What is iGaming Vertical? Online Gambling Industry, Types, Regulations, and Marketing

The iGaming industry is one of the fastest-growing gaming sectors globally, with online gambling being a large part of it. The launch of the first online iGaming website in the 90s marked a pivotal moment that contributed to the rapid growth and evolution of the iGaming market.

Everything from online casinos to sports betting, eSports, sweepstakes, and skill-based games play important roles in shaping the gambling aspect.

Given its fast rise and global spread, authorities in Europe, North America, Asia, and the rest of the world have had to tighten regulations to protect players within their jurisdictions and ensure operators stay compliant.

On the other hand, these operators evolve with the legal changes and use strategies like ad networks. This helps them to promote their offering while staying compliant and meeting player demands.

In this guide, we take you through the crucial components of the iGaming industry with a focus on online gambling.

We’ve covered areas ranging from laws to top territories and marketing options that reputable platform owners adopt.

What is iGaming and how big is the industry?

iGaming encompasses all forms of online gambling, including online casinos, sports betting, and other games of chance played for real money over the internet. The "i" in iGaming stands for "interactive," highlighting how activities within the industry are done online.

These activities typically fall into three main categories: online casinos, sports betting, and social casinos. Some people argue for more types, but they all fit under these core groups.

In 2023, the global online gambling market was valued at $86.6 billion, with Europe leading the way and emerging markets like Asia Pacific catching up fast.

How has the iGaming industry evolved over the years?

In the mid-90s, it would not have occurred to many that online gambling would step out from a few casinos to form its own eco-system. It is to such seemingly insignificant yet important moments in history that we owe these current positions:

• 1994: By passing the Free Trade & Processing Act, the government of Antigua and Barbuda provided a legal sense for online operating licenses for the first time (enabling operators to acquire licenses).
• Early 2000s: With an influx of more players, sports betting and internet-based poker took off, attracting more customers and opening up new revenue streams.
• 2010s: The 2010s saw mobile gaming revolutionize this sector; thus, gambling via smartphones and specific applications has made it more convenient for bettors as there are no location or time limitations.
• 2020s: Operators embraced cryptocurrencies, live dealer games, and even virtual reality, pushing the limits of what online gambling could offer.

Here's a chart summarizing the evolution of the iGaming industry:

The speed at which transformations happen in iGaming as a sector has been one major highlight so far in its journey.

It also means that this sector has what it takes for long-term survival, especially because technology keeps advancing, thereby changing how we experience every single thing, including games.

What are the types of iGaming?

The iGaming industry in its current form embraces a broad range of experiences to meet the demands of different players as well as betting tastes. There are three main segments in this industry, which are online casinos, sports betting, and social casinos, but each of these segments has sub-verticals within the online casino verticals.

• Online Casinos: These are sites where you can play traditional casino games online such as slots, blackjack, and poker, among others. Some even offer live dealer games that enable players to interact with real dealers through video streaming, hence blurring the lines between digital and physical gaming.
• Sports Betting: There’s also sports betting, which forms a major chunk of the iGaming sector, and this involves placing bets on various sporting events like soccer, basketball, tennis, or even bullfighting, among many others.
• Social Casinos: Rather than wagering real money, players in social casinos use virtual currencies for games like slots and poker. At times, sweepstakes-based models are incorporated into these entities, which makes them more fun for those who are not into gambling for money.
• Skill based games: Skill-based games are a fast-growing segment in iGaming as operators look to attract younger demographics and diversify beyond traditional gambling offerings. They provide opportunities for competitive play and social interaction.

All of these gaming products, their subtypes, market share, and more are as follows:

1. Online casinos

Online gambling is a major part of the iGaming industry, which supports playing casino games including slots, blackjack, roulette, and poker from anywhere on the globe. Other platforms go a step further by offering live dealer games where gamblers interact with real human dealers who conduct games through a live stream. This basically mixes up conventional with digital gambling by providing an enriched experience.

As for its market size, the online casino niche is supposed to hit $35.13 billion by 2024 considering the upward trend of users opting for internet-based casino platforms. Some of the most popular gambling sites include Bet365, 888 Casino, and LeoVegas. A few things these operators share in common are mobile-friendly websites, rich and diverse game catalogues, as well as excellent customer service provision.

1.1. Crypto Casinos

Crypto casinos enable people to place bets on casino games using cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. When you access online gambling sites accepting crypto, you can enjoy popular offerings found in fiat online casinos, such as blackjack, poker, and slots, among others. Here, the main benefits are swift transactions, anonymity, and additional security provided by the use of blockchain technology.

The current market for casinos utilizing cryptos is small compared to traditional online casinos. It is expanding nonetheless, reaching up to 250 million dollars in size by 2024. There are many well-known crypto-specific online gambling platforms, as well as hybrids that support digital and fiat currencies. A few of the top players are BitStarz and Stake, which support Bitcoin as well as stable and altcoins.

2. Sports Betting

One of the biggest parts of the internet gambling market is sports betting, which enables users to gamble on various athletic matches. Mobile sports betting has emerged as a distinct and significant category within the broader iGaming landscape, evolving separately in regulatory frameworks across different regions.

Ranging from popular games such as basketball and football to more specialized ones like eSports and horse racing, there are countless choices open to gamblers. Users have access to many types of bets, including simple ‘win’ outcomes or ‘over/under’ totals, through interactive wagering that updates while events unfold.

According to recent projections, the sports wagering industry is projected to grow beyond $45.18 billion before 2025 thanks to growing mobile betting access. Operators like DraftKings and FanDuel offer full-range online sports betting experiences and even support daily fantasy sports for those who prefer fictional sporting events.

2.1. eSports Betting

This iGaming vertical has rapidly risen to be a very important segment of online gambling that permits clients to take part in betting for competitive video game tourneys. The advents in popular games like League of Legends or Dota 2, as well as first-person shooters such as CS:GO; open up an entirely new area for gamblers who find gaming enjoyable.

The popularity of sports betting in major leagues like the National Football League (NFL) has significantly impacted the iGaming industry, showcasing the expansion of betting beyond traditional sports. What sets it apart is real-time interaction where players can make live bets on events occurring in real life, predicting everything, including the results of games.

The global eSports betting market is expected to reach $2.5 billion by 2024 due to the increasing popularity of eSports, which is moving on par with traditional sports. Betway and Unikrn are some of the betting platforms that have identified this lucrative niche and are taking advantage of it by providing such services as live streaming, among others, specifically meant for betting on eSports only.

3. Social Casinos (Sweepstakes)

Sweepstakes casinos, also known as social casinos, provide an opportunity for players to enjoy trendy slot games and online poker in a typical casino environment without using real money. Instead of money, the users utilize virtual currencies; in some instances, they can be exchanged for prizes in the same vein as sweepstakes. 

This design appeals to casual gamers who want to enjoy online casino games for the fun elements only. The social betting market had increased up to 3.1 billion dollars by 2022, with more people engaging for its risk-free nature.

Popular websites such as Chumba Casino and LuckyLand Slots, among others, top the market. These operators attract players with impressive bonuses and a chance to redeem coins for cash prizes.

4. Skill based games

Skill-based games are an important and growing segment within the iGaming industry. Skill-based games are those where the outcome is predominantly determined by the player's skills, abilities, and strategic decisions rather than chance. In pure skill games, there is no random element - the player's skills fully determine the result.

Common types of skill-based games offered by iGaming operators include:

• Fantasy sports
• Strategy games
• Puzzle games
• Word games
• Arcade-style games
• Trivia/quiz games
• Certain card games like poker

5. Other types of iGaming Verticals

Online lotteries have made it easier than ever for players to participate in big draws like Powerball, Mega Millions, and EuroMillions, all from the comfort of home. Rather than having to visit a local retailer, you can now buy your tickets online and wait for the results just like traditional lotteries.

The market for online lotteries is growing, partly because of the sheer convenience and the larger prize pools. Services like TheLotter and LottoSmile stand out because they simplify the process, giving users easy access to some of the world’s biggest jackpots.

Understanding iGaming and Online Gambling regulations around the world

 iGaming, specifically online gambling, doesn’t follow a single set of rules regardless of market. Instead, it’s shaped by a mix of regulations, with each country or region having its own approach. These laws are designed to keep things fair for players, ensure operators stay honest, and promote responsible gaming. At the core of it all are licenses—official approvals granted to platforms that meet certain standards.

Take places like the UK and Malta, for example. These regions are known for having some of the most structured and well-known licensing processes.

On the flip side, some areas, like parts of Africa and Asia, are just beginning to develop their rules around online gambling. Licensing in these regions ensures that operators play by the book, protecting both the players and the industry itself.

In the next sections, we’ll break down online gambling regulations around the world and see how different regions manage their licensing and legal frameworks.

How is iGaming regulated in Europe?

Europe is home to some of the most developed iGaming regulations. In fact, countries like the UK and Malta issue the most respected gambling licenses in the world. The UK Gambling Commission is known for its strict oversight, ensuring that online operators adhere to fair play rules, responsible gambling measures, and stringent security protocols.

Malta, meanwhile, is a hub for many iGaming companies due to its flexible but robust licensing process managed by the Malta Gaming Authority.

Other countries, such as Sweden and Spain, have their own unique approaches to regulation, with local authorities issuing licenses and enforcing gambling laws.

In many cases, operators need to comply with multiple jurisdictions depending on where their players are located, making Europe one of the most regulated regions for online gambling.

How is iGaming regulated in North America?

In North America, the way iGaming is regulated differs slightly from what is obtainable in Europe. For instance, in the US, each state has its own rules on online gambling. New Jersey and Pennsylvania are some of the states where iGaming has been allowed, and the internet casinos, poker, as well as sports betting are all governed by state-level gaming commissions.

Conversely, some regions within the nation impose restrictions while others ban this activity altogether, making it difficult for people to participate in gambling at all times or places they want.

In Canada, the situation is also changing in terms of legislation. Ontario Province, is an example where they have started regulating iGaming via the Alcohol and Gaming Commission of Ontario (AGCO) which issues licenses to operators that comply with their criteria, such as; fairness, security, and responsible gaming. The regulatory changes in Ontario have also paved the way for the establishment of privately-owned sports betting platforms, significantly impacting the iGaming market.

Even though iGaming is increasingly popular across America, when dealing with regulators, you might think otherwise since they operate on much localized terms in terms of policy, which forces them into handling multiple regional frameworks due to different regulations in each region.

How is iGaming regulated in Asia?

Asia is more complex, especially because laws on things like gambling may be influenced by religious beliefs and social expectations. That’s why laws vary significantly across different countries, with some regions being highly restrictive while others embrace online gambling more openly.

Countries like the Philippines are known for having a relatively open and regulated iGaming market, with the Philippine Amusement and Gaming Corporation (PAGCOR) issuing licenses to operators.

On the other hand, places like China and India have much stricter regulations. In China, online gambling is largely prohibited, with only a few government-run lotteries allowed. India’s approach is more fragmented, with each state deciding on its own rules for online gambling. Some states permit it, while others impose outright bans.

Asia's vast differences in regulation make it one of the most complex regions for operators to navigate, as they must carefully align with local laws and regulations depending on the country.

How is iGaming regulated in Australia and New Zealand?

In Australia, the regulation of iGaming is handled by the Interactive Gambling Act of 2001, which prohibits online casinos from offering services to Australian residents.

However, online sports betting is allowed as long as operators are licensed by the Australian Communications and Media Authority (ACMA). Australians are still permitted to place bets on offshore platforms, but operators without an Australian license cannot target them directly.

New Zealand has a slightly more relaxed approach. The country’s main regulatory body, the Department of Internal Affairs, oversees online gambling.

While New Zealand residents can participate in overseas online casinos, local operators are limited to providing services like the New Zealand Lotteries Commission or the Totalizator Agency Board for sports betting.

Both Australia and New Zealand have strict rules aimed at protecting consumers and ensuring fair play, making their regulatory landscapes highly protective.

How is iGaming regulated in Central America?

Regulations in Central America differ a lot depending on the country. For example, Costa Rica has become a well-known spot for iGaming operators because of its relatively relaxed stance. The country doesn’t issue specific licenses for online gambling but allows companies to run as long as they don’t target local players. This has made it attractive for businesses looking to serve international markets.

In contrast, Panama offers a more defined regulatory structure. The Panama Gaming Control Board issues licenses to operators that meet certain criteria, making the country a preferred location for operators who want a more official stamp of approval.

So, while the region doesn't have one unified approach to iGaming, countries like Costa Rica and Panama play key roles in providing options for both low-regulation and more structured setups.

How is iGaming regulated in South America?

The situation in South America is much like that of Central America. Some countries, like Argentina and Colombia, have strict and structured legal frameworks. Argentina, for example, leaves it up to individual provinces to regulate online gambling.

In Buenos Aires, operators are required to hold a license and adhere to strict guidelines on responsible gaming.

Meanwhile, Colombia was one of the first countries in Latin America to fully regulate iGaming. The Colombian Gaming Authority (Coljuegos) grants licenses to operators, ensuring they comply with local laws and player protections.

Brazil, on the other hand, is still developing its regulations, but there's been a big push to legalize and regulate online gambling in recent years.

How is iGaming regulated in Africa?

iGaming regulation in Africa varies significantly across the continent. South Africa is one of the more established markets, where online sports betting is legal and regulated by the National Gambling Board. However, online casinos remain illegal, with strict rules against operators targeting South African players.

Kenya, on the other hand, has embraced iGaming more openly. The Betting Control and Licensing Board (BCLB) oversees the industry, issuing licenses to operators that meet their requirements. However, taxation and regulatory shifts have created challenges for operators in recent years, with new tax laws impacting both players and platforms.

In contrast, other African nations like Nigeria and Ghana are still developing their regulatory frameworks. While online gambling is generally allowed, there is limited oversight, and operators often function in a grey area.

How do iGaming Businesses Stay Compliant?

Getting licensed to operate in any region is one thing, but staying compliant in the iGaming business is no easy feat. A slight misinterpretation of laws or noncompliance can lead to a license revoke. At the heart of compliance is obtaining the necessary licenses from relevant jurisdictions.

Staying on the straight and narrow with the laws of any jurisdiction will involve adhering to strict standards for player safety, fair play, and responsible gambling at its center. Compliance also extends to Know Your Customer (KYC) processes, where operators are required to verify the identity of their users to prevent fraud and money laundering.

Most jurisdictions mandate that iGaming companies perform KYC checks before allowing players to deposit or withdraw funds. Anti-money laundering (AML) policies are also key, as operators must ensure that gambling platforms aren’t being used for illegal financial activities.

Who are the Major Players in the Online Gambling Market?

The online gambling industry is powered by a mix of companies, each playing a unique role in keeping the market running smoothly. From the creators of your favorite games to the operators managing the platforms and advertising network, here’s a look at the key players shaping the space:

• Software Providers: These are the folks behind the games you play. Big names like Microgaming, NetEnt, and Playtech have been driving innovation for years, offering everything from slots to table games that keep players coming back.
• Game Developers: You’ve probably heard of Evolution Gaming for their live dealer games or Pragmatic Play for their colorful slot titles. These companies are constantly pushing the envelope in terms of creativity and gameplay features.
• Betting Operators: Platforms like Bet365, DraftKings, and FanDuel handle the sports betting side of things, offering players an all-in-one experience, whether they’re placing bets on football or enjoying a few rounds of poker.
• Payment Processors: Without secure transactions, iGaming wouldn’t work. Payment solutions like PayPal, Skrill, and Neteller ensure that players can move their money quickly and safely.
• Affiliate Platforms: Many operators rely on affiliate marketing to bring in new players. Platforms like Income Access and Better Collective help connect these operators with affiliates to expand their reach.
• Advertising Networks: Advertising is crucial for iGaming platforms, and networks like Blockchain-Ads use cutting-edge blockchain technology to help companies create targeted campaigns that connect with the right audience.

What are the marketing strategies for success in iGaming?

Success in iGaming isn’t just about having the best games or sleek platforms. Marketing plays a massive role in standing out in this competitive industry. From leveraging affiliate marketing to using advanced ad networks, here are some strategies that can help drive success:

• Affiliate Marketing: This is one of the most powerful tools in iGaming. Operators partner with affiliates who promote their platform, earning commissions for every player they bring in. This creates a win-win relationship and drives traffic from dedicated audiences.
• Search Engine Optimization (SEO): Ranking high on search engines like Google is crucial. iGaming sites that focus on SEO—through keyword optimization, content creation, and technical improvements—get organic traffic from users actively searching for their services.
• Ad Networks: Networks like Blockchain-Ads are becoming essential for iGaming operators. These platforms allow targeted advertising using blockchain tech, ensuring your ads reach the right audience with greater transparency and efficiency.
• Pay-Per-Click (PPC) Advertising: Platforms like Google and Facebook allow operators to target specific demographics through PPC campaigns. This can generate immediate traffic, though it requires careful budget management to ensure it’s cost-effective.
• Influencer Partnerships: More brands are turning to influencers in the gaming world to promote their services. By partnering with influencers who have large followings, operators can reach a dedicated audience of potential players.
• Retargeting: Often, potential customers visit a site but don’t sign up immediately. Retargeting ads allow operators to remind these users about the platform, encouraging them to come back and complete their registration.
• Email Marketing: With carefully crafted email campaigns, operators can stay connected to their players, promoting new games, bonuses, and offers while building customer loyalty.
• Social Media Marketing: Platforms like Twitter, Facebook, and Instagram aren’t just for ads. They allow operators to engage with players, share content, and build a community, creating brand loyalty over time.

What is the future of the iGaming industry?

The future of the iGaming sector is promising, with several key trends driving its growth. Projections show the market is on track to exceed $100 billion in the next decade, thanks to continuous technological advancements and the expansion into new regions like Latin America, Asia, and Africa. These are some of the ways the future is getting shaped already:

• Virtual reality: VR is gaining attention as platforms experiment with offering fully immersive gaming experiences. While VR casinos are still in the early stages, we’re seeing some platforms begin to roll out interactive environments where players can engage with games like poker and slots in a virtual casino setting.
• Blockchain technology: Since crypto became a thing, blockchain technology has been making waves in the industry. Cryptocurrencies are slowly replacing fiat for those who prefer to play anonymously and enjoy faster payments.  
• AI: Another exciting area is the use of artificial intelligence to personalize gaming experiences. AI helps operators analyze player behavior to offer tailored promotions, bonuses, and even custom game suggestions.
• Mobile gaming: While VR is great, mobile gaming remains dominant, especially with the rise of 5G networks. Players now have more access to high-quality gaming on the go, with mobile-first platforms leading the way.

All of these innovations are yet to reach their full potential, and newer ones are set to roll out sooner than we expect. This indicates endless possibilities for the online gambling industry globally as time passes.

Final Thoughts

Diverse regulations, innovative gaming categories, and powerful marketing strategies shape iGaming’s growth. Operators will need to keep up with regulations and leverage smart options like ad networks to help them stay compliant even as they promote their services.

Considering how the sports betting, online casino gaming, and sweepstakes verticals are growing side by side, the industry is set to continuously advance. Overall, we should see more regulated markets and fewer legal grey areas in the coming years.