How Has iGaming Technology Caused a Boom in the Industry?

Content Team 1 year ago
How Has iGaming Technology Caused a Boom in the Industry?

The 21st century so far has been marked by the rapid development of technologies that have affected many industry sectors. One of them is definitely iGaming. Online gambling is now more accessible than ever thanks to a fast, dependable internet connection and the most recent iGaming technology advancements.

Despite the fact that the gaming sector’s market value increased to 155.89 billion dollars in 2020 (Clement, 2021), the current casino industry figures reveal that the world of iGaming is developing further.

In this article, I will explain what the iGaming industry is all about and which technological innovations have the most credit for the current and future sector development.

What is iGaming?

Before we dive into the topic, let’s take a quick reminder of what iGaming actually is. The iGaming industry usually refers to any type of online casino gambling and the game software that supports it. It’s an umbrella term for all types of online betting, even if there’s no actual gaming software involved. Therefore, this includes:

  • Virtual sports
  • Live casino games
  • Table and dealer games
  • Sports betting
  • Slots and jackpots

It started to develop in the 1990s with increased internet speed and the commodification of computer technology for regular households. More and more people started moving to digital spaces for entertainment, and the casino industry was no different. The international judicial system had to adapt to gambling laws, as moving to the online space provided more opportunities for players to access casinos and more opportunities for casinos to make a profit.

Special gambling licenses had to be given to the companies operating online casinos, which to this day isn’t allowed in every country. Although many of the current online casinos have a Curaçao iGaming license, in the 90s, Antigua and Barbuda was the first to recognize the opportunity to give offshore casinos gambling licenses, which would then be available across the world.

Seeing the market potential iGaming had, many countries started implementing policies that would make it easier for investors to enter the industry. Although many online casinos are restricted in the United States, in 2018, the Supreme Court adopted new laws and repealed the Professional and Amateur Sports Protection Act (PASPA) to enable its investors to get involved in such a booming market. The projected value for the iGaming industry in 2026 is expected to be over $100 billion (Technavio, 2022). It’s no wonder this is the case, as the development of iGaming technology has been a game-changer over the last few years and is one of the main reasons why this industry is on the rise.

Revolutionary iGaming Technology

The iGaming industry depends on the most recent technological advancements as it expands. However, while some of these innovations become trends, others help define the whole sector’s direction. Let’s look at four technological innovations that have and will change the iGaming landscape.

Blockchain Technology

#1 Blockchain Technology

There’s a reason that the iGaming industry has achieved such an expansion at the same time as the development of blockchain technology. Technological innovations from the blockchain sector have brought more gambling security while giving new payment opportunities and more accessible storage options to players and online casinos. The influence of blockchain as the leading iGaming technology can be seen through cloud-based storage, cryptocurrency, and the appearance of blockchain casinos.

Incorporating the latest technological developments, online casinos employ cloud computing to handle and store player information while improving operational efficiency. The most recent developments in cloud-based technology can help the gaming industry reach and maintain millions of players globally.

In nations where it’s illegal to gamble in brick-and-mortar casinos, cloud computing offers gamblers a safe haven where they may play casino games without worrying about facing legal ramifications. Online crypto casinos are not as liable to these restrictions as their physical counterparts, which is why crypto-only online casinos are becoming one of the main online gambling trends. The participants’ information confidentiality and anonymity are guaranteed by the encrypted storage mechanism, which minimizes security threats from the outside.

Moreover, blockchain development has enabled new digital currencies to emerge. Most popular cryptocurrencies like Bitcoin, Litecoin, and Ethereum are becoming omnipresent in online casinos. Crypto and FIAT payment options have become a new standard for all online casinos. With the help of this new technology, gamblers can receive their winnings immediately, which is a significant improvement over the high fees and drawn-out payout processes associated with credit reimbursement, bank transfers, and e-Wallets.

Blockchain methods have become so integrated into the iGaming industry that many young casinos use only cryptocurrency. The benefits for players are obvious:

  • Faster payouts
  • Guaranteed anonymity
  • Better security

Game developers are also taking note of the blockchain integration and are now developing games compatible with FIAT and cryptocurrency. Furthermore, some new games are compatible only with crypto, so bets can only be made in cryptocurrency. This shows that blockchain technology has substantially changed the iGaming industry and will likely be a huge part of its further development.

Virtual Reality

Augmented and Virtual Reality

Maybe the most intriguing iGaming technology is virtual reality. Augmented and virtual reality allows online casinos to simulate the casino experience and offer a digital substitute for conventional sit-down gambling. While virtual reality (VR) is entirely based on the digital world, augmented reality (AR) incorporates elements of the digital environment into physical reality. These innovations are becoming more and more important for online casinos as they have the means to bring the full casino experience to players in any environment they are currently in.

AR and VR have enabled the creation of new forms of online casinos. For example, there are now “video casinos” that allow users to connect with other online gamblers while seated at actual gaming tables. Utilizing special 3D cameras, the gameplay is streamed to online gamers, letting you fully immerse yourself in the experience. However, the technology is still at the beginning of its development, even though some of its main concepts date back to 1957.

For instance, the graphics in virtual reality are a long cry from those in contemporary video games. In addition, virtual reality hardware is pricey and hence far less widely available. In order to maximize the benefits of VR technology, you will also need a powerful PC, which raises the price even further. Considering the costs and the low-quality graphics of VR games, virtual casinos might need some more work to do before they become a standard in the industry, especially if we consider the development and ease of mobile gaming.

Virtual reality has limitless potential, even though its current condition is far from ideal. The good news is that many businesses have already made significant investments in the creation of virtual technology. VR is currently primarily used in the video game industry, but it will surely enter the iGaming sector more. With better graphics and accessibility, VR might become an integral part of the iGaming industry in the future.

artificial intelligence

Artificial Intelligence

Artificial intelligence and machine learning have transformed every industry possible, so iGaming is no exception. Self-learning algorithms have allowed online gambling companies to better personalize the experience for the players. The online casino sector’s use of AI analytics enhances the player experience, spots fraud, and improves data-driven business choices.

With the advent of modern iGaming tech, online casinos can now monitor player history, betting patterns, preferred games, and a myriad of other “signals” of player activity. A more individualized player experience, a safer gaming environment, and more operational effectiveness are made possible by the analytics layer’s actionable insights and data usage for the iGaming technology stack.

The same is true when it comes to iGaming advertisements. The algorithms can differentiate potential customers and their preferences through a thorough analysis of the data and find the right way to place the service in front of them. Vital details like a user’s betting preferences are collected when they visit a betting site and are used to customize offers, bonuses, and other services. This raises revenue while bringing down marketing expenses. So, using machine learning algorithms benefits the player and the online casino company.

Mobile Gaming

One more very important iGaming technology development is the vast improvement in mobile gaming. Most gamers nowadays want access to their games at any time and place, so game developers started massively optimizing their games for mobile devices. Online casinos did the same, with their websites available on all devices and platforms to maximize the potential audience group. The development of stronger devices and better mobile graphics has allowed this transition to go smoothly.

Stronger internet connections are also a big factor in mobile gaming development. In addition to enabling faster game downloads than current 4G networks, 5G networks also support the growth of mobile-based cloud gaming services and augmented reality (AR) games. One million devices can be supported by 5G in a single square kilometer, encouraging more people to play mobile games, especially multiplayer ones.

In 2021, mobile gaming accounted for almost 57% of global video game revenue (Thematic Intelligence, 2022). We can see the shift towards mobile happening in real-time, which benefits the iGaming industry. Mobile casino games are simple and do not need a large amount of power to be run like some video games do. Therefore, it’s perfectly suitable for mobile devices, and I believe these two industries will continue to grow together for years to come.

iGaming Technology Final Words

Several iGaming technologies have enabled the online gambling industry to develop rapidly. Blockchain technology has brought more digital security to the players and various payment options guarded by encryption.

Although still in development, AR and VR have an interesting effect on the player experience in online casinos, as they can get real-life casino experience from the comfort of their home. The development of artificial intelligence and machine learning algorithms has allowed casino companies to enhance the gambling experience with personalization and help with their advertising efforts while lowering expenses.

Mobile gaming is probably the most important iGaming technology as it has become the main video game outlet. It will be very interesting to see how iGaming will continue to develop, but one thing is certain: These technologies will be involved in one way or the other.

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