April 8, 2024
iGaming into the 21st Century
In the third and final part of our history blog series, we bring things up to date with the digital age of iGaming. We’ll explore the links between modern technology, its use in the three major industries, and its fluid relationship.
We’ve looked at board games, gambling, and video games; we even dipped our toes into iGaming when we covered a little of eSports. In Part 1, we focused on the long history of traditional games and gambling and in Part 2, we focused more closely on video gaming. In this last chapter of our blog series, we’ll be taking on the world of iGaming and the union between all three industries up to the present day.
iGaming has come a long way since its inception. We’ll embark on a journey to explore the significant milestones that have shaped the ever-evolving sector and explore various facets of this dynamic world in more detail.
The emergence of online casinos and sports betting in the 1990s marked a transformative period in gambling. This digital revolution laid the foundation for the thriving industry we see today.
1994 started it all. Microgaming launched the first fully functional online casino software, and the government of Antigua and Barbuda passed the Free Trade and Processing Act. The Act allowed for the issuance of licences to companies interested in establishing online casinos. The goal was to stimulate the economy by attracting foreign investors to the island nation. The act paved the way for more online casinos to emerge. It was also the year the Liechtenstein International Lottery began, which is still ongoing today.
These pioneering developments in the 1990s set the stage for the rapid evolution of iGaming and online betting. The foundations laid during this era continue to influence the present landscape of online gambling.
Cryptologic, founded in 1995, introduced secure online payment processing systems, making it safer for players to engage in online gambling. The industry widely adopted the technology.
The following year, the Kahnawake Gaming Commission was established in Canada. It became one of the first regulatory bodies to oversee online gambling operators. InterCasino opened its virtual doors the same year, becoming one of the first online casinos to offer real money wagering. This marked a critical moment in the transition from land-based to online gambling.
The evolution of iGaming continued beyond traditional casino games. Online sports betting and lotteries quickly gained traction. In 1996, Intertops, a well-known land-based sportsbook, ventured into the online space. Punters could now place bets on live sports events or purchase lottery tickets with a few clicks.
As the internet became more accessible, the late '90s saw an explosion of online casinos, from just 15 in 1996 to over 200 in 1997. Numerous online casinos and sports betting sites emerged, attracting players and businesses worldwide. This period marked the beginning of globalisation within the iGaming industry.
By 1998, the world had its first online poker room at PlanetPoker, where players could play for real money, and Microgaming released the first jackpot video slot – CashSplash. By the end of the 90s, more than 700 online casinos were available, exceptional growth in just a few short years.
The early 2000s marked a significant turning point in the history of iGaming. It brought both opportunities and challenges. In 2003, 888.com was launched and became the first exclusively online casino in the USA.
PartyGaming launched PartyPoker in 2001, quickly gaining popularity. It contributed significantly to the poker boom of the early 2000s. By 2003, the World Series of Poker (WSOP) began to offer online satellite tournaments. Some poker players at land-based casinos dismissed the quality of players in online games. That all changed when Chris Moneymaker won entry to the 2003 WSOP by winning an online tournament. Unknown beforehand, he went on to win the entire contest, blowing his competitors out of the water. This further contributed to the rise of online poker.
The mid-2000s saw the advent of mobile iGaming, with companies like Playtech developing mobile casino platforms, setting the stage for mobile gaming's future growth. However, it would be a few years before mobile iGaming became mainstream.
The digital landscape also witnessed the resurgence of bingo, with online bingo rooms offering an exciting social gaming experience. Slots, a staple of traditional casinos, blossomed in iGaming. Live casino platforms introduced the thrill of real-time interaction with professional dealers, bridging the gap between the physical and digital gambling worlds.
iGaming in the mid to late 2000s was a pivotal period in the industry's history. During this time, several key factors contributed to the growth and evolution of the sector. The widespread availability of high-speed internet and improved online security measures played a significant role. This allowed for smoother gameplay and secure financial transactions.
Table games and live dealer casinos gained popularity, and HD streaming and broadband improvements made this option accessible to more players. This brought online players an experience closer to real brick-and-mortar casinos.
It’s around this time that iGaming branched out into various other realms of entertainment, including fantasy games, virtual sports, and eSports. Fantasy sports platforms allowed enthusiasts to create their dream teams and compete for glory. Virtual sports brought engagement to sites where fans could indulge in their passions at any time that suited them rather than around live fixtures and matches. eSports introduced a new dimension to competitive gaming with titles like League of Legends and Counter-Strike. This convergence of gaming and gambling appealed to a broader audience and cemented iGaming's status as a thriving, credible industry.
In the mid-2000s, several countries began reevaluating and adapting their gambling regulations to accommodate online platforms. The UK passed the Gambling Act 2005, which provided a regulatory framework for online gambling. The U.S. implemented the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006.
Microgaming launched the first online slot tournament in 2006, paving the way for innovative gameplay experiences. As operators sought new markets, Europe became a primary focus. This led to numerous online casinos and sports betting platforms on the continent.
The late 2000s witnessed the expansion of smartphones and mobile apps. This shift opened up new avenues. In 2008, Apple's App Store and Android Market (Google Apps) were launched, marking significant milestones in mobile app development.
Established gaming companies recognised the sector's potential and began acquiring online platforms. These factors, combined with the evolving technological landscape, changing regulations, and market dynamics, laid the foundation for the industry as we know it today. The mid to late 2000s was a period of transformation for continued innovation and growth in the years to come.
The 2010s were an evolving decade marked by significant technological advancements and regulatory changes. Mobile-first casinos focused on providing an exceptional mobile gaming experience, setting a trend that other operators would follow.
Online casinos expanded globally, with Europe leading the way. Malta and Gibraltar became hubs for licensing and regulation. The popularity of live dealer games and virtual reality casinos grew and enhanced the player experience. Bitcoin casinos also gained traction, offering a new dimension of anonymity and security.
The 2010s saw a shift in the regulatory approach towards iGaming in various countries. One of the notable developments was the legalisation of online gambling in several states within America.
Countries that previously had no gambling availability began to see the potential for their country in raising funds, attracting businesses and tourism, improving the economy, and increasing employment levels. More and more markets started looking seriously at iGaming.
The sudden rise of eSports in the 2010s also had an impact. In Part 2, we discussed the influences behind the rise in eSports and why they captured the hearts of so many gamers. Betting on eSports events was a niche but growing market. Websites quickly cottoned on to this growing source of potential and started offering odds on famous eSports tournaments, attracting a new clan of bettors.
Virtual Reality (VR) and Augmented Reality (AR) started to make their mark in the industry. NetEnt launched the VR slot game ‘Gonzo's Quest VR’ in 2018, providing players with a fully immersive gaming experience.
iGaming continued to thrive into the 2020s. The COVID-19 pandemic accelerated the shift to online gambling as brick-and-mortar casinos faced closures and new audiences sought remote entertainment and socialising via digital connections. VR casinos started transporting players to immersive virtual worlds as a form of escapism, and blockchain helped improve transparent transactions. These technologies can potentially revolutionise how we engage with iGaming in the future.
The mobile gaming market has continued to grow. Many operators have optimised their platforms for mobile devices, while more are only available on mobile. The improvements in 5G technology, high-speed broadband, and better service coverage mean that higher-quality games are available for mobile devices, no longer limiting the feature-rich games to PC only. As prices fall, the technologies used are more affordable to more people worldwide.
One of the most significant shifts since 2020 has been the increasing legalisation of online gambling in various countries and jurisdictions.
Macau has long been a prominent hub for the gambling industry, and it's also making strides in the iGaming sector. Major casino operators in Macau have been investing in integrated resorts incorporating physical and online gambling elements. With the increasing popularity of mobile gaming, Macau has seen a surge in mobile casino apps. Operators focus on user-friendly interfaces and high-quality games to attract a diverse player base.
Other places like the Philippines have also made noteworthy strides in the iGaming sector. The Philippine Amusement and Gaming Corporation (PAGCOR) has established a regulatory framework for online gaming operators. This has attracted many online casinos and sports betting platforms to develop their operations in the country.
But it’s not just Macau and the Philipines where iGaming is rising. These developments are driven by regulatory changes, technological advancements, and strategic partnerships, reshaping the landscape and presenting industry growth opportunities. However, if there is one location that is definitively the iGaming buzzword of late, it has to be… Brazil!
Brazil has been on the cusp of an iGaming revolution since 2018. Brazil represents a significant market opportunity with a large population of potential players. This South American giant, with its rich sporting culture and population of over 211 million, presents a tantalising prospect for operators seeking to expand their reach. Industry experts and operators closely watch Brazil's ongoing developments on regulation.
Brazil's journey into iGaming is closely tied to its evolving regulatory framework. The country passed the Law of the Conversion of Provisional Measure 846/2018 in December 2018, which laid the foundation for regulating sports betting. On December 30, 2023, Brazil's President signed Law No. 14,790, an amendment to Law No. 13,756/2018. This legislative update introduced regulation for 'fixed-odds betting' within the country, permitting entities to manage fixed-odds betting activities on sports events and online gaming. These operations are subject to obtaining approval from the Ministry of Finance. Since then, Brazil has been working diligently on finalising its comprehensive legal framework. The country has taken a measured approach, ensuring that regulations prioritise player protection, responsible gaming, and fair competition.
The potential market size in Brazil is staggering. The demand for betting on sporting events is expected to be substantial. Moreover, the growing middle class and increasing internet penetration contribute to a thriving online gaming ecosystem.
Understanding Brazilian culture is paramount for success. The vibrant and diverse culture is characterised by a passion for sports, festivals, and social gatherings. Operators that tailor their offerings by working with specialised teams of providers that create bespoke content tailored to the Brazilian market will likely gain a competitive edge.
Brazil's entry into iGaming is an unfolding saga of immense potential and excitement. And it’s not just in Brazil that we see changes; similar developments across other Latin American (Latam) countries are also underway. As we look ahead, it's clear that Brazil's diverse and passionate nation is poised to become a significant player in the global iGaming arena. Find out more about iGaming in Brazil in our blogs, Brazilian iGaming Boom, Big Boost for Brazil's iGaming & Sports Betting Power, and Brazil's Bright Future for Betting & iGaming the New Era of Regulations.
So where is iGaming now, and what is the future?
One sign of the progress made within iGaming is the staggering number of events and awards. The huge iGaming market is big business, and multiple global events and awards occur annually. They are the perfect chance for people to connect with others in the industry and hear about the latest developments and upcoming changes and innovations. Only the very biggest companies have the time, people, and money to attend every such event, but companies can significantly benefit by focusing on the key events and markets. Recognition by peers in the business by being nominated for an award is a mark of success and achievement. It’s something all business leaders strive for.
Marketing, in all its guises, is an integral part of iGaming. Creative marketing teams can make the difference between a hit and a miss. Country-specific promotions are just as crucial as player-specific promotions. Seasonal offers, event-related tournaments, loyalty reward schemes, and more elevate the best sites. More prominent brands often have exclusives or branded games to set them apart.
Online sportsbooks partner with major sports leagues, teams, and players. Numerous sports leagues worldwide are sponsored by iGaming operators, showcasing the growing acceptance and integration of sports betting within mainstream sports. It is also becoming increasingly popular for more prominent brands to have an ambassador, such as F12 Mania’s ambassador Falcão.
What makes a captivating modern iGaming platform? Most players would expect the basics of any self-respecting site: a basic casino, live casino, and sports betting combo. Of course, there are huge differences between basic platforms that offer a few hundred of the same old slots with a couple of live table games and generic sports action compared to the big names providing multiple features. With the current market offering so many choices, what must platforms do to stand out and succeed?
Those who have grown up with mobile technology aren’t content to log on, place a bet, or spin a simple reel. They want various slots, from retro three-reel games to progressive jackpot slots, cascading reels, games with many mods and bonus features, and more.
The same goes for table games and live casinos. While it’s good to have simple poker, blackjack and roulette capabilities, players want to explore newer versions with a twist, exciting tournaments, and unusual games they’ve never played. Live casino games must be beautifully presented with visually dazzling high-definition streams, overseen by professional and experienced dealers that ensure the highest quality at all times. In addition, the capacity for multiple tables and games to be played at once is a welcome addition to the fast-paced live casino world we see around us.
As for sports, why bet on a basic site when you can enjoy live streaming, in-game betting and odds, and unusual wagers tied in with enticing promos elsewhere? Sites need a variety of choices and up-to-the-minute innovation if they are to succeed in the competitive iGaming market. Learn more about setting up a successful sportsbook in our blog, Choosing a Sportsbook Provider: Top 20 Tips for Success in 2023 – which is still relevant in 2024!
Lotteries hold a significant and enduring appeal in the iGaming industry, and this global fascination can be attributed to several key factors. Lotteries are among the most accessible forms of gambling. They don't require specific skills or knowledge, making them attractive to a broad audience.
They’re easy to understand. Players select numbers, purchase a ticket, and await the drawing results. This simplicity ensures that even newcomers to iGaming can quickly grasp the concept and participate. Lotteries offer the tantalising prospect of life-changing jackpots. The allure of winning a vast sum of money with a small investment. This dream of financial freedom keeps players coming back for more.
With the advent of online lottery platforms, players can now access lotteries worldwide. This global reach expands the potential player base, as individuals can participate in international lotteries that offer even more substantial jackpots. Online lottery platforms make it incredibly convenient for players to participate.
In the iGaming industry, lotteries serve as an evergreen source of entertainment that caters to a wide range of players. Find out more about the potential of lottery in our blogs, How to Grow Your Casino or Sportsbook With Lottery, and How to Create a Winning Lottery Brand.
Fantasy sports began life as paper and pen games that sports enthusiasts enjoyed and played through the mail. The anticipation of waiting for your team’s results to see if your managerial skills had won you the points appealed to all ages. Fantasy sports and fantasy pools have experienced a recent surge in popularity within the iGaming industry.
Fantasy sports offer a unique blend of competition and engagement. Usually, players create virtual teams by selecting real-life athletes, moves or other options. Unlike traditional sports betting, where outcomes are often based on chance, fantasy sports require skill and strategy. Participants must analyse player statistics, study matchups, and make informed decisions.
Many fantasy sports leagues span a season, creating a long-term commitment for players. This sustained engagement keeps enthusiasts connected to their favourite sports and teams throughout the year. Fantasy sports often involve joining leagues with friends, colleagues, or enthusiasts. This social dimension enhances the overall experience, as participants can discuss strategies and engage in friendly rivalries. There is a vast social appeal to fantasy sports.
Fantasy sports encompass many sports, from football, cricket, and basketball to other options like golf. This diversity allows players to explore different interests and knowledge areas. As well as that, things have moved on from generic managerial games with all sorts of unique and fun fantasy games to try.
iGaming platforms provide real-time updates on player performance and scores. This instant gratification keeps players engaged and invested in the outcomes of their teams. Players are also more likely to stay on a platform and enjoy the same sport in a themed slot or make a bet in the sportsbook. They also boost retention and engagement, with players returning regularly to check their results. Learn how to Expand Your iGaming Business Profit, Popularity & Potential with Fantasy.
Virtual sports act more like a traditional sportsbook. Regular games, matches, and tournaments can run continually 24 hours a day, 365 days a year. It is ideal for fans of sports that have short-lived seasons, such as the NFL. They’re also appealing to those who have a passion for one particular sport or have unusual social hours as, unlike real-life games, there’s always a virtual football match or race happening somewhere, no matter what time of night or day!
If there’s one faction of iGaming that encapsulates the fluidity of all three industries, it’s eSports. As we mentioned in Part 2, They’re no longer a separate entity for gamers. The world of eSports is now seamlessly integrated and fully embedded in iGaming. As gaming has become more mainstream and eSports has risen in popularity, it has become a big-money industry.
eSports foster a sense of community and belonging among gamers worldwide. Players from diverse backgrounds come together to celebrate their shared passion. High-speed internet, streaming platforms, and user-friendly gaming interfaces have opened the world of eSports to a global audience. There are well-organized leagues and tournaments with lucrative prize pools and sponsorships. This legitimacy has drawn the attention of not only gamers but also investors.
The convergence of eSports and gambling has been a symbiotic relationship. Major brands and companies have recognised the potential of eSports. Players and enthusiasts often double as content creators. They stream their gameplay, share tips and strategies, and engage with their audience. This promotes the games themselves and creates a thriving online community. The crossover between gambling and gaming was inevitable; this fusion has created a dynamic and engaging harmony that will likely continue thriving. If you missed the link in Part 2 and want to learn more about eSports, read our blog, eSports Epic Rise to Success.
Bingo has moved on from the days of pensioners, church halls, holiday parks and community centres. Bingo has always had a strong social aspect to it. Online bingo platforms have incorporated social features like chat rooms. This fosters a sense of community, enhancing the overall gaming experience.
iGaming operators often offer enticing prizes, including progressive jackpots that can reach substantial sums. Games feature captivating themes, graphics, and animations. These elements make the gameplay visually appealing, catering to a broad audience. Bingo sites began primarily as stand-alone platforms, but savvy operators have caught on to the global appeal, with more and more now providing dedicated bingo rooms alongside sports betting and casino.
iGaming didn't stop at gambling; it’s about entertainment. Live gameshows, hosted by charismatic presenters, bring a dose of excitement to the screen. Players can participate in quiz-style games and win prizes, blurring the line between iGaming and entertainment. Fans of television quiz shows are drawn to the bright and colourful games with their friendly presenters who give players a taste of appearing on their favourite quiz show or playing giant, 3D versions of their favourite board games from childhood.
As with eSports, the merging of gaming and gambling grows more robust with increasing options at online casinos that resemble traditional video games, no longer limited to three or five-reel slots. Players can try their hand at old-school shoot ‘em up type games or battle invading flying saucers to gain points and grab that cash prize.
Players can even try online scratchcards for a quick game that mimics real-life versions, and in some locations, free-to-play games are permitted for players to try new options before playing with real money.
If anything defines the future of iGaming, it is gamification and personification. They play pivotal roles in the success of iGaming platforms, but what exactly are they?
Gamification integrates game-like features into non-gaming contexts, like high scores, leaderboards, and tournaments. It's a powerful tool for enhancing the iGaming experience. Here's why: gamification introduces challenges, rewards, and achievements that keep players engaged. This is vital in an industry where user retention is critical. By providing players with a sense of progress and accomplishment, iGaming platforms can foster long-term loyalty and boost player acquisition, engagement and retention. All those elements that make video games so powerful and engrossing to gamers are applied to iGaming. Here, more than anywhere else, we see that intertwined connection between gaming and iGaming.
Games are inherently entertaining, and by infusing iGaming with elements like leaderboards, quests, or mini-games, platforms create a more enjoyable player experience. This can transform routine gambling into an exciting adventure. Skill-based games within iGaming can attract a broader audience. Players who feel they can influence the outcome through their abilities are more likely to participate. It allows iGaming platforms to tailor the experience to individual preferences, like suggesting games or offers based on a player's behaviour, making the interaction more personal and appealing.
Personification in iGaming involves giving virtual elements human-like traits or personalities. Players form emotional connections when they perceive aspects within the game as characters. This could be with a dealer, a mascot, or even an AI assistant. These connections enhance the gaming experience. It can help establish a strong brand identity. Memorable characters or avatars become synonymous with the platform, making it stand out in a competitive market.
Gamification and personification are essential because they elevate the iGaming experience beyond mere betting. They engage players, enhance personalisation, and create lasting connections. Incorporating these elements thoughtfully can differentiate a platform in a crowded market, making it more appealing to players and ultimately contributing to its success.
In the ever-evolving landscape of iGaming, one trend has emerged triumphant – mobile iGaming. With each passing day, it continues to captivate players worldwide, reshaping how we experience online entertainment.
Mobile iGaming's meteoric rise can be attributed to its unparalleled accessibility. It brings the thrill of the casino, the excitement of sports betting, and the allure of virtual worlds directly to the palm of your hand. The convenience is undeniable, enabling players to indulge in their favourite games whenever and wherever they choose.
Advancements in technology have been pivotal in this revolution. The advent of 5G networks, powerful processors, and stunning graphics and audio have transformed mobile devices into gaming powerhouses. Gamblers can now enjoy high-quality, real-time gameplay that rivals traditional desktop experiences.
The appeal of mobile iGaming transcends borders. From the bustling streets of London to the vibrant beaches of Brazil, players from diverse backgrounds are joining the mobile gaming revolution. It's a global phenomenon that bridges cultural gaps and unites enthusiasts worldwide.
Africa is the perfect example. The massive population of primarily young, tech-savvy people has seen a recent surge in mobile gaming. Operators, though, must ensure that their platforms meet the needs of Africans and the technical capabilities of the continent. Mobile iGaming that can be enjoyed across a wide range of high and low-end devices over varying networks is essential. Any potential new operators would do well to investigate and go with an omnichannel platform solution that integrates retail, online, and mobile gaming, such as the specialist African platform solution WA.Africa, which is designed specifically for African countries.
As we look ahead, it's evident that mobile iGaming is here to stay. Its seamless integration into our daily lives and constant innovation promises an exciting future for players and the industry. Its popularity is an exhilarating journey into the future of entertainment. It's a testament to the industry's ability to adapt, innovate, and cater to the ever-changing desires of players worldwide.
In the ever-evolving iGaming landscape, certain buzzwords have been making waves: cryptocurrency, NFTs (Non-Fungible Tokens), and blockchain technology. These innovations are quickly gaining popularity, reshaping the industry as we know it.
NFTs offer unique in-game assets, skins, and collectables that players can own. This uniqueness and ownership add an exciting layer and open the door to new gaming experiences. Players relish the idea of actual ownership of their in-game items.
Blockchain technology ensures transparent and secure transactions. It enhances trust between players and operators by providing an immutable ledger of all gaming activities. Moreover, blockchain's decentralised nature reduces fraud, making the industry fairer and safer.
Cryptocurrency has emerged as a formidable force. Its borderless nature and enhanced security features are revolutionising how we play. The blending of cryptocurrency and iGaming has resulted in one of the most significant stand-out iGaming innovations – crash games. Crash games run solely on crypto and are fast-paced and easy to play. Join a game and bet on a multiplier, then win, cash out, or ‘crash’ (lose) by not cashing out in time. Simple!
Cryptocurrency, NFTs, and blockchain are steering the industry towards a more exciting and secure future. As we move forward, expect more innovative cryptocurrency applications, making iGaming an even more thrilling and accessible experience for all. Embracing these technologies is not just a trend; it's a pivotal step towards transforming the way we game forever.
In the dynamic iGaming realm, three technological acronyms have been making recent waves – VR (virtual reality), AR (augmented reality), and AI (artificial intelligence). These cutting-edge technologies have garnered substantial attention for their transformative potential.
Virtual reality has taken players on immersive journeys, transporting them to digital realms indistinguishable from reality. From realistic casino experiences to interactive sports betting, VR has amplified the thrill of iGaming. Players can now step into a virtual casino, engage with dealers, and savour the authenticity of a real-world casino, all from the comfort of their homes.
Augmented reality seamlessly blends the virtual and physical worlds. With AR, players can enhance their surroundings with digital overlays, creating a captivating fusion of real and digital experiences. This technology has elevated iGaming by adding layers of interactivity and engagement, making games more appealing and immersive.
Artificial intelligence has revolutionised player experiences. AI is the driving force behind personalised gaming experiences. AI algorithms analyse player behaviour to tailor games and offers, enhancing user engagement. It also plays a pivotal role in fraud detection and responsible gaming, ensuring a safe and fair environment. AI-powered chatbots provide instant customer support, ensuring a seamless gaming experience.
The popularity of these technologies proves the industry's commitment to innovation. Players are drawn to the enhanced realism and interactivity they offer. We anticipate further integration of VR, AR, and AI as we move forward, setting the stage for an even more thrilling iGaming future.
The historical journey of iGaming is a testament to the seamless integration of gaming and gambling in the digital age. From the humble beginnings of ancient dice games several thousands of years ago to the wondrous digital iGaming landscape with virtual reality adventures and AI-driven experiences, as the iGaming world continues to evolve, iGaming offers endless possibilities for entertainment and innovation.
As we look ahead, the convergence of technology and gaming is set to shape the future of this vibrant industry. iGaming will continue to adapt to new technologies, regulations, and player preferences, ensuring its place as a dynamic and engaging form of entertainment.
As we journey through the rich tapestry of gaming and gambling's past, it's important to remember that with the thrill and excitement of these activities comes a responsibility to engage in them wisely and sustainably, underscoring the ever-relevant creed of our times: to always approach gaming and gambling with mindfulness and a commitment to responsible practices.
Read An Evolutionary History of Gaming, Gambling & iGaming – Part 1 (the origins and ancient history of gaming and gambling) and Part 2 (computer gaming development).
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