MENU
CONTACT US

What is iGaming? The Meaning and Evolution of Online Betting

  • Updated: June 30, 2025


Wagering in an online slot or placing a bet on the outcome of a sports event is a popular pastime and sometimes a beloved hobby in many countries. Since the development of technology and the internet, this activity naturally transitioned online. The online gambling market is constantly evolving with web technologies. It is this link between online technology and recreation that has led it to be designated as iGaming.

The success of this industry largely depends on taking the casino out of the slot hall and bringing it to the player, at their fingertips whenever they want it.

Curious to learn what is iGaming and how it’s shaping the future of entertainment? Our analysis covers everything from its origins to the latest industry trends. Ready to become an expert on the iGaming sector? Let’s get started!

What Does iGaming Mean

The rise in online casinos and sports betting has led many to ask, 'What is iGaming?' In simple terms, it encompasses all forms of online betting and gaming activities that use Internet technology. However, the iGaming sector can be understood in both a narrow and a broad sense.

iGaming involves online betting via electronic means.


In the narrow sense, the meaning of iGaming refers specifically to online betting on the outcome of games of chance using electronic means, which is why we say the ‘i’ in iGaming stands for internet.

But if iGaming is making a bet using the internet, then it also falls into the broader concept of gambling, which, in turn, covers a whole range of games, such as casinos, sports betting, sweepstakes, lottery, bingo and card games.  

If we use the term broadly, the meaning of iGaming encompasses an industry that spans multiple online verticals and the various entities within these verticals.

For example, a company that develops games software for online casinos (a game provider, if you will) is part of the broader iGaming market. Similarly, gambling software platforms developer, such as SOFTSWISS, falls into the category of iGaming software suppliers.

In contrast to games of chance, the outcome of which is strongly influenced by RNG or fortune, there are so-called games of skill.

What Is RNG in iGaming?
What Is iGaming? | SOFTSWISS What Is RNG in iGaming?
RNG is the enigmatic mathematics behind games of chance. Discover how it operates.


The former includes online casinos, online sports betting, sweepstakes, online lotteries, bingo, fantasy sports and eSports. The latter include card games (poker, blackjack, bridge, etc.), as well as chess, backgammon and other games in which the result depends more on the mental skill of the player than on chance.

There is some lack of clarity in the iGaming industry about whether games of skill should be included in the broader definition. You will definitely meet both parties at iGaming events.

How iGaming Started

The iGaming sector has grown rapidly due to urbanisation, technological advancements, and the popularisation of the internet. Below we describe the major events that have shaped the online gambling industry since its inception.

Evolution of iGaming

1994 – the government of the Caribbean nation of Antigua and Barbuda adopted the Free Trade & Processing Zone Act, which allowed the issuance of licences to companies aimed at opening an online casino.

1996 – the Kahnawake Gaming Commission (KGC) created. Its main activity was the licensing of online casinos around the world. In 1996, there were only 15 gambling sites, but only a year later there were already 200.

1997 – the rapid growth of the industry attracted the attention of legislators. After much deliberation, the US Senate finally passed the internet Gambling Prohibition Act in 2006, which made it illegal to promote and sell gambling goods and services to the public. However, a few years ago, this Act was repealed and reviewed. US states now decide on their own rules at the state level.

2005 – the United Kingdom created the Gambling Act, which established the Gambling Commission to oversee all gambling and made it possible for gambling sites to operate legally.

2013 – SOFTSWISS made its first foray into the iGaming market with its Online Casino Platform.


Who is Who in IGaming?

It is easy to mix up the terms that are used to describe the key actors of the iGaming industry. Below we provide a short classification of the most crucial terms used to refer to the key players in the industry.

iGaming Operator

What Is iGaming? | SOFTSWISS

iGaming operator – a person in charge of an iGaming business, who runs daily operations and marketing, offering online wagering to end users.


iGaming Supplier (vendor)

What Is iGaming? | SOFTSWISS

Suppliers – a company that develops and sells the software (platform, games, odds, etc.) to operators who then use it to power their online brands. These are most often referred to as B2B iGaming software suppliers, also commonly known as B2B providers (not to be mixed up with game providers).


Game Providers

What Is iGaming? | SOFTSWISS

Game provider – also called a game studio, a company that develops the interactive video game content that is added to online casinos. These are video slots, card games, crash games, and other genres of RNG and live dealer game content.


Players

What Is iGaming? | SOFTSWISS

Player – the end user (customer) of an operator's site (online casino or sportsbook). Players make bets in the games developed by game providers that are hosted on the operator's website.


Affiliates

What Is iGaming? | SOFTSWISS

Affiliate – webmasters and site owners who host promotional materials that encourage players to register and play at online gambling sites. Affiliates receive a commission based on the performance of the players they help the operator acquire.


iGaming Regulation Worldwide

What Is iGaming? | SOFTSWISS.

In many countries around the world, the activities of online gambling operators are legal and regulated by the state. In Europe, such countries include Bulgaria, the Czech Republic, Estonia, Germany, Greece, Latvia, Romania, Sweden, the Netherlands, and others.

Such geographical markets are often referred to as regulated markets and require local licences. Similar to land-based gambling, online gambling providers must be licensed to offer services to players in a particular country.

In Lithuania for example, online operators must hold a certain number of active land-based gambling venues in the country before they are allowed to run an online gambling website.

Some countries might in fact ban online gambling entirely, like Israel. Other countries might neither allow, nor prohibit online casinos. The Netherlands is one example of a country that, until October 2021, had no bans or regulation for iGaming. When legislation finally appeared it became a regulated market, where online casinos were recognised and regulated by law.

Whether online wagering is legal in a certain country or prohibited largely depends on the laws of any given country.

The iGaming Industry Today

The COVID-19 pandemic greatly impacted the gambling industry internationally. Land-based casinos, bookmakers, and gambling halls were closed, and sporting events in which players could bet were suspended. This situation contributed to a sharp increase in demand for online gambling.

In 2021 alone, the global online gambling market was estimated at over USD 70 billion. In 2025 that number was estimated at USD 100 billion.

Mobile technology allows the iGaming sector to become more attractive to players than traditional brick-and-mortar casinos. Players can choose from an assortment of themes, cutting-edge graphics, animations, and up-to-date soundtracks.

Far before COVID-19, the market was stimulated by the growing popularity of smartphones with improved internet access. The number of mobile devices continues to rise worldwide.

softswiss-logo-3d-450x400
Report
iGaming Trends 2025
Unlock the future of iGaming with our trends report. Discover the industry's latest developments and upcoming opportunities for success.


Prospects of the iGaming Industry

There are more and more technologies that influence the promising growth of the online gambling market in the near future. Let’s take a closer look at each one.

Blockchain technology

There are two types of online casinos that use blockchain technology: a crypto casino with the integration of crypto payment systems and another one based directly on the blockchain.

In the first case, the online casino accepts cryptocurrencies such as Ethereum (ETH), Litecoin (LTC), and Bitcoin (BTC), on par with fiat currencies for deposits and withdrawals. This is usually made possible via an integration with a crypto payment method.

In the case of a blockchain casino, crypto transactions occur without intermediaries, directly between the player’s crypto wallet and the blockchain via the game.

Blockchain records the game results and makes it impossible to influence them. It also provides anonymity since no personal information is required when registering a user account at the casino.

Using blockchain technology in the online gambling industry offers multiple advantages. Withdrawals are processed almost instantly without delays to start betting.

In addition, iGaming operators working with cryptocurrencies offer the lowest commissions for depositing and withdrawing funds due to the lack of intermediaries and the decentralisation of transactions.

Streaming and social media

What Is iGaming? | SOFTSWISS

Streaming gives users the opportunity to watch their favourite streamer wager in real time and live the highlights of the game with them. Streamers also try to make the broadcast spectacular, so they choose slots with frequent bonuses and generous payouts and do not skimp on emotions during the broadcast.

All this attracts user traffic to the online casino or sportsbook, especially if the given operator and the specific streamer are partners. The streamer places on their webpage useful information for players, for example, operator rating indicators, interspersed with banners and links to the partner casino site.

Not every streaming platform encourages gambling ads. For example, in 2021 clips and broadcasts on the Twitch platform that featured promotional codes and referral links to gambling sites were banned. The platform ordered streamers to remove such content. However, casino streaming is not entirely gone from Twitch. Other streaming platforms dedicated to online casinos and sports betting, like Kick, are also on the rise.

Gamification

To attract a young audience and maintain the level of interest in the game, online casinos add elements of gamification to the gameplay. Gamification is the addition of additional engagement and loyalty opportunities inherent to the video game industry. This can include character selection, quests, level rewards, and much more.

Types of iGaming

Gamification allows an operator to increase player retention rates through player motivation. Depending on the choice of mechanics or gamification tool, the operator satisfies the different needs of the players.

For example, the organisation of tournaments gives a player the opportunity to compete and become the first among others. The most successful gamblers are displayed on the leaderboard and receive a variety of bonuses from the online casino.

Character selection allows the player to add personal preferences to the game, which affects their involvement and interest in the gameplay.

Quests are fun and interesting missions that become more challenging from level to level. For the successful completion of quests, the player receives a prize, maintaining satisfaction and the desire to continue the game.

Game graphics and 5G

Currently, HTML5 is widely used to create slot games. HTML5 slots offer players fast-loading low-size games that work across all platforms. However, HTML5 is not the only engine that is used to develop slot games. More and more attention is paid to Unity, a game engine for developing 3D game content popular across mobile gaming and desktop gaming at large.

Download speeds directly affect game loading times. The solution comes in the form of 5G technology. Though this is something largely outside the scope of an iGaming operator and more in the hands of players, 5G is one way to make your casino or sports betting experience much smoother as a player.

iGaming is an Industry

Many factors have influenced the development of iGaming, including the COVID-19 pandemic, forced lockdowns, advances in mobile technology and handheld devices, and the rise of live streaming platforms.

The iGaming sector draws professionals with backgrounds in computer science, mathematics, and game design. It's not uncommon to see executives who have worked with big brands, from Coca-Cola to Netflix.

iGaming is not just an online copy of the brick-and-mortar brands, though there are examples of this shift to online by big-name offline brands. The iGaming industry is constantly developing on par with information, blockchain, and mobile technology. If any of these sound familiar to you then you are likely to have brushed against iGaming at one point or another.

What Is iGaming? | SOFTSWISS
How do you like this article?
Share This Article
Useful Articles
Back to Knowledge Base