iGaming Meaning
iGaming is any online gambling that occurs on the Internet. This involves sports betting, online casinos, virtual poker, lotteries, etc. iGaming websites let gamblers play RNG-based games or enjoy real-time shows with dealers.
What Is iGaming?
iGaming is any type of online gambling activity. Such activities are organized via the Internet and held to let users enjoy classic casino games but in online mode and possibly win some money. To help you to understand the iGaming meaning better, we have created a list with examples:
Regulation of the iGaming Industry
Now, you know what iGaming is, so the next question is how the industry is regulated. iGaming is legal in many countries, and local or international authorities control it. Numerous regulatory bodies aim to guarantee fair play, protect gamblers, and prevent money laundering and fraud.
Nonetheless, not all jurisdictions allow gambling, and you need to check this information before planning an iGaming business. We have created a table with regions and legal statuses for gambling there.
| Region | Legal Status | Regulatory Bodies |
|---|---|---|
| USA | It depends on the state. Online gambling is legal in 19 states, including Nevada, Pennsylvania, Michigan, Iowa, Colorado, and others. Prohibited in Utah, Alaska, Georgia, and Hawaii. | Each state has its own regulator, like the Nevada Gaming Control Board, New Jersey Division of Gaming Enforcement, etc. |
| Europe | Mostly legal, except for Kosovo, Albania, Norway, Poland, and Turkey. | Depends on the country’s law. The UK Gambling Commission, ARJEL, and Malta Gambling Commission are the most popular. |
| South America | It is legal in Argentina, Colombia, and Paraguay. Online sports betting and horse racing are legal in Brazil. iGaming is banned in Ecuador, Chile, and Peru. | Lotería Nacional (Argentina), Coljuegos (Colombia). |
| Middle East | Illegal in Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Bahrain, Iraq, Yemen, Iran, Oman, and Jordan. Partially legal in Lebanon, Egypt, and Israel. | N/A |
| Japan | Online casinos are prohibited but sports betting and lotteries are allowed. | Japan Racing Association |
| Canada | Legal, but the nuances in regulations differ depending on the province. | AGCO (Ontario), Kahnawake Gaming Commission, etc. |
| Australia | Online casinos are banned. Sports betting websites are allowed. | Australian Communications and Media Authority (ACMA) |
| India | States with legalized gambling are: Nagaland, Goa, and Sikkim. Regions where online gambling is banned are Maharashtra, Karnataka, and Tamil Nadu. | Each state’s government regulates online gambling. |
| China | Illegal, except for government lotteries. | Chinese Ministry of Finance |
iGaming Licensing
If you want to join the iGaming sphere legally in any of the regions mentioned above, you must obtain an official license from the particular regulator. An iGaming license is a permit issued by a gambling authority that enables businesses to offer casino games, sports betting, and other iGaming services legally.
Keep in mind that there are two types of Gaming licenses: B2B and B2C. The B2C license suits operators who wish to offer online gambling services directly to users. This permit is a good call for online casinos, poker rooms, and sports betting websites. In contrast, a B2B license is issued for gambling companies that provide their services or products to other businesses. This permit suits software providers, casino game developers, white-label platforms, etc.
But why gambling licenses are so necessary? Here is a list of the main reasons:
- Compliance with laws. Licenses ensure your gambling business works according to the legal frameworks. The legal operation of an iGaming casino or sports betting website is a guarantee of no penalties or shutdowns.
- More payment methods. Well-known payment providers and banks require gambling companies to have special activity permits.
- Gambler trust. Users prefer licensed iGaming platforms since they ensure safety and credibility.
If you decide to receive a license for your iGaming business, you must go through several stages. Based on our experience in obtaining licenses for our clients in numerous jurisdictions, we describe all the steps of this legal procedure below:
- Choosing the region. This stage includes picking the territory to provide online gambling activities according to the rules of the local regulator. For example, in most cases, the Curaçao Gambling Control Board processes license applications quickly. Nonetheless, the Malta Gambling Authority, the Isle of Man, and others are considered more reputable regulators.
- Document preparation. The list includes documents proving your financial stability, the company’s business plan, AML and RNG certificates, and more.
- Paying licensing fees. The sum depends on the selected regulator, the license type, your business size, and additional services you may want to receive (like nominal director, office rental, etc.).
- Passing the verification. The regulator checks the received information and issues the desired license if all the conditions are met.
Do not forget to check the gambling license term to renew it in time, saving your money and continuing your business on a legal basis.
How Legal Pilot Can Help With Starting an iGaming Business
As you can see, the licensing procedure is challenging and includes several stages. You should not only understand what iGaming is, but also have a profound legal base to receive a permit quickly. However, you can delegate all legal obligations to our team. Our legal expertise will be invaluable if you want to launch or expand your online casino or sports betting platform.
Legal Pilot specialists will assist you in setting up your iGaming company, selecting the appropriate jurisdictions, and identifying the most suitable regulator. We will guide you through the licensing process, ensuring all necessary documents are correctly prepared. Our lawyers have received licenses for over 100 clients, collecting invaluable experience. If you need professional assistance, contact us, and we will help you legally join the iGaming industry as quickly as possible.
How the iGaming Industry Started
We have fully explained what iGaming is, but how did it start? Our team has analyzed the iGaming history and created a table with timelines of the crucial events in the industry.
| Time Frames | Significant Events |
|---|---|
| 1994 | In 1994, the first iGaming platform was created. The website sold online public ticketing for the International Lottery in Liechtenstein. The same year, the Caribbean nation of Antigua and Barbuda presented the Free Trade & Processing Zone Act. It allowed online gambling operators to receive a license for their activities. |
| 1996 | In 1996, the Kahnawake Gaming Commission was founded in Canada. The main task of this organization was to oversee the online gambling sector. Plus, it sets regulatory standards and grants licenses to iGaming operators. |
| 2000-2010 | In this decade, the online gambling industry has had huge advancements. Since the Internet was booming, technologies improved, more people had PCs, and the iGaming area got new users. In 2003, the 888.com website was created, the first licensed online casino in the US. By 2010, the number of gamblers involved in the industry doubled year by year. |
| 2010-2020 | During this period, iGaming became an independent market. The industry became more controlled and manageable. |
| 2020 – our days | Online gambling has become legal in a bunch of developed countries, including the UK, Canada, Sweden, Belgium, Denmark, Netherlands, Spain, Italy, France, Switzerland, etc.iGaming continues growing, providing plenty of opportunities for businesses and players. The industry is more regulated and secure and implements new technological trends (like blockchain). |
Prospects of the iGaming Industry
iGaming continues to grow, providing different trends like social media streaming, blockchain technology, gamification, and more. Let’s discuss all these tendencies below.
Blockchain Technology
Blockchain technology revolutionizes iGaming by providing transparency, enhanced security, and fast online transactions with no or low fees. In the future, we will see more crypto-friendly gambling websites. This also will enable players from banned regions to use gambling platforms.
Streaming and Social Media
Not only online gambling will be popular in the future, but also watching others play in casinos. The number of streamers in the iGaming area continues to increase. For instance, in 2023, Kick streamer Roshtein hosted the most top-rated casino and slot channel, generating around 14 million hours of watched content in real-time. Moreover, online casinos and sports betting websites cooperate with social media influencers to grow their popularity. This tendency will flourish in the future as well.
Gamification
As competition in the industry continues to heat up, online casinos and sports betting sites will push to innovate and stand out. Gamification will be a key strategy for attracting players. Online gambling platforms may introduce interactive quests, provide exciting rewards, and even let users customize game themes and music for a more immersive experience!
Game Graphics and 5G
We cannot imagine the future of the iGaming sphere without high-end game graphics and 5G connectivity. Therefore, casino game developers will use advanced animations for more realistic visual effects and photorealistic texture for ultra-detailed design. On top of that, casino games will receive more VR & AR enhancements for hyperrealistic experiences. Additionally, 5G networks will revolutionize the area as well. Players may count on seamless mobile gambling and smoother gameplay.
FAQ
iGaming websites provide sports betting, casino games, poker, lotteries, etc. These platforms allow users to play online, enjoying RNG-based games or real-time gambling with dealers.
Sports betting websites, online casinos, and virtual poker rooms are examples of iGaming.
Gambling is a term that unites all types of money wagering on games based on chance (both land-based and online options). The meaning of iGaming refers only to online gambling activities (online bookmakers, casino websites, etc.).
