Within the last three decades, iGaming has exploded in popularity to become one of the most valuable markets in the industry. Its inception dates as far back as the mid-90s. Sally M. Gainsbury defines iGaming as “an online game which requires payment, may involve monetary rewards, with the results significantly dependent on chance. The iGaming industry encompasses casino games, sports betting, horse race betting, lottery, poker, mobile gambling, and bingo.
The Birth of i-gaming
Online gaming started to become popular in the mid-90s. In 1994, the government of Antigua and Barbuda was the first country to enact the Free Trade & Processing Zone Act. This law legalized online casinos and sports booking companies. That same year, the first online gambling venue – the Lichtenstein International Lottery, was made accessible to the public.
Established in 1994, Microgaming became the first and biggest online game developer, and created the first online progressive slot game named “Cash Splash”. The company still exists today. In 1995, Windows 95 was launched by Microsoft, this meant that many players could access the internet at the same time online casinos were being launched. The Gaming Club was the first online casino to launch, powered by Microgaming software in 1998.
The First games and Set-up (Early 2000s)
The term “iGaming” originated in the early 2000s when online casinos began to gain widespread prominence. New iGaming hubs began to spring up in several UK Territories including Alderney, Gibraltar, and the Isle of Man. The history of iGaming in Gibraltar began in 1998 with a company known as Victor Chandler, now known as BetVictor.
After this, many casinos moved to the country, making it one of the hotspots for iGaming. Malta is another one of the leading iGaming hubs globally. Boasting a recognized license since 1996, Curacao is one of the oldest and most popular jurisdictions in the world that offer gambling licenses through their regulatory bodies.
Bridge to Mainstream (2005-2015)
One of the breakout technologies during this era was live-streaming. Live casinos were invented using this technology and players received a live video feed of the casino and the dealers, creating a similar atmosphere to a land-based casino.
A few promising iGaming companies such as Canbet, UltimateBet, Absolute Poker, and 666Bet started out well. In fact, 666Bet experienced the highest growth in 2014 and UltimateBet was one of the biggest casinos in the early 2000s. However, they all died out by 2015 for reasons ranging from fraudulent bonuses to cheating players; while other iGaming companies such as Playtech, NetEnt, William Hill, and Evolution Gaming began to increase in popularity.
Current i-gaming Trends
iGaming is growing at a remarkable pace. This is mainly because of the flexibility and convenience it offers. Nowadays, players can access a broad range of games anywhere and anytime, and this comfort and convenience have contributed to the popularity of iGaming.
Advancements in technology have also improved the gaming experience. Now, there are new offerings that include Virtual Reality and Augmented Reality, making iGaming more attractive to players. Another factor that contributed to the explosive growth of the iGaming industry was the provision of advanced payment methods, some online casinos now accept cryptocurrencies, further increasing the mainstream adoption of iGaming.
The online gambling market is currently valued at $59 million, with the industry being projected to increase in value up to $93 billion by 2023. In 2019, lotteries were the biggest section of the iGaming industry, accounting for 46% of the total revenue. Accounting for a 7% increase annually, the sports betting section is projected to record an exponential increase in the coming years. iGaming players currently constitute 11% of the global internet traffic.
Additionally, the iGaming industry has contributed significantly to the GDP of countries like Malta, Curacao, Macau, and even the UK. By the end of 2019, the Malta Gaming Authority had issued licenses to 294 casinos. The economy of the island has been diversified to include iGaming, and this has resulted in the creation of 11,747 employment opportunities that contributed to 4.8% of the total jobs in Malta.
Previously, only the Swedish Gaming Authority (Spelinspektionen) were authorized to operate gambling services for real money in Sweden. The advent of digitalization has eliminated monopoly from the system, and players from Sweden can access games from offshore casino operators.
The biggest online gambling companies globally include IGT, GVC Holdings Plc, Bet365, Scientific Games, Paddy Power, Betfair, William Hill, The Stars Group, Playtech, Kindred Group Plc, and 888 Holdings Plc.
The future of i-gaming
With the rapid absorption and modification of modern technologies by online casinos, it is impossible to predict the future of iGaming. In 2019, the iGaming market surpassed $5 billion and is expected to increase at a 16.5% CAGR between 2020 and 2026. It is apparent that the expansion of the iGaming market depends on the government of top countries, including the UK, US, Australia, Malta, Germany, and Sweden, where online gambling is a potentially lucrative venture.
