What is iGaming? Types, History, Industry, & Future 2025

This guide covers everything you need to know about what is iGaming, including online sports betting and casino market insights, history, popular games, obstacles, regulatory landscape, and more.

Alex ran a mid-sized casino and watched helplessly as younger competitors dominated the digital space.

He struggled for months but one day…

…one strategic pivot changed everything- embracing iGaming.

The online platform wasn’t just another sales channel- it was a gateway to global markets, 24/7 operations, and dramatically lower overhead.

Alex transformed his traditional business model by understanding digital player behaviors and creating engaging online experiences.

Want the same success trajectory as Alex’s?

Here’s a guide to mastering iGaming that goes beyond the basics.

Let’s dive in!

What Does iGaming Mean?

iGaming refers to any form of wagering that takes place online through digital platforms like websites and mobile applications.

It includes popular casino games, sports betting, poker, virtual slot machines, live dealer games, bingo, esports betting, and more.

Instead of going to a casino, players can gamble from the comfort of their homes or anywhere with internet access.

These games are easy to find and play through websites and apps.

As more people use smartphones and the internet gets faster, online gaming has become increasingly popular worldwide.

Different countries have different regulations with some allowing iGaming freely while others maintaining strict regulations or complete bans.

By the end of 2024, the market size of the iGaming industry is estimated to reach USD 93.26 billion.  It is expected to reach USD 153.21 billion by 2029.

As the technology improves, the iGaming industry continues to grow, introducing new ways to gamble online with more exciting and interactive experiences.

The Most Popular Types Of iGaming You Should Know

1) Online casinos

They offer a wide range of games you’d normally find in a physical casino but with the convenience of playing from home or anywhere.

Players can enjoy classic games like blackjack, roulette, and baccarat with realistic graphics and sounds.

iGaming software has popular live dealer casino games, where real people deal with cards, making the experience feel more authentic.

For operators, the online casino industry represents a high-potential market with diverse revenue streams.

Successful platforms require a strong game portfolio, including both classic and innovative titles from the right iGaming software providers.

2) Sports betting

Online sports betting allows players to wager on global sporting events through online sportsbook platforms.

The sports betting market is complex, requiring deep knowledge and advanced technology.

To be successful, you need to create a platform that covers sports from around the world, with constantly updating odds and betting options.

This means partnering with multiple data providers who can give you live information about sporting events.

Operators must think about creating multiple experiences for different types of sports fans, from casual viewers to serious bettors.

3) Online slots

Online slots are digital casino games where players spin virtual reels to match symbols hoping to win money by creating winning combinations across pay lines.

To create a successful slot platform, you need to work with the best game developers in the iGaming industry.

This means having a huge variety of games that appeal to different types of players.

Some players love classic fruit machine-style slots, while others want complex games with storylines and amazing graphics.

The most successful operators pay close attention to return-to-player rates– basically, how much money players can get back over time.

4) Online poker

Online poker is a digital card game in which players compete against each other and bet money on poker hands through online poker platforms and tournaments.

Starting an online poker business requires advanced computer systems that ensure fair play and prevent cheating.

You’ll want to create tournament structures that appeal to different segments of players including casual and high rollers.

5) eSports

eSports is competitive video gaming where players battle in organized tournaments for money and fame.

The best esports platforms offer detailed statistical data, live streaming of matches, and marketing approaches that directly speak to younger and tech-savvy audiences.

Success in esports betting means constantly staying ahead of trends, understanding gaming communities, and creating experiences that feel authentic to gamers.

A Brief History Of iGaming

Two decades ago, placing a bet meant visiting a casino. Today, millions of players worldwide have virtual casinos in their pockets. Let’s see how the industry has come a long way through this brief history of iGaming.

I- From Humble Beginning To A Million-Dollar Industry

It all started in year 1994 with the launch of the first online casino. Fast forward to today, the iGaming industry is worth over $88 billion, reflecting a remarkable transformation.

II- The Wildest Era Of Early Online Betting and Casinos

1994– Microgaming created the first iGaming website after Antigua and Barbuda made online casinos legal.

1996– InterCasino opens, becoming one of the first sites where people could gamble with real money.

1998– Planet Poker launches the first online poker room, giving players a new way to play poker on the Internet.

2003– 888.com becomes the first licensed online casino in the US, making over $2 billion.

III- Technological Breakthrough That Transformed The Industry

1995– Introduction Of Secure Sockets Layer (SSL) technology enhances security for online transactions. This paved the way for trust in player habits. 

2003– The advent of mobile gaming begins to take place. This led to a significant shift in player habits. 

2012– Online gaming becomes huge on phones as more people get smartphones letting them play anywhere.

IV- Major Scandal And Controversies That Shaped Regulations

2006- The UIGEA was enacted in the US, complicating the landscape for iGaming and leading to many operators exiting the market.

2011– “Black Friday” sees major poker sites shut down by the FBI, highlighting the need for regulatory clarity and player protection.

V- Major Innovations Like Live Dealers And Mobile Gaming

2013– New Jersey, Delaware, and Nevada legalize iGaming.

2013– New Jersey becomes one of the first states to legalize iGaming in the US. This introduced live dealer games that replicate the real-life casino experience.

2018– US allows to make online sports betting legal.

2020– The COVID-19 pandemic drove growth in iGaming, with many players turning to iGaming software as physical casinos close.

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The Current State Of The iGaming Industry

The online wagering (iGaming) market is getting bigger fast. In 2023, it was worth $85.62 billion, growing by 18.92% from the year before.

Experts think it will reach $97 billion in 2024 and grow to $125.6 billion by 2027. Some even say it could hit $583.69 billion by 2030, though that’s a long way off to be sure.

Several big changes are helping this growth. First, more people can now use the internet- about 64.6% of people worldwide are online.

This means more people can try iGaming, especially in countries where internet access is new to many.

Additionally, more governments are making iGaming legal and creating rules to make it safe.

New technology is making online wagering better too. Players can now play with real dealers through video streaming, making it feel like they are in a real casino.

Blockchain technology helps make payment safer and gives players new ways to put money in and take it out. iGaming companies keep adding new features to make their website more fun and trustworthy.

People’s views about iGaming are changing too. Many now see it as just another way to have fun, like playing mobile games or following fantasy sports.

This new way of thinking, better technology, and clearer rules mean more people are likely to try iGaming.

In a nutshell – the iGaming industry offers an abundant opportunities for new operators to make their mark and existing ones to expand their venture.

Major Obstacles Hindering iGaming Growth

Growing an iGaming business isn’t easy. Several major problems keep popping up, and they’re giving operators real headaches. Let’s take a look at them.

1) Following The Rules

Running an iGaming platform is like figuring out a complex maze of rules that are different in every country.

For example, what’s perfectly fine in Malta might be completely banned in the US, while being partly allowed in the UK with special conditions.

Companies have to spend millions on legal teams and special iGaming software just to comply with all the regulations.

Getting these rules wrong isn’t an option; fines can hit millions of dollars and companies can lose the right to operate overnight.

That’s why many iGaming software have dedicated teams watching out for new rules making sure everything stays legal.

2) Tricky Advertising

Advertising wagering-related content is like walking on eggshells.

Most TV channels won’t show these ads during the day, social media platforms have strict limits and some countries ban such ads completely.

This has forced companies to get creative. They are now working with game influencers who stream their play sessions. Some brands resort to surrogate advertising too.

This way they are building communities on social media without directly promoting staking and using targeted email campaigns to reach existing players.

But even these methods have to be fool-proof, i.e.:

• No targeting young people
• No making staking look like a way to make money
• No pushing people to bet more than they can afford.

3) Keeping Player Information Safe

Online wagering sites hold tons of sensitive information

We are talking about players’ full names, addresses, bank details, and even copies of their IDs.

Protecting this data isn’t just about having strong passwords- websites need encryption, constant security monitoring, and regular system checks.

They also need to have backup plans if something goes wrong. One data breach could mean millions in fines and lost trust from players.

That’s why iGaming sites often hire top cybersecurity experts and use the same security setup as major banks.

4) Making Payments Work Smoothly

When players want to deposit or withdraw money, they expect it to be as quick and easy as using Amazon.

But iGaming sites have to do a lot more checking.

First, they need to verify every player’s identity- that means checking IDs, proof of address, and sometimes even source of funds.

This process can take days and often frustrates players who want to start playing right away.

Then there’s the challenge of processing payments safely. Integration of Payment solutions with iGaming platforms is not as simple as it is with any other platform.

Sites need to work with multiple payment providers (cards, e-wallets, and bank transfers) while watching for signs of fraud and money laundering. Here’s the list of top iGaming payment solutions providers for you.

They also need backup systems in case one payment method goes down.

5) Protecting Players

Responsible wagering isn’t just about having a small “gamble responsibly” message anymore.

Modern iGaming software needs detailed systems to help prevent addiction. They track playing patterns to spot signs of problems early.

Players need easy ways to set their own limits- like how much they can deposit each month or how long they can play each day.

These websites also need cool-off features where players can block themselves from wagering for a while and these blocks need to be rock-solid.

All these features need careful programming to work smoothly without making regular players feel restricted.

The Regulatory Landscape of iGaming

The iGaming industry operates in a complex regulatory environment and it varies worldwide. Let’s have a look at how different regions approach these regulations:

In Europe, there is no single set of rules for iGaming.

The UK leads with one of the world’s strictest systems through its Gambling Commission (UKGC), enforcing the Gambling Act 2005.

This means starting a sports betting business in the UK isn’t an easy deal.

In Europe, the UK set high standards for iGaming companies.

They must thoroughly check who their players are, fight against money laundering, and help prevent staking addiction.

Germany has just started allowing online casinos and betting but with strict rules about advertising and protecting players.

Malta makes it easy for iGaming companies to operate there, which is why many choose to set up shop on the island.

The United States has a patchwork of rules. While there’s no national law completely banning iGaming, there are some federal laws that impact it.

The Wire Act stops betting across state lines and UIGEA controls money moving through illegal betting sites.

However, states can make their own rules, which is why places like New Jersey, Pennsylvania, and Michigan now have legal iGaming.

In Canada, each province controls its betting market, with Ontario recently launching its own regulated system.

Africa is seeing big growth in iGaming as more people get smartphones and internet access.

Online casinos in South Africa lead the way with regulated wagering- each province can give out licenses under a national framework.

New countries keep joining the regulated betting space, like Brazil. This means operators have to keep up with different rules in different places to stay legal and keep their players safe.

The important thing to remember is that iGaming rules can be very different depending on where you are in the world. These rules keep changing as the industry grows.

The Future of iGaming

The online gaming industry is undergoing a major transformation. Let’s deep dive into each aspect that’s shaping its future.

1) Mobile Gaming Revolution

The boom of mobile gaming is changing how people play.

a) Smart devices are letting players enjoy complex games that were once only possible on computers. For example, modern phones can now run full casino-like experiences with live dealers and 3D graphics.

b) iGaming operators are majorly investing in mobile-first approaches because:

• Over 80% of internet users now own smartphones
• Players prefer the convenience of gaming on-the-go
• Mobile payments are becoming more secure and easier to use

The shift to mobile has created new opportunities for unique game formats.

2) Virtual And Augmented Reality Integration

VR and AR are not just adding to the games- they are completely changing how we think about online gaming.

a) Virtual reality in iGaming

• Players can walk through casinos that feel incredibly real
• Players sit at the poker tables with players around the world, seeing their reactions and movements.
• Online sports betting allows you to watch games from any angle in the stadium.

b) Augmented reality in iGaming

• Turning your living room into a poker room with virtual cards and chips
• Overlay betting odds and statistics while watching live sports
• Creating mixed reality experiences where digital games blend with the real world.

The technology is getting cheaper and more accessible every year.

Soon, putting on a VR headset to play poker might feel as natural as using a smartphone today.

3) Artificial Intelligence Revolution

AI in gaming industry is becoming the invisible force that makes games smarter.

a) Personalization

• Games that learn your playing style and adjust difficulty automatically.
• Customized online casino bonuses and promotions in iGaming based on your performance.
• AI-powered game recommendations that understand what you enjoy.

b) Security and fair-play

• AI systems that can spot cheating or suspicious behavior instantly
• Algorithms that ensure random number generation is truly random
• Fraud detection is always learning new scam patterns

4) Blockchain And Cryptocurrency Integration

This technology is making iGaming more transparent and secure.

Benefits of blockchain in iGaming:

• Instant withdrawals and deposits
• Complete transparency in game outcomes
• Provably fair gaming systems
• Anonymous gaming options
• Smart contracts that automatically pay out winnings

The rise of crypto iGaming software in iGaming isn’t just about Bitcoin anymore.

New gaming-specific tokens are emerging, creating an entire ecosystem where players can earn, trade, and spend within their favorite games.

5) Regulatory Evolution

The regulatory landscape is getting more sophisticated:

Main developments:

• More countries are creating specific online gaming laws
• Player protection is becoming stronger
• Anti-money laundering measures are getting stricter
• Responsible gaming tools are becoming mandatory

This maturation of regulations is good news for players. It means safer gaming environments, better protection for money, and more trustworthy operators.

Final Thoughts

Online wagering has come a long way, transforming from a niche activity to a global phenomenon.

For iGaming operators, success is about more than just offering games.

It’s about creating seamless, engaging iGaming software that prioritizes user experience, security, and trust.

The most effective operators stay ahead by embracing advanced technologies, understanding player preferences, and maintaining strict regulatory compliance.

As the iGaming market continues to evolve, those who innovate, adapt, and put players first will lead the market.

FAQ

• Is iGaming legal?

  Online wagering laws vary from place to place. Some areas allow it, and others do not. In the U.S., a few states, like New Jersey, allow it, while other regions have different rules.

• What are iGaming companies?

  These are businesses that create websites and apps where people can gamble online. They follow strict rules to make sure everything is fair and legal.

• What is the meaning of iGaming?

  iGaming is all about betting, wagering and playing casinos on the internet. It includes online casino games, poker, and sports betting that you can play on your phone or computer.

• What are the most common payment methods in the iGaming sector?

  People can pay for iGaming using credit cards, digital wallets like PayPal, bank transfers, and even cryptocurrencies. There are lots of ways to put money into your account and cash out winnings.