How is the iGaming Market Evolving and Growing

The iGaming market is bigger and better than ever for players all over the world. The industry encompasses online casinos, sports betting, and virtual gaming. It is constantly undergoing changes thanks to a variety of reasons. Technical innovation has been a key driver in the iGaming world for years. However, changes to regulations and shifting behaviours from players are also factors in the sector’s evolution. As iGaming becomes more accessible and immersive than ever before, the scope for expansion is almost limitless.

The iGaming sector is already worth over $100 billion and could see an increase of as much as 10% in 2025. An even more remarkable indicator of the industry’s growth comes in the number of players taking part in iGaming globally. Current figures put that player pool at over 108 million, but incredibly, that figure could almost double to 210 million by the time 2025 ends1.

But just how is the industry growing, and what will this evolution mean for a sector on course to almost double its customer base in the space of a year?

Technology at its heart

In one crucial way, iGaming is no different from more traditional industries such as the automotive sector or banking, as technology has been the driver in all of these sectors evolving over the years. Industries that have been established for hundreds of years, such as banking, have struggled with how to best get to grips with technology for maximum benefit2. But that is not looking like it will be a problem for the iGaming sector.

Technology has enabled computers to handle more tasks than ever before while the proliferation of stable and reliable internet has been one of the most important evolutions in the industry. The sector is at a point where there are more choices than ever, and players demand an immersive and seamless experience every time they log on.

An equally important technical evolution so far in iGaming has been the rise of the mobile phone. For over a decade now, mobile gaming has been the dominant form of gaming for players, overtaking console gaming in 20143. Smartphones let players play from absolutely anywhere, and gaming developers have responded in kind by launching a raft of mobile-friendly platforms with thousands of games now made every year with mobile gaming at their heart.

Virtual reality and augmented reality have proven to be big hits in the iGaming world. Players can enter a wholly immersive casino setting, for example, with a VR headset where they can interact with other players and dealers in real time. AR, on the other hand, brings the virtual world into a player’s real-life environment. Digital elements are overlaid into the player’s surroundings, allowing them to interact with these elements as if they were part of the room.

The most well-known example of AR and gaming mixing to incredible success was Niantic’s 2016 title Pokémon Go. Players had to hunt their real-life environments to catch all of their favourite Pokémon characters. At the game’s height, over 200 million people around the world were playing every month4.

The truth about VR and AR, however, is they are still in their infancy in terms of the video game and iGaming sector. Pokémon Go’s success is currently an outlier rather than the norm. As time moves on, they are sure to be further integrated into games and platforms, but developers will have to work hard to ensure this is done in meaningful ways.

In the world of online casinos, the adoption of cryptocurrencies on many platforms has proved to be a success with players. Crypto is now accepted by a growing number of online platforms for both withdrawals and deposits. These currencies are underpinned by blockchain technology, which provides players with transparency and security thanks to the fact that no one entity controls the blockchain. Once a transaction is logged by it, it cannot be deleted.

Perhaps the biggest technological advancement to take iGaming to an entirely new level will come thanks to artificial intelligence. AI is going to be used in some way in every industry in the coming years and in iGaming it has the potential to provide more personalised gaming than ever. It will be a real full circle moment when AI fully digs into the iGaming industry since the AI industry owes so much of its progress to gaming5.

By learning how players play games and their preferences, AI can then offer recommendations on games to play, bonuses and promotions to suit the player, and even adapt the difficulty of games to match the player’s skill level. Security will also be enhanced as AI can be used to detect fraud quicker than human intervention and it can also be at the forefront of promoting responsible gaming practices by noticing potentially problematic gaming behaviour as well.

Changing regulations

Just like the traditional gambling industry, the more the iGaming industry grows, the more regulations it will have to contend with. These regulations are there to keep players safe, keep operators honest, and ensure gaming is as it should be.

The UK Gambling Commission oversees the iGaming sector in the UK. The Commission sets out strict licensing requirements for operators. Responsible gaming is at the heart of what it does, with player protection a key priority for the Commission6.

In the United States, online casino gaming is regulated at the state level, meaning rules vary depending on which part of the country players are in. While this is challenging for operators to ensure they have the necessary licences to operate nationwide, it could also prove to be an opportunity for growth. If regulations are relaxed in some states that have more stringent rules, then more operators will be able to compete for business. This will mean more choice for players when it comes to gaming.

A similar situation is emerging in markets such as those in Africa, Asia, and South America. Many countries in these regions don’t have regulations to keep up with the pace of change in the industry. While this might seem good for operators, it can also provide issues when it comes to rogue platforms and scams. No regulations mean operators can run fake sites, taking people’s financial details, or run games that players have no chance of winning. Regulation, when done correctly, can eradicate these issues. This, in turn, ensures players stay safe when gaming online.

Evolving player preferences

As iGaming grows, what players want from the industry will also evolve and change. A desire for more interactive and social experiences when gaming has already led to several innovations.

In online casinos, live dealer games are on the rise. These games are streamed with professional dealers leading the game just as they would in a real casino. Players can interact with the dealers in the same way they would in real life while also talking to other participants. The more authentic an experience that iGaming provides, the more likely those more inclined to head out to the casino will be to give it a try.

There has been a gamification of the iGaming sector as well which looks to continue as a trend. A perfect example is what has happened with leading online slot games. What used to be standard spinning reels which could become repetitive have now been made over with many aspects of classic video games. Narratives have been attached to many of these games as have levels giving players a sense of progress in their play.

The future of the iGaming industry

Continued growth is coming to the iGaming industry thanks to technology, regulation, and player preferences.

New markets are key to growth in any sector, and iGaming is no different. By being able to overcome any regulatory issues and work with authorities to ensure a safe and productive iGaming industry in these markets then billions of new players will be able to enjoy the same gaming experiences as seen elsewhere. Asia, Africa, and Latin America are markets yet to fully embrace iGaming, if the industry can conquer that in the coming years, then the rewards that could be reaped are almost endless.

Artificial intelligence will drive the industry to new heights and in many ways that won’t be immediately obvious. As discussed, AI can mean great things for players and how they play games as well as keeping them safe and playing responsibly. But it can also enhance customer support meaning that if things go wrong, companies can put them right again more efficiently. AI-based recommendations will likely only increase engagement and get players to try more titles on a particular platform.

Final Thoughts

The pace of change in the iGaming industry has never been slow, but in the middle of the 2020s, the evolution of the industry might be ready to go through major changes in a very short space of time.

AI will reshape the iGaming landscape and provide more of what players want and, crucially, be able to react quickly when players’ demands change again.

The industry shouldn’t shy away from regulatory issues either and by putting itself at the heart of those conversations and continuing to reward operators that play by the book and players that play responsibly then the growth opportunities could see the industry become an entirely new beast that will thrive for years to come.