iGaming Industry: The Biggest iGaming Achievement in 2022 and What to Expect in 2023

As the iGaming industry continues to expand and evolve, now is an ideal time for publishers and game developers to take advantage of the revenue growth opportunities available. At Innovecs Games, we keep track of the latest industry trends, and our blog provides insight into the accomplishments of the iGaming industry in 2022 and a preview of what to expect in 2023.

According to IMARC Group, the global online gambling market is projected to reach U.S. $133.9 Billion by 2028, exhibiting a growth rate (CAGR) of 8.5% during 2023-2028. The main driver of this growth is the increasing popularity of casino online gaming, and it is further fueled by customers’ increased spending and the potential for easier governmental regulations.

Although many industries suffered during the COVID-19 pandemic, gaming and web-based businesses saw a massive boom. The increased use of mobile platforms in the iGaming industry was one of the biggest developments in 2022. Mobile gaming has become an integral part of the iGaming experience, and more companies are investing in developing mobile-optimized versions of their games. Other developments to note from the last year are:

• Cryptocurrency is becoming increasingly accepted in the iGaming industry, with more companies allowing players to make payments and withdrawals using digital currency. This is allowing people to make transactions anonymously, and it is becoming a popular choice for iGaming companies.
• The global gaming industry registered a 10.4% CAGR in 2022, an increase from $73.42 billion in 2021 to $81.08 billion.
• Esports has been steadily growing in popularity over the last few years and it is now a major part of the iGaming industry. Esports tournaments and leagues are becoming more common, and more companies are investing in the technology to create immersive gaming experiences.

• Approximately 30% of all online gamblers are now female, and this number is steadily increasing. This suggests that women are beginning to take part in online casino activities, which is a change from the typical male-dominated brick-and-mortar casinos. This can be attributed to the growth of the online casino industry, which has likely encouraged more female involvement.
• Artificial Intelligence (AI) is being used more and more in the iGaming industry, with game developers using AI to create more engaging and intuitive gaming experiences. AI can be used to generate content, as well as to personalize and optimize gaming experiences for each player.
• Slots remain highly sought-after in the iGaming industry, due to their entertaining quality and higher payout rate compared to regular slot machines. According to Forbes, U.S. slots and table games earned a total of $43.79 billion between January and November, a 6.7% increase from the same period in 2021.

Responsible gaming has come to the forefront of the iGaming industry as more and more operators realize the importance of creating a safe and responsible playing environment for their customers.

In September 2022, several major companies came together to recommend and pledge to a 12-point list of industry standards. Martin Lycka, the Entain Senior Vice-president for American Regulatory Affairs and Responsible Gambling, said, “These principles mark an important milestone in the commitment to responsible gaming in the rapidly growing U.S. markets, as responsibility sits at the heart of our business.”

Another likely reason for the spotlight on responsible gaming practices in 2022 was the increase in scrutiny of numerous online and land-based casinos and gambling operators, resulting in record penalties, warnings, and even gambling-license suspensions. The total of financial penalties issued was $128,913,840, a 166% increase from the previous year. Media outlets have been critical of the gambling industry, and it is certain that more regulations will be implemented in 2023 in order to protect consumers.

Companies are now investing in responsible gaming initiatives, such as implementing new responsible gaming policies, offering self-exclusion options, and educating players about the risks of gaming. These initiatives help ensure that players are playing in a safe and secure environment, and that they are aware of the risks associated with gaming. This is a positive step forward for the industry, as responsible gaming will help to ensure that players are playing responsibly and that operators are being transparent and accountable.

Player centricity is a key aspect of the gaming industry today, with operators and suppliers understanding the importance of creating an experience that is centered around the player’s individual needs. This includes providing a wide range of games, bonuses, and promotions tailored to the user’s preferences. Additionally, operators are focusing on developing a deeper understanding of their players, using data analysis and machine learning techniques to create personalized experiences.

As the gaming industry continues to become more competitive, operators are investing heavily in gamification and focusing on creating experiences that are more competitive and immersive for players. This can include incorporating elements such as leaderboards, achievements, and rewards through the use of augmented reality and virtual reality, or even through social media integration, which helps to create an even more personalized gaming experience.

Finally, operators are also taking advantage of emerging technologies such as augmented and virtual reality, to create immersive and unique gaming experiences. This allows them to create an atmosphere that is tailored to each individual player and is sure to help them acquire long-term players in the future.

For proponents of legal betting in California, 2022 was a bit of a setback. The California ballot battle over legal sports betting ended in a defeat, with both propositions falling short of the required 50% support. Online sportsbook operators, who had poured millions of dollars into the campaign, were the biggest losers. The Native American tribes, who had their own competing retail sports betting measure, have maintained their near-monopoly on legal gaming in the state. It is likely that another effort to legalize sports betting in California will be made, but the timing is still uncertain.

Despite the CA upset, the legalization of online gambling saw overall growth and some exciting wins for the iGaming industry. Online sports betting launched in Louisiana, Kansas, and Maryland this year. And in January, New York became the biggest legal sports gambling market in the US with the launch of online sportsbooks such as FanDuel, DraftKings, and BetMGM. These online sportsbooks have been responsible for over $1 billion a month in bets and have generated over $600 million in tax revenue for New York State.

April marked the official launch of sports-betting in Ontario, Canada, with 16 gaming operators now able to offer casino games, sporting events and other gambling activities through online websites and smartphone apps. PointsBet placed the first big wager, a $500 two-leg parlay, just 50 seconds into the launch. FanDuel signed a multi-year deal with broadcaster TSN, integrating with them across various platforms. The opening of the industry is expected to bring revenues to the province as it is now regulated and many bettors who previously used grey market sites to place wagers offshore can now do so in a regulated market.

The iGaming industry is constantly evolving and adapting to technological trends, as evidenced by:

• The introduction of artificial intelligence: Artificial intelligence is being used to make the gaming experience more engaging and personalized. AI-powered algorithms are used to analyze player behavior, allowing gaming sites to provide customized experiences for each player.
• The growth of virtual reality gaming: Virtual reality technology has made it possible for players to experience immersive gaming experiences. This has led to the development of virtual reality casinos, as well as other virtual reality gaming experiences.
• The emergence of cloud gaming: Cloud gaming has made it possible for players to access games without having to download them to their devices. This has made gaming more accessible and convenient for players, as well as increasing the range of games available.

The iGaming industry is making great strides in leveraging the latest technology to enhance the gaming experience for players. As technology continues to evolve, the iGaming industry will be sure to take advantage of it to create even more exciting gaming experiences.

The metaverse is a rapidly growing virtual world with a current market size of over $38.5 billion. There are over 400 million monthly active users, with the largest virtual world being Roblox. Research also suggests that 171 million people are using VR worldwide, and the demand for this technology is growing. This growth is having a major impact on the iGaming industry. As virtual worlds become more popular and immersive, more players are turning to iGaming as a form of entertainment.

Crypto casinos are a secure, fast, and cost-effective choice for online gambling. They provide users with increased anonymity, decentralization, and the latest encryption technology to protect them from data breaches. They also offer low transaction costs compared to regular online casinos, making them more accessible.

As VR/AR and other immersive technologies become more accessible, the metaverse gambling and casino industry is gaining immense popularity. This means that more regulations are likely to be put in place to ensure safe and ethical gambling practices, as well as to protect players from fraud. In addition, more competition is likely to arise as established companies strive to stay ahead of the curve and new companies enter the market.

As the metaverse continues to grow, developers will have the opportunity to re-shape the image of iGaming. We can expect to see more games that focus on earning rewards through skill-based models, rather than luck or chance. This shift could lead to the growth of more play-to-earn games, which offer players the chance to earn real rewards through their gaming experience. Additionally, the development of more virtual worlds could create new opportunities for gamers to explore and interact with one another in ways that have never been seen before. This could lead to a new level of engagement and immersion that could revolutionize the way people interact with iGaming.

Esports has become a global phenomenon, and its impact on the iGaming industry is undeniable. This form of competitive video gaming has become hugely popular in recent years, with millions of viewers tuning in to watch professional tournaments around the world. In 2023 we will see the return of some major in-person events as well.

When asked for his thoughts on the upcoming year in esports, Jérôme Coupez, CEO of Prodigy Agency said, “A lot of games continue to grow with large audiences, allowing esports to grow globally, and it’s not going to stop soon. I just hope the whole industry can find ways to redistribute the revenue properly so all stakeholders can continue to grow and make it sustainable for everyone.”

The rise of esports has had a positive impact on the iGaming industry. Many iGaming companies have embraced esports, offering betting on the outcome of professional tournaments. A Statista report claims that esports will have a global revenue of $1.87 billion by 2025. This new revenue stream for iGaming companies provides an exciting new way for players to engage with their favorite teams and players.

Overall, esports have led to an increase in the number of players and titles available to the public. It has also helped to normalize Esports and make it more accessible, leading to even more people playing online games. As esports continues to grow in popularity, its impact on the iGaming industry will no doubt continue to be felt.

With so much change and innovation, the coming year is sure to bring many exciting trends and developments.

1. Live dealer games gained a lot of popularity due to the pandemic, but they will continue to be popular long after restrictions are lifted. Online casino owners are now incorporating these games into their platforms, as players trust live dealers more than RNGs.
2. Emergence of new payment methods: iGaming operators are increasingly adopting new payment methods to make it easier for players to deposit and withdraw funds.
3. Mobile gaming is becoming increasingly popular, with more players using their smartphones and tablets to access online casinos.
4. Social gaming is becoming more popular; players are looking for an entertaining gaming experience that they can share with friends.
5. Continued legalization of iGaming is expected worldwide. In the U.S., 30 states have legalized sports betting and 21 have legalized online betting, with many more pushing for further legalization.

The iGaming sector has experienced rapid growth in the last year and is expected to continue this trend in 2023. With more people turning to online gaming for entertainment, the industry has become increasingly competitive and profitable. As technology continues to advance, new and innovative gaming experiences will be created that will further drive growth in the sector.

With an ever-expanding customer base, the iGaming industry is poised for continued success and growth. This year, investing in the iGaming industry and creating solutions with social elements integration, cloud technology, and extended reality is a wise decision. You should design gaming titles that capture the attention of players, provide user-generated content, meet users’ expectations, and offer potential for high returns. With the right strategic decisions and investments, companies in the iGaming sector can look forward to a bright and prosperous future.