These days, online gambling is seemingly everywhere you look. Ads for online casinos are popping up all over social networks, sports betting companies are sponsoring big soccer clubs and international tournaments, mobile app marketplaces are teeming with new slot games… The iGaming industry has clearly broken into the mainstream and is poised to penetrate the public space that wasn’t always open to it.

This development may come as a surprise to those who didn’t pay attention to the changes within the industry. The following retrospective will shed some light on this process that unfolded over the last 25 years and was driven by multiple macro factors.

The Roots of the iGaming Industry

Ever since computers were invented, we used them to play games. It didn’t take very long for classic casino games and sports wagers to be replicated in the digital space. The invention of the internet in the early 1990s made it possible to compete against others remotely, leading to the creation of first online casinos and sportsbooks. The idea was an instant success, but in the early years its reach remained limited to a narrow circle of technology enthusiasts. The rest of the world was mostly unaware of this nascent industry and continued to use land-based gambling establishments. To be fair, online gambling wasn’t too convenient at the time and required a lot of patience as the websites were prone to crashing, the internet was painstakingly slow, and electronic money transfers were complicated.

How Internet 2.0 Affected Online Gambling

The arrival of fast broadband internet changed the fortunes of the iGaming industry in a big way. For one, the percentage of the population with internet access dramatically increased so the pool of potential players was much wider. The quality of the product was much higher as designers were less concerned with loading speeds, and the scope of available games greatly diversified. Perhaps most importantly, digital services for sending and receiving money appeared and removed a major obstacle to participation in online games of chance. This was a period of intense innovation and gambling websites were among the beneficiaries of the evolving online landscape. The market became more profitable and the first successful iGaming companies emerged – some of which are still active today. Online gambling also started attracting more publicity and shedding the reputation of a shady activity that was originally associated with it.

Rapid Proliferation in the Age of Social Media

Just when iGaming was gaining steam, another technological breakthrough made the conditions more favourable for its growth. Social networks enabled websites to advertise their services directly to the most interested customers and made it possible for the players to recommend the highest payout online casinos to their friends. This made it easier for smaller websites to build their reputations quickly and challenge the established providers for a piece of the market. A competitive environment of this kind inevitably benefited the players, as online casinos were outdoing each other by offering huge welcome bonuses, loyalty programs, real-life gifts and other perks. At the same time, fraudulent actors were being publically called out and were gradually pushed to the margins of the industry. The end result was that gaming became better, safer, and more convenient.

Regulated Industry with a Rising Global Footprint

Over the past decade, it became evident that iGaming is a major form of entertainment with staying power. Maturation of the market brought a turn towards sustainability, and top game developers and online casinos started thinking as legacy brands. This was necessary in an environment that was becoming more strictly regulated and aware of the negative sides of gambling. Financial transparency and responsible gambling became priorities, helping to reduce money laundering and gambling addiction which have long held back the industry. The market has also decentralised to a considerable degree, with players from all over the world participating in online games. This forced the providers to pay more attention to localisation and customisation, once again raising the level of service for the end user. In recent years, technologies such as cryptocurrencies and artificial intelligence are opening new possibilities for delivering a personalised experience while protecting the privacy of players.

Can iGaming Maintain this Pace into the Future?

After a long period of sustained growth, the industry looks very stable but some threats still remain. Popularity of online gambling has never been higher, to the point that it may be a little too much for its own good. Nearly universal presence of online gambling is drawing a lot of attention, shining a spotlight on some of the unresolved issues. This in turn may trigger tougher regulatory action in many countries that previously had very liberal laws. Barring an unexpected global economic collapse or total bans in major markets, the iGaming industry is probably safe from any unexpected failures. Current forecasts predict a moderate rate of growth for the rest of this decade, while some countries have even more optimistic outlooks. With vast resources at their disposal and an enthusiastic customer base, top iGaming companies are perfectly positioned to take online gambling into the next era of prosperity.