What Is iGaming?

iGaming means any type of gambling conducted via the internet. It’s an avenue for players to access numerous wagering opportunities across games like online casinos, poker, sports, esports, and more, from the comfort of their homes. 

According to SOFTSWISS, the online gambling market generated more than $70 billion in 2021 and is expected to surpass $100 billion in 2026. From projections, this industry can generate up to $153 billion in iGaming revenue by 2030, driven largely by technological advancements, increased mobile gaming, and new markets opening up due to regulations. 

In fact, this is currently among the fastest-growing industries in global entertainment. So, if you have placed a bet on a cricket game or spun a slot machine online using your phone or computer, then you’ve participated in this industry. Keep reading to understand iGaming meaning, the different types, the science behind the industry, and what it means for players in India.

iGaming Meaning: What Does iGaming Stand For?

The term comes from the combination of two significant components: ‘interactive’ and ‘gaming’. It represents the full digital gambling ecosystem, including platforms, technologies, regulations, and businesses that support iGaming.

In other words, this phenomenon covers every form of wagering or betting done through the internet. By being internet-centered, one can access digital casinos, bet on sports, or join an online poker tournament from their comfort zone. This flexibility and convenience let players take part in various games of chance available in the industry.

Main Types of iGaming

Now that we understand iGaming what is it, let’s consider its main types, including poker, sports betting, live dealer games, esports, lottery, online casino, and fantasy sports. Each hosts a good number of titles of chance and experience levels for bettors to choose from.

Online Casino

If you are wondering, What is iGaming industry?, It’s a market built on online casino games. The top-rated video game providers, such as Evolution Gaming, Microgaming, and Pragmatic Play, offer millions of options to players worldwide. These include video slots and live dealer options that one can play on their computer or mobile, or via live data streamed directly to their television in real time.

Sports Betting

It is one of the most popular aspects of the iGaming industry and is extremely popular in India. With Cricket generating massive interest, players can wager on cricket matches, tournaments, and many other live sporting events.

Online Poker

It has moved into the digital space, allowing cash games to run across multiple platforms and game types, attracting punters with unique play styles and varying experience levels.

Esports

It has also become a growing subsector of the industry where one can place wagers on the outcomes of various competitive video game events, such as CS: GO, Dota 2, and League of Legends.

Online Lottery and Fantasy Sports

These categories make up the total number of iGaming categories available. Fantasy sports platforms have shown even greater interest in India. Products like Dream11 and MPL have amassed tens of millions of punters across Asia, because the Indian law groups them as skill-based games.

Check out the table below:

How the iGaming Industry Works?

The industry operates through a layered supply chain in which multiple stakeholders collaborate to deliver a seamless experience for players. 

Compared to other verticals, it is more fragmented because of the technical and legal challenges that the industry faces. Therefore, it is essential to understand the various stakeholders in the iGaming ecosystem and what motivates each stakeholder group.

Here is how each layer functions.

Key Players: Operators, Providers, Affiliates

The following are major entities that foster the existence and growth of the industry:

An iGaming Operator

The business manages all aspects of online gambling, with a gaming site as the primary point of interaction for players. Their job is to manage user accounts, bonuses or promotions, customer service, and ensure compliance with laws and regulations. 

An operator obtains a gambling license for their target market to legally operate in that market. A popular example is 1xBet, a prominent internationally licensed platform with a significant share of the Indian sports betting market.

A Game Provider or Studio 

Various companies produce the content necessary for the different types of games. They include slots, table games, live dealers, and crash (where players can win money), etc.

The most prominent gaming providers in the live dealer space are Evolution Gaming, Pragmatic Play, and Microgaming (each having some of the best-known slot titles). Though Microgaming is the oldest and has the most reputation, Evolution Gaming is taking center stage, leading the list of software suppliers for iGaming operators.

An Affiliate 

This is an entity that refers players to platforms and earns a percentage of any money made from those referrals. Here, affiliate marketing is a highly effective way to drive new users to the section. There, they generate substantial revenue and drive vast amounts of traffic for iGaming operators at little or no cost to the operator.

Payment Processors 

This group offers services to gaming operators so that users can transfer funds to and from the site. Payment processing providers allow customers to make deposits and withdrawals from their accounts via credit or debit cards, e-wallets, local banks, and digital currencies, including cryptocurrencies, using blockchain technology. 

Licensing and Regulation

All iGaming firms must have a legitimate gambling license from an accredited government body before they may operate as a business. This shows that the operator passed the standards for fair gaming, player protection, and financial reporting.

To maintain compliance with the licensing authority, the operator must have KYC (Know Your Customer) procedures in place to verify identity and prevent fraud. In addition, all Random Number Generator systems used on the platform must be certified, and the operator must have adequate financial processing controls in place to prevent money laundering.

In addition, all licensed operators must offer responsible gaming features to players, such as deposit limits, self-exclusion tools, and reminders of gaming session activity. These measures help to create and build player confidence in the gaming site. Here are the most widely recognized authorities in the licensing of iGaming firms:

Malta Gaming Authority (MGA)

This is among the best-known and most respected gambling authorities in the world, and it provides licenses across Europe and outside of Europe.

Curaçao

The Curaçao license is a common licensing authority for operators entering new markets because of the comparatively simple application process for obtaining the license and its overall international acceptance.

UK Gambling Commission

It regulates all types of gambling in the United Kingdom and has very strict regulations on responsible gambling, advertising, and customer welfare.

iGaming vs Gambling - What is the Difference?

People often use these terms interchangeably, but they actually do have distinct legal definitions. While all iGaming is considered to be gambling, not all gambling is iGaming.

iGaming

It specifically (and exclusively) covers wagering on the internet, including games of skill. The revenue model relies mostly on digital channels such as affiliate marketing and performance advertising.

This type of activity, such as fantasy sports, may not meet the legal definition of gambling. For instance, in India, skill-based gaming is defined as a distinct category of activity from chance-based gaming, allowing companies such as Dream11 to provide this type of iGaming service at scale.

It also has additional benefits over traditional wagering due to its access to new technologies. Players can now access their favorite casino games via mobile device, enjoy a larger collection, have access to real-time game updates, instant payment options (via digital wallets), and play live dealer games with live streaming simultaneously.

Gambling

It covers any type, both online and in-person wagering at a casino, racetrack, or bookmaking establishment. The revenue model relies primarily on physical footfall to produce revenue.

It is almost exclusively chance-based, meaning the outcome is determined by luck rather than skill. This distinction matters legally because most jurisdictions regulate chance-based gambling far more strictly than skill-based gaming, often requiring physical operators to obtain location-specific licenses, adhere to zoning laws, and meet responsible gaming compliance standards on-site.

Gambling also comes with infrastructural costs that digital platforms simply don't carry. Land-based casinos, for example, must invest heavily in physical premises, staff, security, and equipment maintenance to keep operations running. These overheads directly affect profitability and limit how quickly a traditional gambling business can scale compared to its digital counterpart.

iGaming in India: A Growing Market with Evolving Rules

The online gambling India is subject to an incredibly intricate collection of regulations. There is no single national law or governing authority for the industry. Instead, each state has its own rules and regulations for this sector of the economy. 

The dominant legal basis for regulating online gambling at the state level is the Public Gambling Act of 1867, which predates the invention of the Internet. The legality of casino gaming varies from one state to another. Goa, Sikkim, and Daman are the only states that allow for a licensed casino. 

Goa's casino operations are among the best known in all of South Asia. At the same time, no clear legal framework (either positive or negative) exists in the rest of the country regarding online gambling activities. 

Most international operators have found themselves developing and implementing very careful strategies to ensure they can conduct their businesses in these undefined regulatory environments.

Skill Games, Licenses, and Growth Outlook

Online rummy and fantasy sports (both skill-based games) are thus legally recognized as widespread activities throughout India. This has led to hundreds of millions of people registering for these skill-based gaming activities, making the country one of the most exciting new markets in the global iGaming industry.

Though not licensed domestically, internationally licensed platforms (those with a valid Curaçao or MGA license) do serve Indian customers. It is always advisable for these customers to verify the platform's credentials on which they wish to play and to find out what their obligations are under Indian law before using it.

The Indian iGaming industry is poised for substantial growth over the next ten years, thanks to a growing number of smartphones and low-cost access to mobile networks, combined with a youthful population and rising disposable incomes.