What is iGaming? Key Insights and Trends for Success in the iGaming Industry

Gambling as a form of entertainment dates back to prehistoric times. It has evolved significantly over time, expanding into various societies and taking on different forms. With the advent and popularity of the Internet in the 1990s and early 2000s, gambling made its way online. Today, it is a billion-dollar industry accessible to millions of people worldwide, served by several online gambling businesses. 

In this guide, we will take a deep dive into the dynamic history of the iGaming sector, analyze the market trend and growth prospects, and highlight some of the important things to know about the industry. 

What Is iGaming?

The iGaming industry is incredibly diverse. The term iGaming encompasses a wide range of activities from wagering on online slots to betting on the outcome of a game of football. All of such events fall under the large umbrella of iGaming as long as they’re carried out online through digital platforms.

iGaming is the act of engaging in wager-based games through online platforms. This term encompasses a broad spectrum of activities including but not limited to, online sports betting, poker, casino games, and lottery. The “i” in iGaming refers to the internet. However, it could also be referred to as eGaming, which means electronic gaming or simply online gaming. In either case, the term refers to wager-based games that players can access from their digital devices such as mobile phones, tablets, and computers over the internet. 

It is worth noting that the term iGaming isn’t quite the same as “gambling”. While gambling refers to any form of betting either online, or in traditional brick-and-mortar casinos, iGaming is exclusively digital, referring only to betting done on computers and mobile devices. Also, iGaming may include free-to-play games and other forms of online gaming that are not necessarily considered gambling such as sweepstakes and lotteries. 

History of iGaming

iGaming is an off-shoot of the traditional gambling industry, whose history dates back several centuries. While popular gambling games have existed in various forms throughout history, the first known casino (the Ridotto) was opened officially in 1638 in Venice, Italy. 

Until about three decades ago, the only way to place a bet was to visit a physical casino, horse racing track, poker room, or studio. The movement that culminated in the iGaming industry today began in the 1990s with telephone betting. Bookmakers introduced an option that allowed people to place bets over the phone while a sports event was in progress. This introduced the concept of remote gambling without visiting a physical location, which was quickly adopted as the Internet gradually gained popularity. 

In 1994, Microgaming developed the first online casino software, taking gambling online. This happened the same year Antigua and Barbuda made online casinos legal. Two years later, Intercasino, one of the first online iGaming websites was launched. In 1998, Planet Poker was launched, becoming the first online poker room, for playing poker on the Internet.

Evolution of the iGaming Industry

The evolution of the online gaming industry has always been linked to technological advancements, especially related to the internet. For instance, the invention of Secure Sockets Layer (SSL) technology in 1995 was one of the factors that made secure online transactions possible, paving the way for players to seamlessly deposit and withdraw money online. 

Mobile devices became popular in the early 2000s. This led to a significant change in player habits as more people gradually began to access the internet via their mobile devices instead of computers. By 2012, the mobile gaming revolution was in full swing, as more people adopted smartphones, which allowed them to play games anywhere and everywhere. 

iGaming Market Size and Growth Prospects

In the past few decades, iGaming has evolved into a vibrant and booming industry. According to a report by Grand View Research, the global online gambling market size was valued at $ 63.53 billion in 2022. It is expected to grow at a compound annual growth rate (CAGR) of 11.7% from 2020 to 2027. 

According to a more recent report by Mordor Intelligence, the size of the online gambling market was estimated to be worth $103.00 billion in 2025. This report predicts a Cumulative Annual Growth rate of 10.44%, leading to a projected market size of $169.22 billion by 2030. While land-based casinos are still popular, the convenience, variety, and innovation of iGaming are fueling its growth compared to the traditional gambling industry. 

Although the online gambling market is segmented into different categories including poker, casinos, bingo, sports betting, and lottery, the sports betting segment remains the most dominant in the market, accounting for approximately 49% of the total revenue generated in the industry. 

High internet penetration, changes in legislation, and partnerships between online gambling software developers and operators to build intuitive and mobile-friendly UI gaming solutions have aided the expansion of the market. These factors will likely continue to fuel the growth of the industry in the coming years. 

Impact of Software Providers on the iGaming Sector

Software providers are the indispensable pillars supporting the continuous expansion of iGaming. By pioneering cutting-edge technologies and innovative solutions, they help shape the modern face of the gambling market, whether it’s developing the first online casino website or integrating emerging technologies like blockchain and cryptocurrency into their platforms. Here’s a look at the benefits these software suppliers bring to the iGaming industry.

Tech Stack Upgrade

The choice of tech stack is fundamental to the success of any iGaming platform. Software experts help platform operators upgrade their tech stacks, optimizing performance, user experience, and scalability with new tech solutions. Some of the more recent technical upgrades being experienced in the industry include the introduction of AI, AR, VR, and Blockchain technology into iGaming software development. 

Establishing a Presence in New Markets

From regulated sports betting in the U.S. to the booming Esports market in Asia, software providers can assist iGaming companies in establishing a presence in new and promising markets. They also follow laid-down guidelines to help online gambling operators conform to local regulations and cultural nuances.

Expanding Product Offerings

Whether it’s adding the latest online slot game or integrating a new sports league into the betting lineup, software development agencies help iGaming platforms diversify and expand their offering. This keeps them fresh and appealing to users. 

Increasing the User Base

By providing engaging iGaming entertainment to players, software developers help iGaming companies attract and retain a larger user base. This is responsible for the growth of the industry, driving revenue and growing popularity of the iGaming sector. The engaging game designs and interactive features offered by software developers complete the gaming experience for players and attract new users. 

Increasing the Flexibility of iGaming Platforms

Software companies enable iGaming businesses to increase the flexibility of their platforms. They offer solutions designed to adapt to the diverse needs and preferences of users, from desktop to mobile gaming.

Forms of iGaming

As mentioned above, iGaming is an umbrella term for different forms of online gambling platforms. It’s important to understand the broad scope and diversity of this industry by recognizing the different forms it can take. Here are some of the most popular online gaming options available for players to explore. 

Online Casinos

An online casino is one of the most popular sectors of the iGaming industry. These platforms host a wide array of traditional games (the type you’ll typically find in a brick-and-mortar casino) but in a virtual gaming environment. Many online casinos provide an extensive collection of games including slots, table games, instant win games, bingo, and online poker.

Some casinos may also offer live dealer games for an immersive gaming experience. The backbone of these platforms is robust online casino software, which ensures smooth operation and an engaging user experience. For more information on this type of gambling, read our guide on how to start a casino app. 

Sweepstakes Casinos

Sweepstakes casinos are similar to regular online casinos in the type and variety of games they offer. These platforms allow players to play casino-style games without real money gambling. Because of how they’re structured, sweepstakes are not considered gambling even though you can win real money and other rewards by redeeming virtual tokens for real gifts. As a result, they’re legally permitted in many locations including places where traditional online casinos are banned.

Sweepstakes software plays a crucial role in powering these platforms, providing the necessary tools and systems to ensure a seamless and engaging user experience. To learn more about how to start this type of iGaming platform, read our guide on how to start a sweepstakes casino. 

Social Casinos

Social casinos are similar to sweepstakes sites but without the promise of real money prizes. This type of iGaming platform allows players to enjoy slots, table games, bingo, and lottery games for free without spending any money. Instead of cash, players access these games with virtual currency. Since they do not get to win real money, the main value of social casinos to players is the entertainment these sites offer.

Platforms in the social casino market also have social features such as leaderboards, tournaments, chat rooms, and so on that allow players to interact with others even as they enjoy the pleasure of playing online casino games. The role of social casino development is crucial in creating engaging and interactive platforms that captivate users and enhance their gaming experience. 

Online Sports Betting

Sports betting gambling sites or apps, powered by advanced sports betting software, provide an interface for users to engage in online betting. The platforms offer betting on a diverse range of sports and leagues globally. The odds types can vary, and data providers supply real-time information to keep bettors updated.

Key to their success is customization – the ability for a user to personalize their experience, and a well-designed UX/UI that ensures easy navigation and engagement. Security is crucial, especially with real-time transactions, and payment options need to be diverse for global accessibility. Lastly, each platform must comply with different legal restrictions based on their operating regions

Esports Betting

Esports is one of the fastest-growing niches of the iGaming industry that has been attracting a large audience in recent years. In Esports betting, professional gamers compete against each other in standalone video game matches or tournaments, and people get to place bets on the outcome of these contests, like they’re betting on actual sports matches.

One of the most popular sectors within this space is Counter-Strike gambling platforms, where players wager skins, in-game items, or real money on match outcomes, roulette-style games, case openings, and other betting formats. The innovation in this area is driven by advanced esports software, which ensures seamless betting experiences and enhances user engagement.

Online Lotteries

Online lottery apps, powered by advanced online lottery software, offer players an accessible way to participate in various lottery games. Lottery operators must ensure a seamless UX/UI design to simplify ticket purchasing and keep players engaged. Security is also paramount, given the nature of transactions, and diverse payment options accommodate a wider audience. As with all iGaming software, compliance with law restrictions based on geographical operations is crucial.

Other

Other forms of iGaming apps include virtual sports betting platforms, which simulate sporting events and allow betting on the outcomes. Bingo and instant win game apps also fall under the iGaming umbrella, providing users with quick, engaging gaming experiences. There are also dedicated poker apps, offering a variety of poker games and tournaments for players of all skill levels. 

iGaming Regulation and Licensing

In the iGaming industry, obtaining a license isn’t just another bureaucratic step – it’s an essential part of operating a legal, safe, and secure business. Although the term ‘iGaming’ refers to all types of betting on the internet, the legality of these operations can vary greatly depending on the location and jurisdiction. To ensure compliance and trust, operators often seek the best gaming licenses available to enhance their credibility and appeal to a broader audience.

Key Jurisdictions and Licensing Requirements

Although one of the largest markets for iGaming in the world, the legislative landscape in the United States isn’t exactly straightforward. In many US states, each state’s gaming commission oversees the regulation of online gambling, from lotteries and bingo to poker and sports betting. Each commission has its own set of rules and standards to ensure the integrity of gaming operations within its territory.

On the other side of the pond, the UK Gambling Commission regulates all forms of gambling in the UK. It ensures that every operator adheres to the principles of fair play, protection of vulnerable people, and prevention of crime related to gambling. Due to the high standards of the UK Gambling Commission, a license issued by this commission is accepted across several other international jurisdictions, especially places where a local license isn’t required. 

Another popular online gaming license is the permit issued by the Malta Gaming Authority (MGA). Many online gambling companies operating within and outside the EU prefer this license due to the country’s favorable taxation laws and comprehensive regulatory framework.

There are several other notable jurisdictions worth exploring. To learn more about them, check out our in-depth guides:

• Curacao gaming license
• Tobique gaming license
• Anjouan gaming license
• Isle of Man gambling license
• Kahnawake gaming license
• Gibraltar gaming license
• Alderney gaming license

Compliance Challenges

One of the significant challenges for iGaming companies is navigating this maze of regulations across the different jurisdictions where they operate. The rules vary from one location to the other and with no globally accepted standards, operators trying to enter a new iGaming market have to learn all the rules unique to the market they’re venturing into. 

Compliance can also be challenging from a technical point of view. As part of measures to maintain the integrity of their ecosystem, regulatory authorities require operators to carry out age verification, ID verification, and KYC. Operators also need to implement robust security measures and advanced features to prevent and detect money laundering, terrorism financing, and other crimes. These are difficult to execute, but a crucial requirement to obtain a license in many jurisdictions. 

Marketing Strategies for iGaming Success

The iGaming market is quite saturated. In any sector of the industry you’re operating, whether as a software provider or platform operator, standing out from the crowd requires significant effort. Trying out different marketing strategies is essential to businesses looking to beat the competition. Here are a few marketing strategies you may consider exploring if you’re considering how to start an online casino business.  

• Display ads: It involves creating visual ads including images, banners, and videos to be displayed on various platforms to promote your iGaming service. 
• In-platform marketing: This refers to marketing done within your existing platform to promote retention, keep players engaged, and increase spending. It can come in the form of general promotions, personalized rewards, gamification elements, VIP rewards, and so on.  
• Affiliate marketing: iGaming businesses often enlist the services of affiliate marketers who will promote their platform or services on their own website, social media, and other channels for a referral percentage. This strategy can boost traffic without relying on a big marketing budget since affiliates only get a commission for their services. 
• SEO or Paid Search ads: SEO involves optimizing your website with content that has relevant keywords to make it discoverable organically. However, you can also help things along by signing up for a paid search ad, which puts you at the top of relevant search results for a token. 
• Social media and email marketing: You can leverage social media or emails to deliver ads and marketing materials to potential customers. 

Running a Successful iGaming Business

The iGaming industry presents a wealth of opportunities for entrepreneurs looking to invest in the industry in one way or another. First, you should research your market as this is arguably the biggest secret to business success. This involves understanding the demographics you intend to serve with your business and their. This will determine how your business will be structured and how to market to them effectively.

Next, you need to find a unique selling point that sets you apart from the competition. This can be tricky in an industry as saturated as iGaming. But figuring out how to carve out your own space, is the secret to attracting and retaining as many players as possible. 

Finally, develop a strategic business plan for your iGaming business and work with it. This will highlight all the marketing strategies you intend to leverage, your plans for player acquisition, and a clear plan for growing your business. For more tips about running a successful gambling business, check out our guide on how to start a gambling website. 

Regional iGaming Markets

The iGaming market is global, but it varies from one region to another. There are peculiarities for each location, including differences in the most popular form of gambling, market dynamics, and competition. Before embarking on an iGaming venture anywhere, you must understand the climate and how to approach doing business there. Here’s an overview of three of the major markets for iGaming in the world. 

Sports Betting in the American Market

If you’re looking to venture into the American market, then you should consider learning how to start a sportsbook. Sports betting is the most popular iGaming option in the US, with a projected volume of over $100 billion in 2025. The primary reason for this is the legal status of sports betting compared to traditional online casino gaming. 

Online Casino Opportunities in Europe

Europe remains the most mature sports betting market in the world. Gambling has been legalized in various European countries for decades with robust regulatory frameworks and well-established regulatory agencies (including some of the most popular in the world). 

Football is Europe’s main export as far as the gambling market is concerned. Some of the top leagues in the world, including the Premier League, Spanish La Liga, Serie A, and Bundesliga, provide numerous betting opportunities to players.

Other Regional Markets 

Asia is one of the fastest-growing markets in the online gambling industry, with an active market backed by emerging technologies. Esports is also on the rise in this region, with India, South Korea, and Japan leading the charge. 

The Latin American market is active as well, although gambling activities in the region are almost entirely restricted to sports betting. Football remains the biggest sports betting option in Brazil and Argentina, accounting for up to 80% of the betting revenue in South America’s biggest markets.

Then there’s the African gambling market, which has been growing rapidly in recent years thanks to favorable legislation, improved mobile accessibility, and a love for football sports betting. Nigeria, Kenya, and South Africa are the biggest markets, accounting for up to 80% of betting revenue from this region. 

Overview of Various iGaming Apps: Revolutionizing the Online Gambling Experience

As the online gambling industry continues to evolve and expand, several iGaming apps have emerged as market leaders, transforming the gaming experience with their unique offerings and innovative features. Here, we look at such prominent iGaming apps, each leading the way in their respective domain.

DraftKings – Reinventing Sports Wagering

As one of the frontrunners in the online sports wagering scene, DraftKings is making waves with its comprehensive coverage of various sports and leagues globally. It offers users the chance to bet on their favorite sporting events with real-time updates and competitive odds.

PokerStars – Bringing the Casino to Your Device

PokerStars, a dominant name in the online casino industry, offers a vast range of card games, especially poker, blackjack, roulette, and other skill-based games. Its key selling point is the live casino feature that recreates the atmosphere of land-based casinos, delivering a thrilling, real-time gambling experience using video streaming technology.

Bet365 – A Comprehensive Betting Platform

Bet365 is a multi-faceted platform that caters to all forms of online wagering, from sports betting to casino games and even bingo. Its exhaustive selection of betting options, easy-to-navigate interface, and live-streaming services make it a favorite among gambling operators and users alike. Bet365 exemplifies how diversity and accessibility can boost user engagement in the iGaming world.

iGaming Events and Conferences

To genuinely flourish in this swiftly progressing industry, participating in its biggest events is an indispensable strategy. Active participation in iGaming events is a fundamental requirement to help keep the latest technological progress being made in the industry. Below is a list of some of the biggest events in the iGaming world. 

ICE London (International Casino Exhibition)

ICE London is typically one of the first events in a calendar year. It is organized by Clarion Events, and welcomes thousands of attendees from all over the world, in fact, ICE London is one of the biggest iGaming industry events globally. The event features a comprehensive program tailored to offer a 360-degree perspective of the industry. 

iGB Live!

The iGB Live! Event is a significant highlight in the iGaming calendar. Organized by iGaming Business, a respected name in the provision of business intelligence for the iGaming industry, iGB Live! Continues to set a precedent in bridging the gap between operators, affiliates, and suppliers. It has a robust program packed with insightful discussions, cutting-edge product showcases, and thought-provoking presentations, the industry is expected to receive a significant boost in innovation and growth.

Global Gaming Expo (G2E)

Global Gaming Expo (G2E), organized by the American Gaming Association (AGA) in partnership with Reed Exhibitions, is one of the most significant iGaming industry events on the calendar. The event serves as an essential hub for both established and emerging professionals in the industry. With a previous record of over 27,000 attendees, G2E is not just an event – it’s a vibrant ecosystem that brings together the most innovative and influential minds in the iGaming sector.

SiGMA (Summit of iGaming)

SiGMA, the Summit of iGaming, is an unmissable event organized by SiGMA Group, a Malta-based company known for its significant contributions to the world of iGaming, fintech, and blockchain. Each year, SiGMA brings together a crowd of over 15,000 attendees from across the globe, offering a unique platform for learning, networking, and showcasing the latest in the iGaming industry.

Technology and Innovation in iGaming

The iGaming industry is a melting pot of technology, innovation, and user experience design. Some of the biggest technological trends currently shaping the industry include:

Blockchain Technology 

Operators are embracing blockchain and cryptocurrencies because it allows them to offer an anonymous, secure, and efficient payment option to users. In the future, blockchain may become the underlying technology for casino platforms, promoting transparency and security in the industry. 

Gamification

Gamification techniques, such as leaderboards, achievement systems, and reward programs, tap into players’ intrinsic desires for competition, achievement, and rewards. Incorporating gamification features into gambling platforms motivates players to do more and can increase retention.   

Social Media Integration

Gambling platforms with social media integration foster the creation of active online communities where players can interact, share experiences, and compete against each other. This can go a long way in enhancing player engagement and retention. Social casinos and sweepstakes sites follow this model, but they could also be useful for online casinos and sports betting platforms. 

Future of iGaming

The iGaming industry is the arm of the gambling industry that is most connected to technology and growth. The advent of the internet and advancements in mobile technology are the main factors that allowed the evolution of the industry in the first place. 

As we look toward the future, the industry seems to be perfectly positioned to take advantage of emerging technologies such as Blockchain, Artificial Intelligence, Augmented Reality, and Virtual Reality. For platforms that leverage them, all of these technologies will combine to create fully immersive experiences while promoting security and convenient access for players. 

Final Thoughts – Unleashing the Power of iGaming with CrustLab

As we’ve uncovered in this comprehensive look into the iGaming industry, it is a massive industry with an undeniable potential for success. However, to truly tap into the vast opportunities this industry provides, gaming businesses need to work with an experienced and capable partner. CrustLab provides all the skills and expertise needed to ensure that your iGaming business thrives in any market. The future of iGaming is filled with excitement, growth, and potential. Don’t just be a spectator – be a part of it. Contact us today to learn more.