Revenue in the online gambling market is projected to reach $100.90 billion in 2024, according to Statista, and grow at an annual compounded rate of over 6.2% in the coming five years to $136.3 billion by 2029. The number of iGaming market users is expected to reach 281.3 million over the same period.
Many of the innovations that lead the transformation in the global technology industry also shape the change in the iGaming sector. Let us briefly review how they are shaping the future of iGaming.
Broader Use of Augmented Reality (AR) and Virtual Reality (VR) Technologies
Virtual reality (VR) uses a headset to place you in a computer-generated world that you can explore and interact with. Augmented Reality (AR) technology overlays digitally-created content onto the real world, providing an enhanced or "augmented"experience. AR uses either a clear visor or smartphone to layer digital images on the real world around you instead of transporting you to a virtual world.
Revenue from mobile AR is forecast to rise from $12.45 billion in 2021 to $21.03 billion in 2024, according to a report by G2. Conversion rates are found to be 40% higher with AR, with experts attributing it to AR providing an interactive and visually engaging experience.
Gaming is the most favored application of AR, and 38% of users express the need for advancements in AR to make gameplay more engaging. And 26% of all smartphones support AR. A straightforward application of AR in sporting events like matches, like current use of AR in poker, as well as racetracks, can elevate engagement levels and increase enjoyment from these events.
Applying virtual reality technology in building VR casinos with their own customized 3D virtual avatars will enable bettors to create a unique and unforgettable user experience. It can transport players into virtual realms of iGaming tailored to their individual preferences and personalities where they can walk around freely, communicate with other players and play games.
Broader Integration of Artificial Intelligence (AI) and Machine Learning (ML)
Overwhelming majority of iGaming industry experts agree that Artificial Intelligence and Machine Learning will play a decisive role in advancements in the iGaming sector, according to the SOFTSWISS survey. They mention tasks like:
- helping personalize gaming by analyzing players’ behavior and recommending the most suitable games
- changing the difficulty of games based on a player’s performance, and
- adjusting the incentives offered based on actual player demand.
as areas that AI and ML will perform to increase gamers’ engagement and hence increase player retention.
Another area experts mention is customer support. AI and ML can be successfully used to streamline sports betting platforms’ customer service by driving chatbots and virtual assistants as they provide instant responses to queries, assist in troubleshooting, and guide users through the gaming platform.
Expansion of 5G Mobile Gaming and Progressive Web Apps
Another major technology that revolutionizes the iGaming industry is the 5G technology. Faster speeds and reduced latency of the fifth generation of mobile network are the two specific technological improvements that significantly impact mobile gaming by enabling immersive experiences. Plainly speaking, 5G technology facilitates real-time interaction and collaboration in virtual environments without delays - which was not previously possible.
Live casino games and sporting events can now be hosted on powerful servers in data centers from where video and audio can be streamed to devices in real time.
There are studies which estimate that Casinos were the second most popular gaming genre with about 18.9% share of $139.70 billion of total revenue generated by the mobile gaming industry globally in 2021.
Progressive Web Apps (PWAs) are applications that you build by using web technologies that can be installed and can run on all devices, from one codebase. PWAs are becoming increasingly popular in the mobile gaming industry since they provide native-like experiences and enhanced user experience.
PWAs have been employed by several iGaming leaders as they help with three critical tasks:
- boost transactions at minimal fees,
- offer better odds and returns to players as well as
provide privacy and anonymity.
The wider adoption of 5G technology and Progressive Web Apps are transforming the landscape for mobile gaming as they help build a more dynamic and accessible environment within the iGaming industry. Enhanced user experiences and improved connectivity they generate is driving the exploration of innovative gaming possibilities.
Broader Usage of WebRTC Real-time Streaming
Web Real-Time Communication (WebRTC) is a new open-source standard and industry effort. WebRTC provides software developers with application programming interfaces (APIs) allowing the creation of real time communications between internet web browsers and mobile applications without worrying about compatibility and support for audio-, video- or text-based content.
An obvious advantage of WebRTC usage is the improvement in the live online casino experience as it enables casino operators to stream video content almost in real time.
Multiview camera angles have become a standard feature in various areas of iGaming. The multiple camera angles provide three to five distinct perspectives in live streams, like casino games. Players can easily switch between camera angles or watch multiple games simultaneously on one screen in live betting sports applications. WebRTC makes this possible.
WebRTC technology is used also to implement peer-to-peer multiplayer games by passing data back and forth between players and servers in real time.
Adding voice and video to existing gaming platforms of small to mid-sized gaming companies via WebRTC has transformed radially the iGaming industry. For bettors who need instant and precise data to continuously adjust their strategies, WebRTC has provided the solution for high-quality streaming and real-time interaction.
Inclusion of Social Interaction Features in iGaming
Developers have found that immersive social interaction features help create more engaging and exciting gambling experiences. By providing players with a sense of community and social interaction, they lead to more satisfying online experiences. This way these features help increase player engagement and retention.
Features like chat systems, interactive live streams, friend lists and leaderboards help transform the solitary gaming experience into a social interaction experience. Chatting when competing with fellow players adds excitement, making the gaming experience more enjoyable.
Players can interact with others, creating a sense of community and making the gaming experience even more entertaining. This not only adds to the fun that one derives from the games but also gives players an additional reason to come back for continuing the engaging interaction with other players.
Broader Usage of Cryptocurrencies and Blockchain in iGaming
Cryptocurrencies and blockchain technologies are gaining wider adoption globally which affects the iGaming industry too. Crypto betting accounted for 30% of total betting in iGaming in Q1 2023 – up 19% compared to Q1 2022, according to a SOFTSWISS study. And about two-third of total crypto betting – 64%, was done from mobile devices, and only 32% from stationary devices.
Read about Crypto Gambling in 2024
Blockchain technology and cryptocurrencies can help businesses lower their costs and increase transactions due to lower processing fees associated with them. They can also provide enhanced privacy and anonymity which helps sports betting platforms to offer better odds and return to players.
Wider acceptance of cryptocurrency bets will also let businesses expand their customer base to a vast global audience of crypto users: there were 420 million crypto users worldwide in 2023, according to TripleA.
In Conclusion
It is evident that most of the trends discussed in this article guide sports betting platform providers in the direction of enhancing players’ engagement and satisfaction. It is remarkable how modern technological innovations drive the iGaming industry transformation to meet and exceed player expectations.
