make everything possible to improve the user experience. According to analysts, the iGaming market is expected to generate more and more revenue within the next years.
The iGaming sector includes three main subcategories which are sports betting, online casino games (including poker rooms), and lotteries.
North America is the leading region where iGaming products generate the highest revenue ($25.22 billion in 2023). The other top-3 regions according to the popularity of gambling solutions are Europe and Asia Pacific.
iGaming is still among the most fast-growing sectors that attracts billions of players. When talking about the future of the industry, iGaming is undergoing some transformations now as it is influenced by innovations and recent technologies. New markets, trends, game mechanics, and innovations are ready to build the future of the market that is ready to reach the $132.90 billion revenue by 2029.