Understanding What is iGaming
May 21, 2025
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Discover iGaming: Online betting and casinos, from poker to eSports. Explore market trends and regulations. Click to explore this dynamic industry!
Understanding What is iGaming
Would you start a business in a market expected to hit $117 billion by 2025? That’s exactly where iGaming is headed, and fast. The industry has been booming in recent years with increasing mobile access, digital payments, and a growing number of players worldwide.
Whether you’re an entrepreneur eyeing your first gaming platform or an operator looking to expand, now’s the perfect time to step in. But before you jump in, it’s important to understand what iGaming really is, how it works, who’s involved, and where the market’s going.
This blog covers everything from the basics to the businesLet’st’s begin by understanding what it means.
What Does iGaming Mean?
iGaming refers to online gambling, where players place bets or wagers on games or events via the internet. This includes online casinos, sports betting, poker, lotteries, bingo, and skill-based games that offer real money rewards.
Unlike traditional gambling, iGaming is entirely digital, so users can play from anywhere using a computer, tablet, or smartphone.
The term “iGaming” was created to differentiate online gambling from in-person casinos. It includes both games of chance, like slots and roulette, as well as strategy games like poker and fantasy sports.
Over time, it’s also expanded to include new formats like live dealer games, virtual reality casinos, and eSports betting. With strong growth and increasing global popularity, iGaming is now one of the digital economy’s fastest-growing and most profitable areas. Curious to know where this growth began? Let’s look at the industry’s evolution.
Evolution of iGaming: From Early Days to Global Growth
The iGaming industry didn’t become a billion-dollar market overnight. It’s been growing steadily since the mid-1990s, thanks to technological changes, laws, and how people play games online.
Here’s a simple look at how it started and where it’s going.
1994–1996
- In 1994, the government of Antigua and Barbuda passed the Free Trade & Processing Act that allowed companies to apply for licenses to run online casinos. This was the start of legal online gambling.
- That same year, a company called Microgaming built the first working software for online casino games.
- In 1996, Canada’s Kahnawake Gaming Commission was set up to license and monitor online gambling websites.
Late 1990s–Early 2000s
- Online gambling websites exploded, from just 15 sites in 1996 to over 200 by 1997.
- By 1998, the industry was already making over $830 million a year.
- Online poker rooms started appearing, giving players new types of games to enjoy.
2000s
- Faster internet helped improve game quality and the overall experience for users.
- People started playing casino games on mobile phones, not just on desktops.
- Live dealer games were introduced, letting people play with real dealers streamed through video, almost like sitting at a real casino table from home.
2010s
- Countries like the UK created the Gambling Act to make sure games were fair and players were protected.
- In the U.S., some states, like New Jersey, have made online gambling legal and shown how it could be regulated.
- Online platforms improved security, and trusted payment methods made it easier and safer for people to deposit and withdraw money.
2020s
- The global iGaming market reached $85 billion in 2023 and is expected to hit $117 billion by 2025.
- New ideas, such as using VR and AR, are starting to shape how people play, making games more fun and interactive.
- Many platforms now also accept cryptocurrencies, giving players more ways to pay and play.
iGaming’s growth over the decades hasn’t just been about size; it’s also evolved in form. What began as a handful of online casinos has expanded into a diverse ecosystem of games and platforms tailored to modern players. Let’s look at the key components of this diverse ecosystem.
Key Components of the iGaming Industry
iGaming comprises different formats and platforms that keep players engaged and businesses running. Online casinos, sports betting, lotteries, and live dealer games each play a unique role in the ecosystem.
Here’s a quick look at the major types of iGaming experiences that dominate the market today:
1. Online Casinos
Online casinos offer digital versions of traditional casino games such as slots, blackjack, roulette, and baccarat. These platforms allow players to enjoy casino games from their devices, making them convenient.
2. Sports Betting
Sports betting platforms allow users to place wagers on various sports events, including football, basketball, and horse racing. These platforms offer pre-match and live betting options, enhancing the excitement of watching sports.
3. Poker Rooms
Online poker rooms enable players to participate in poker games and tournaments with others worldwide. Popular variants include Texas Hold’em and Omaha. These platforms often host regular tournaments and offer various stakes to cater to different player levels.
4. Bingo
Online bingo platforms provide digital versions of the classic game, allowing players to purchase cards and participate in games with automated number calling. These platforms often feature chat rooms and community events to enhance player interaction.
5. Lotteries
Online lottery platforms offer digital access to national and international lottery games. Players can purchase tickets and participate in draws, with some platforms providing instant-win games and syndicate options.
6. Live Dealer Games
Live dealer games bridge the gap between online and land-based casinos by streaming real-time games with human dealers. Players can interact with dealers and other players, enjoying games like live blackjack, roulette, and baccarat from their devices.
Behind each of these iGaming components are key providers or platforms powering them. These key players are listed and explained below for your better understanding.
The Key Players in iGaming
The iGaming industry relies on a network of people and companies that make the entire experience possible. Each group plays a specific role, from those who build and operate platforms to those who promote them and play the games. In this section, we’ll break down the main types of players that keep the iGaming world moving:
1. Game Operators
Game operators are the companies that run online gambling platforms. They manage the websites or apps where players engage in activities like casino games, sports betting, and poker. Operators handle customer service, marketing, and compliance with regulations.
2. iGaming Suppliers
Suppliers play a crucial role in powering online gambling platforms by providing the technology and software behind them. Their solutions include game integration, payment processing, and security features. Source Code Lab is a leading example of an iGaming platform provider.
3. Game Providers
Game providers are the developers who create the actual games available on iGaming platforms. They design and build games like slots, blackjack, and roulette.
4. Affiliates
Affiliates are marketers who promote iGaming platforms to attract new players. They use websites, blogs, and social media to drive traffic to operators’ sites, earning a commission for each referred player. Affiliates play a crucial role in customer acquisition strategies.
5. Players
Players are the end-users who participate in online gambling activities. Their preferences and behaviors influence the development of games and platforms. Providing a safe and enjoyable experience for players is a top priority for all stakeholders in the iGaming industry.
With each of these players contributing to the ecosystem, the iGaming industry has built a strong foundation for global expansion. To really see how big the industry has become, let’s examine how fast it’s growing and which parts of the world are leading the way.
Global Market Size & Growth Rate
The iGaming market is experiencing significant growth due to technological advancements, increased internet accessibility, and evolving consumer preferences. In 2024, the global iGaming market was valued at approximately $97 billion, with projections to reach $117 billion by 2025.
Here’s a little year-by-year growth overview:
- 2023: $85.62 billion
- 2024: $97 billion
- 2025 Projection: $117 billion
- 2030 Projection: Between $153.57 billion and $205.60 billion
This growth is underpinned by a compound annual growth rate (CAGR) ranging from 11.9% to 14.1% from 2025 to 2030.
Here’s a look at regions where this industry is witnessing massive growth:
Top Growth Regions
- Brazil: Brazil’s iGaming sector is poised for substantial growth, with sports betting expected to reach $2.39 billion by 2025. The government is implementing regulations requiring operators to have at least 20% local ownership and adhere to stringent data protection standards.
- Turkey: Turkey’s gambling market is significant, with sports betting being particularly popular. The government maintains a state monopoly on sports betting and strictly controls online gambling activities.
- Philippines: The Philippines’ iGaming market has grown 165%, contributing to a 24.6% increase in overall gambling revenue in 2024. The Philippine Offshore Gaming Operators (POGO) framework provides a regulated environment for operators.
- Eastern Europe: Countries like Romania and Poland are experiencing growth in online gambling, driven by improved internet access and updated regulatory frameworks.
While this growth poses an excellent opportunity for you in the iGaming industry, it also brings some challenges. Before entering or expanding in the market, read these challenges and be prepared to tackle them.
Challenges and Considerations in iGaming
The iGaming industry offers great opportunities, but it also comes with its fair share of challenges. Operators need to understand complex regulations, ensure security, and stand out in a competitive market. In this section, we’ll explore some of the key challenges and how operators can address them:
1. Understanding Local Regulations
The iGaming industry operates in different regulatory environments, which can vary greatly from one region to another. For example, Brazil now requires operators to have at least 20% local ownership, while the Philippines has its own rules for offshore gaming operators. This means operators must be familiar with local laws and stay flexible as things change.
2. Keeping Payments Safe and Promoting Responsible Play
Keeping players’ data and payments safe is a top priority. With more digital currencies and different payment methods available, this becomes even more important. Ensuring responsible gaming is also crucial.
Operators need to put in place measures to prevent underage gambling and help players who might be at risk of developing a gambling problem.
3. Standing Out in a Crowded Market
There are many iGaming platforms, so standing out is essential. Operators must offer something unique: a smooth user experience, fresh game options, or features like live dealers. Mobile-friendly platforms and personalized offers also help keep players engaged. Staying on top of trends and responding to player preferences is key to staying ahead.
As the iGaming industry evolves, having the right tools and support is crucial to success. Source Code Lab offers everything you need to launch and scale your iGaming platform with ease.
How Source Code Lab Helps You Grow in the iGaming Industry
Source Code Lab delivers tailored iGaming solutions to meet the unique needs of each operator. We provide the tools and expertise to launch online casinos, sportsbooks, and integrate third-party games. Here’s how we support your growth:
- Tailored iGaming Platform Development: Custom-built solutions that align with your brand, vision, and target audience.
- Turnkey & White-Label Solutions: Our ready-to-launch platforms, including casino and sportsbook options, allow you to get up and running quickly.
- 24/7 Technical Support: Always-on support ensures your platform operates smoothly and any technical issues are resolved promptly.
- Third-Party Game Integrations: Seamless integration with leading game providers, expanding your game library, and offering players more options.
Summing Up
The iGaming industry offers huge potential for growth and success, but navigating its complexities requires the right technology and support. Whether you’re just starting or looking to expand your existing platform, Source Code Lab can help you make it happen.
Ready to launch your custom online casino or sportsbook? Contact Source Code Lab today for a free consultation or platform demo. We’ll help you get started and ensure your success in the booming iGaming market.
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