Milestones of iGaming sector development: how do we get there
Gambling was around at every stage of human civilization. Despite the high risks associated with the industry and not always clear position of authorities, gambling has attracted luck seekers at every century. The modern world is not an exception either: gambling business feels more confident than ever in new era of technological advancement, particularly because of the internet, as well as the legalization of gambling in various countries. The integration of digital technologies into this industry has led to the emergence of online casinos, complementing traditional land-based gambling houses.
Gambling Business: first steps into the virtual space
Traditional gambling business peaked by the end of the 20th century, predictably opposed the rise of internet casinos, fearing significant financial losses. This initially forced gambling websites to operate in the gray zone. However, in 1994, Antigua and Barbuda enacted the Free Trade and Processing Act, which included provisions for licensing online casinos. This move was soon followed by neighboring island nations, making the Caribbean region first in legalizing iGaming sector. To this day, Curaçao, an island in the Caribbean, remains one of the most popular licensors. Other notable jurisdictions in the region include Costa Rica, Dominican Republic, and Belize.
One of the first companies to use this opportunity was Microgaming, developers of casino software well-versed in gambling business. Microgaming is recognized as a pioneer of the virtual gambling, having created the first online product in the 1990s. Playtech is also regarded as a founding member of the industry. They established an online casino in the 90s and continue to operate successful international projects today.
In 1996, the Kahnawake Gaming Commission was established in the Mohawk Territory of Kahnawake, near Montreal, Canada. By the end of that year, its first 15 online casinos were open in the internet.
A year later, the first website accepting sports bets was launched, and within another year, virtual gambling had spread to other companies' offerings. By early 1998, a real boom in the gambling industry has started: the number of online casinos, sports betting, and poker sites with annual revenues exceeding a billion dollars surpassed 200. The number of developers creating software for virtual gaming portals also grew.
Visa was the first to support online portals, offering the payments using its card scheme. Soon, other financial industry representatives began collaborating with gambling websites; nowadays, gambling stimulates fintech development, demonstrating an unprecedented demand for payment services. The diversity of financial services is so vast that it's crucial to carefully choose partners for processing a gambling transaction effectively and within budget.
Monoup team, combining experience in iGaming and fintech, knows exactly how to create an optimal structure.
Today, the market boasts over 6,000 websites, which are expected to close 2023 reaching volume of nearly 100 billion dollars. The prospects and capacity of the industry are growing year by year. At the same time, the number of changes it has undergone in such a short period speaks of instability associated with online gambling. One thing is certain — casinos will never disappear; they will continue to transform according to demands of society.
What difference online casinos make
An online casino is a unique entertainment platform offering a vast selection of cash wager games. These include not only traditional games like roulette or slots and others transitioned from physical to virtual space. The online gambling constantly releases new games and types, some of which are quite different from classic slots.
Over time, the popularity of online gambling has grown mostly because its unique features:
- Presentation and rules of games - even those based on classics (like blackjack, poker, roulette) become truly magical in the hands of a skilled creator.
- Original graphics, atmosphere in game world, interesting characters with their own backstories woven into the gameplay. For instance, Zeus throwing lightning bolts in Gates of Olympus, legendary western heroes like those in Tombstone, or the witch from Book of Shadows. Many games are recognizable due to the graphic style of their developers.
- No need to search for a reliable casino or pass a face control — just turn on your computer or phone, launch an online portal, and place a bet.
- The ability to play from anywhere in the world with just internet access.
Eventually, gambling business has entered a new stage of its development by going online. The real explosion of online gambling occurred in 2020 when land-based casinos were closed for quarantine. However, even after the pandemic, they didn’t lose their audience — even gained. Introduction of new digital technologies made them even more popular and attractive. Currently, the number of land-based entertainments exceeds online participants in the iGaming sector. We are observing whether this situation will change over time.
Gaming portals and betting websites represent a profitable industry, but it is dynamic and highly changeable. Regular technological updates and changing legislation worldwide are daily challenges requiring all participants to quickly adapt to trends and timely implement all innovations related to the gambling business in their projects. Better to do it before the competitors.
What are ESG Standards?
ESG stands for "Environmental, Social, and Governance." These standards were developed in 2015 by the United Nations General Assembly to engage companies in solving global problems related to environmental, social, and governance issues.
Socially responsible investors always check companies for compliance with ESG standards:
- Environmental: striving for rational resource consumption and reducing pollution levels;
- Social: managing relationships with employees, partners, and customers, and interacting with society;
- Corporate: managing the company itself, compensation, and shareholders' rights.
These standards equally consider the interests of all parties — investors and developers, managers and staff, society, and the environment. Compliance with ESG standards is a significant boost to a company's reputation, brand recognition, and an indicator that it invests in sustainable development.
In the gambling business, ESG policies are implemented in the following ways:
- Environmentally: by choosing modern energy-saving devices for server rooms and other hardware that consumes less electricity;
- Socially: ensuring safe play to protect against gambling addiction, safeguarding users' personal data, and creating demo versions of slots without needing to top up accounts for first-time players;
- Corporately: maintaining business and tax transparency, training staff, simplifying casino licensing, easing regulatory rules, fostering an atmosphere of healthy competition, and working with investors.
Why are these standards so important?
The answer is quite predictable.Gambling business, like many others in the 21st century, has become global. A small online casino can grow into an international corporation that inevitably impacts global agenda issues. Moreover, gambling industry, while still considered high-risk, really attracts investors. A gaming project implementing ESG policies in its operations appears more reliable and reputable, offering investors confidence in avoiding reputational risks.
Today, ESG standards are also linked to gambling licensing. One of the world's most respected licensors, Malta Gaming Authority (MGA), endorsed ESG standards and, in 2023, launched a project encouraging licensees to voluntarily demonstrate their progress in this area on a special platform for publishing reports.
The responsibility of gambling business extends to complying with these standards, particularly in preventing fraud and adhering to Anti-Money Laundering (AML) policies. The inception of gambling business on the internet occurred less than thirty years ago. In such a short period, online gambling has evolved from small illegal operations to substantial portals.
They impress with leisure variety, operate legally, and strive for ethical corporate and social policies. In turn, the governments of many countries are making reciprocal moves making operations easier. Gambling business has always been a lucrative sector so countries strive to the legal and transparent operation of casinos. This creates a steady influx of funds into state budgets through taxes, licensing fees, registration fees, and other contributions.
