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The Ultimate Guide to iGaming: Evolution, Types, and
Regulations
IGAMING
The Ultimate Guide to iGaming:
Evolution, Types, and Regulations
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SUMMARY
The iGaming market is highly competitive. Excelling in player acquisition within the realtime streaming industry demands a well-planned and flexible strategy. By utilizing multichannel marketing and adhering to industry best practices, you can effectively attract,
develop, and sustain a dedicated player base.
It was inevitable: the everyday practices of recreational wagering and betting have made
their way online to comprise the world of iGaming. iGaming has transformed rapidly over
the past few years, evolving from simple online card games (anyone remember the early
days of digital solitaire?) to a vast, multifaceted industry that attracts millions of players
around the world.
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But what counts
as iGaming,
exactly,
what
direction
is theLearn
current
landscape heading
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2025and
| Meet
Dolby
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more
in? In this guide, we’ll cover how iGaming as we know it came to be, different types, the
regulatory environment, and how this dynamic industry is evolving.
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Table of contents
What is iGaming? Understanding the Basics
The Evolution of iGaming: From Land-Based to Digital
Current State of the iGaming Industry
The Future of iGaming
Legal Aspects and Regulations of iGaming
The Role of Software Providers in iGaming
Conclusion
What is iGaming? Understanding the Basics
You have likely heard the term floating around the internet before, but what is iGaming,
exactly?
iGaming, also known as interactive gaming, refers to digital and online games that include
any kind of betting, whether it be for real monetary gain or in-app points.
Let’s clarify the important difference between iGaming and general gaming first (which
you may have also heard referred to as “eGaming”). You can think of the former as games
of skill and chance – roll the dice, see who wins, play the right card, etc. The latter includes
classic RPG games you’re undoubtedly familiar with, such as World of Warcraft or Mortal
Kombat. It could also include mobile games like Candy Crush: no betting involved, just
simple, almost-mindless fun.
As such, iGaming is a broad-ranging term that encompasses many activities. Some
examples include:
Sports betting
Placing wagers on sporting events such as football, basketball, horse racing, and eSports.
If you’ve ever used an app to place a bet during March Madness, you’ve participated in
iGaming.
Online Casinos
Virtual platforms that offer traditional casino games like slots, blackjack, poker, and
roulette. You can play with other people or against a virtual “dealer.”
Online lotteries
Online lotteries allow players to purchase tickets and participate in draws, all without
taking a trip to the nearest convenience store.
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The Evolution of iGaming: From LandBased to Digital
One day our great-great grandchildren may balk at the idea of going to a brick-andmortar casino to gamble, but fortunately for us, iGaming history doesn’t go quite that far
back yet. Aside from casinos, recreational betting was previously confined to betting
shops, stadiums, and other physical locations, but the advent of the internet in the late
20th century catapulted betting toward online spaces.
Key Milestones in iGaming History
1994: The first-ever online lottery website launched in 1994, which allowed the public to
buy tickets for the International Lottery based in Liechtenstein. The Free Trade and
Processing Act passed in the Caribbean country Antigua and Barbuda that same year,
allowing licenses for online casinos.
1996: The first real-money online casino, InterCasino, launched this year. 1996 also
marked the beginning for iGaming regulatory practices, such as through organizations
like the Canadian Kahnawake Gaming Commission, making online betting more secure.
2003: Chris Moneymaker won the World Series of Poker and sparked a poker boom,
naturally leading to a surge in popularity for the online version of the game. 888.com
launched this year and was the first online casino licensed in the United States.
The early 2000s is also when the Internet as we know it really started to take off.
Technological advancements made it faster and household computers became
increasingly commonplace.
2010s: Mobile apps revolutionized the iGaming industry, making it more accessible than
ever. iGaming trends evolve as the field becomes its own independent sector.
2018: The US passes the Professional and Amateur Sports Protection Act, regulating
sports betting and speeding up the growth of legal gambling.
2020s: iGaming continues to grow. The ability to place bets from the comfort of your
home, or even out in public from a mobile device, makes online betting more convenient
than at any point in history, allowing for more people to participate with wagers big and
small.
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Current State of the iGaming Industry
The iGaming business has experienced exponential growth in recent years, with the
global iGaming market expected to be worth at least $100 billion by 2025. Technological
advancements, the ubiquity of the Internet, and changing consumer preferences drive this
growth, especially the pervasiveness of smartphones and high-speed internet that make it
accessible and convenient.
The expansion of regulated markets in different regions also provides a legal framework
that boosts consumer confidence and attracts investment. Are you likelier to place a
wager in an area that offers legal protections, or one that opens the doors for scams, even
if the possibility of winning bigger is higher? Though risk is inherent in iGaming,
consumers don’t want too much risk, so government regulation helps the iGaming market
flourish.
European markets offer particularly strong protections and many parts of the US are
catching up. In fact, Vixio predicts that the US portion of the iGaming business will reach
$8.2 billion by the end of this year, surpassing the UK’s $7.5 billion, which is currently
home to the world’s largest iGaming market.
iGaming providers are also investing heavily in new technology that enhances the user
experience. Live dealer games along with virtual and augmented reality are becoming
more prevalent, attracting new players who aren’t typical bettors and retaining existing
ones.
The Impact of COVID-19 on the iGaming Market
There is much to be said about COVID-19’s influence on iGaming. Physical casinos,
betting shops, and sports stadiums closed during the pandemic (or limited attendance),
pushing fans to online spaces where they could place bets safely from home. The
convenience of remote gambling, along with the pressure on brick-and-mortar businesses
to offer online options, dramatically accelerated the growth of iGaming.
iGaming experienced a great deal of player diversification during the pandemic, too.
Betting enthusiasts were searching for new ways to indulge in their hobby, but people
who typically avoided casinos and live sports betting had more incentive to try it due to its
convenience, more exposure and proximity (such as if loved ones or quarantine partners
were engaging with it), or the opportunity to win cash. Increased security and the
adoption of digital payment methods made newcomers more confident — not to mention
the continuous entertainment value iGaming provides.
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The Future of iGaming
The same factors responsible for iGaming’s recent boom will also propel the industry into
the future. Innovations in iGaming technology will or could include advancements like:
Mobile technology
Mobile gaming apps make iGaming even more accessible, allowing players to place bets
on the go. Even apps in industries not normally associated with betting may include
related functionality to amplify fan engagement.
VR and AR
These technologies enable immersive gaming experiences and transform how players
interact with games. Which is cooler: playing virtual poker on a phone, or wearing a
headset that makes it look like you’re in Vegas?
Blockchain
Blockchain technology ensures security and transparency in transactions that boosts trust.
Plus, blockchain is necessary for exchanging cryptocurrency, which betting enthusiasts are
progressively betting with in lieu of real cash.
5G Technology
The impact of 5G on online casinos and other wagering spaces will be significant,
providing faster and more reliable connections. Speed and reliability are essential for
smoother gameplay and real-time betting — no one wants a lag that could mean the
difference between winning and losing!
You can learn more about the future of iGaming and iGaming technology — including live
dealer casinos — at our blog post on the future of iGaming.
Legal Aspects and Regulations of iGaming
Like with brick-and-mortar gambling, the legal aspects of virtual betting vary significantly
around the world, but understanding iGaming regulations is crucial for operators and
players alike.
Global iGaming Regulations
Different countries enforce different rules. The UK is one of the most well-regulated
markets thanks to the UK Gambling Commission (UKGC). This organization ensures that all
operators adhere to strict fairness and security standards.
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Malta is another
country
famous
for its| robust
regulatory
framework.
The Malta Gaming
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Authority (MGA) enforces stringent licensing requirements, making the island nation a
trusted hub for iGaming providers and players.
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Some Asian markets like China and Japan, however, have more restrictive laws that limit
iGaming operations. On the other hand, the Philippines have established regulatory
organizations like the Philippine Amusement and Gaming Corporation (PAGCOR) to
oversee and license online gambling activities.
The US’s legal landscape is complicated because the federal government largely leaves
iGaming regulations to individual states, and only seven have legalized online casinos
(namely, New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut, and
Rhode Island). To obtain a license in these states, operators must meet rigorous
requirements, including financial stability, security measures, fair gaming practices, and
responsible gaming initiatives. 30 states permit online sports betting.
The Role of Software Providers in iGaming
Software providers play a critical role in the iGaming industry. iGaming is built on their
work; they maintain the platforms and apps that attract and retain players. For example, if
you’re looking to build an iGaming platform, we at Dolby Millicast can provide real-time
video streaming that optimizes the betting experience and makes it as engaging as
possible.
Some popular iGaming services include:
Bet365, one of the world’s leading online betting organizations
888 Holdings, the owner of 888casino that we mentioned above
PokerStars, the largest online poker site in the world
Microgaming, a leading software provider in the industry that creates high-quality casino
games
Playtech, which offers both casino games and sports betting software
DraftKings, known for fantasy sports
FanDuel, also known for fantasy sports betting
Conclusion
iGaming has come a long way from its traditional roots, evolving into a sophisticated and
expansive industry. Understanding what iGaming is, its history, current state, and future
trends is beneficial for anyone who wants to participate in this field as a player or platform
builder. With continuous technological advancements in experience, payment, and video
— not to mention a growing global market — iGaming’s future is promising.
Ready to build your own iGaming solution? Sign up for Dolby Millicast and take the
experience of online betting to the next level.
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