Projected to grow from 106.22 billion USD to 117.5 billion USD in 2025, the iGaming industry is set for a 10.6% growth in a single year. Whether it’s online Rummy, dealer games, or fantasy sports, the market for iGaming is fast expanding with the reach of smartphones.
Further, developments in tech are adding to the reasons why many are starting to prefer online gaming to live games.
The journey of iGaming to online platforms
Whether a professional sport or a parlor game, most games that form a part of iGaming have mass popularity. Thus, people tend to associate them more with matches that require a physical presence. This includes online rummy and poker.
Through live streaming and app stores, iGaming started a steady journey of transition towards online platforms. This received a boost due to partnerships with sports brands and leagues. Further, the COVID-19 lockdown led to more people visiting iGaming sites as a recreational activity.
Currently, developments in tech are one of the main reasons why iGaming is fast growing, with online gaming expected to reach 156.6 billion USD in 2029.
Why Discuss the Future of iGaming?
iGaming is expected to grow with a CAGR of 12.3%, a forecast that is driven by the below:
- Advancements in fintech.
- Tech smart platforms as well as users.
- Changes in the consumer dynamics.
- Changes in legal and regulatory norms.
Further, the below developments in technology are the key reasons why people prefer online gaming:
- Immersive graphics
- Investment in AR/VR
- Mobile-friendly and mobile-first interface
- Better features with AI
- Data safety using Blockchain
Owing to both, iGaming is a thing of now and the future.
Emerging Technologies Shaping iGaming
To attract more traffic to their portals, iGaming companies are developing more games to offer on their apps and websites. These are being further supported by rapidly developing tech such as:
Virtual Reality (VR) and Augmented Reality (AR)
Players often want to experience the joys of being on the field or at a live table when they take part in iGaming. To meet this, VR/AR comes into play. With a realistic design, developers create an immersive experience for all users.
Artificial Intelligence (AI) in iGaming
In online gaming, AI creates a tailor-made experience to ensure that players feel comfortable with the interface. Further, it makes sure that there are checks in place for fair play among gamers. To add, AI adds to the security features of the portal to prevent fraud.
A Mobile-First Approach to Gaming
With 60.42% of the global population owning a smartphone, mobiles are the first point of access to the internet for most. This translates to more people taking up online gaming via their phones instead of a PC. With improvements in connectivity such as 5G and low latency on mobiles, people have an easier time accessing iGaming.
Blockchain in Interface Design
With easy disbursals and transparent operations, Blockchain serves as the most efficient tech when it comes to maintaining client data and transactions. By removing intermediaries and adding to the security features, Blockchain creates a better algorithm for iGaming platforms. This, in turn, increases authenticity and attracts more clients to the platform.
The Role of Mobile Gaming in iGaming’s Future
One of the key reasons behind the rapid growth of iGaming is the spread of internet access. As per 2024 PIB data, India had 954.4 million people with access to the internet. This accounted for the 52% internet penetration rate.
Further, a 2024 data states that 659 Indians own a smartphone, which is roughly 46.5% of the population. With increasing accessibility, iGaming companies offer cross-platform compatibility. This implies that the games run well on a Console, PC as well as a mobile.
In turn, this will boost traffic on the iGaming app or website.
Trends Driving iGaming Forward
Some key trends that aim to boost the market hold of iGaming are as follows:
Gamification Elements in Online Establishments
Being at the top of the leaderboard is a draw for all gamers. Further, levels, quests, challenges, and rewards act as incentives for players, keeping them engaged in the game. Further, an immersive story and graphics also play a role in drawing more traffic to the game.
Fantasy Sports and Online Tournaments
Online tournaments add an edge of competition in fantasy sports, online Rummy, and similar games. This keeps players engaged, drawing their attention for more. To add, tokens gained from participation can be used by players to advance further. This becomes a motivation for many, keeping them hooked.
Regulation and Legalisation Trends
With significant growth, iGaming is a source of revenue for governments. Thus, to safeguard their citizens while maintaining a growing economy, most governments aim to only regulate the sector by legalizing it. Thus, the companies aiming to operate in the iGaming sphere need to opt for a gaming license and navigate the norms set by the regulatory bodies.
Issues Faced by the iGaming Industry
From investments to regulatory norms, the iGaming industry is growing in the face of challenges. Some of the more common issues that the iGaming industry is experiencing are:
Addressing User Responsibility
Customers are key for any business, whether it’s online Rummy or fantasy sports. Thus, it becomes the duty of the iGaming platform to protect their interests. This comes in the form of better security features, protecting the client’s data, as well as setting up prompts to monitor addictive behavior.
Market Saturation in Online Gaming
With multiple companies operating in the iGaming sphere on a global level, the competition is stiff. Thus, these companies have to explore the market for untapped games to launch online to maintain an edge over others.
High Interface Development Costs
Though immersive graphics using AR/VR are available, the design, testing, and deployment involve serious investment. These costs need to be offset with revenue generation so that companies get the targeted returns.
Tackling Data Security Risks
No online tech is completely free from the threat of hackers. Since iGaming sites keep a record of client data, they are at a greater risk. Thus, proper security protocols need to be implemented along with regular audits to keep a check on the security status of said portal.
Navigating Multiple Legal Norms
Though many governments are legalizing iGaming, they are also setting up stringent regulatory measures to protect the interests of their citizens. While these are expected to vary globally, in many countries there is also a regional variation. Thus, iGaming companies have to be aware of regulatory norms that are specific to each location they are operating in.
Predictions for the Future of iGaming
Set to expand their reach and grow, iGaming has the following targets:
Expansion of Cloud Gaming
By allowing players to join from remote locations, iGaming companies can access a wider market. A key aspect of this is to design mobile apps, reduce the latency of the portal, and create a high-end user experience.
Enhanced Real-Time Multiplayer Experiences
To retain players and draw a bigger clientele, iGaming platforms need to provide multi-player games. These open up the portals to competition among players drawing a bigger traffic.
AI-Driven Dynamic Content
Predicting user behavior to provide suggestions, and altering the platform to meet user preferences, are some of the smaller changes AI can implement in iGaming. This, in turn, improves user experience and, thus, builds demand.
To Conclude
iGaming is a step into the future for the online gaming industry. With increased scope for tech incorporation, iGaming stands to gain from the use of AI, AR/VR, and more. Further, with proper security protocols, the portals can aim to improve client security.
Whether it’s online Rummy, poker, or a fantasy sport, iGaming platforms enjoy the scope to set up a user-friendly interface for future growth.
Also Read: Building Brand Loyalty in a Crowded iGaming Market
