The iGaming Business: How to Profit From This Growing Market

Explore Lucrative Business Opportunities in the Booming iGaming Industry and Know What to Consider When Seeking a Reliable iGaming Services Partner.

Breaking Into the Booming IGaming Business for a Startup Venture

Are you an entrepreneur who is always chasing after an exciting new vertical? IGaming, or interactive gaming, could be the perfect opportunity for you. IGaming is about any online or digital activity where you get to wager on the results of games, sporting events, or other outcomes of casino games, poker matches, sports betting simulations, lottery, and more.

The industry analysis shows that in 2023, the sector can approximate $87.91 billion in revenue. And it is eventually anticipated to increase by 9% between 2023 and 2027. This will result in an estimated market size of $124.2 billion by 2027, whereas the number of online users is forecasted to reach almost 234 million participants.

You can profit from this buoyant market in many ways. You can build your own company and operate online gaming and betting websites or mobile apps. You can provide services to existing internet gaming businesses like customer support, payment processing, marketing, and others. Or you can earn commissions by promoting iGaming brands and products.

The industry is booming and shows no evidence of declining. Now is the time to explore how you can become a part of this fertile market. 

What is iGaming? Defining The Growing Industry

Interactive gaming embraces all digital interactions and transactions related to predicting and placing bets on the future results of various events online and in the physical world. Internet-connected devices and platforms enable all interested participants to indulge in various forms of remote gambling and to bet on the outcomes of scheduled and live competitions, contests, and performances.

The iGaming industry consists of a bunch of digital segments, including:

• Online casinos. These offer virtual versions of traditional casinos. Players can access an enormous selection of games 24/7. They wager real money and win cash prizes.
• Sports betting. Players can bet on the outcomes of sporting events like football, basketball, esports, and more. Live streaming and real-time odds updates allow for in-play betting. Fantasy and virtual sports are other options for sports fans and gamblers.
• Bingo. This works much the same as traditional bingo halls. Virtual bingo games feature different rooms and offer various styles, including 90-ball and 75-ball. Like in a real bingo hall, players try to create lines, shapes, and full card patterns to win prizes.
• Poker. Online poker allows players to participate in games of Texas Hold ’em, Omaha, and others and draw with others online. Players can join public cash games and tournaments or private games with friends. 
• Lotteries. Online lotteries function similarly to traditional ones, enabling players to purchase tickets for drawings via websites and mobile apps. Winnings are distributed the same as if players bought a physical ticket.

Key Growth Drivers

Having understood the iGaming definition and the market’s main subsectors, let’s explore the key factors driving the rise of interactive entertainment. Identifying these growth drivers provides insight into why it has become such a powerful market and how it may continue to expand. 

Whether you are a casual gamer, an industry professional, or a potential investor, the upsurge of online gaming and betting is a significant trend to follow as it transforms the way we play and engage with interactive entertainment.

Several factors are powering the boom:

• Increasing internet and smartphone penetration. As more people gain access to the web and mobile devices, the customer pool for iGaming companies grows.
• Customer demand. Both young and senior people alike show their interest in online gambling, casino games, poker, and sports betting.
• Innovations. Market providers employ new technologies like VR, AR, and esports and optimize their mobile device platforms since that is how most customers engage.
• Cross-selling opportunities. The interactive gaming operators can cross-sell multiple products. They can increase customer lifetime value by offering an array of gaming options.

The iGaming business definitely offers promising opportunities for startups. By deploying innovative technology, offering in-demand gaming options, and expanding into new target audiences, a startup can tap into this multi-billion dollar industry. The room for growth here is enormous.

Opportunities in Interactive Gaming

Are you willing to take a calculated risk? Let’s dissect the 3 most lucrative business opportunities for your venture in the sector.

Developing gaming apps and software

Consider creating your own gaming apps, platforms, or software if you have a software engineering and game development background or partner with an experienced iGaming service provider. Build games for mobile devices, PCs, or gaming terminals and sell them directly to players or license them to gaming companies.

Affiliate programs

If you have skills in online marketing, become an iGaming agent for existing gaming companies. Hype up their games on your website or give them shoutouts on your social media channels and earn a commission for each player you refer who signs up and plays. This is a popular way to enter the industry without developing gaming software or obtaining licenses

Support services

Interactive gaming companies require a range of support services to operate efficiently. Offer services like payment processing, customer support, localization and translation, or cybersecurity. These types of B2B businesses that serve the industry are in high demand.

While the industry boasts an attractive ROI, the only caveat that must be added is that online betting platforms and software must comply with regulations in target markets. Requirements vary significantly around the world and can include obtaining licenses, server hosting within approved jurisdictions, responsible gambling features, and secure age and identity verification.

iGaming Technology and Platforms Powering the Industry

To better grasp the online betting industry, you need to understand the technology and platforms behind it. Several options enable operators to build and manage an interactive gaming business.

Platforms

These are the software and infrastructure that host all operations. 

Two primary types are:

• Proprietary ones, meaning custom-built platforms. While more complex to develop and maintain, they provide complete control and flexibility. 
• White label ones, or ready-made solutions that operators can brand and customize as their own. These solutions let you burst into the market quickly from scratch without developing your own technology or having gaming expertise.

APIs

Application programming interfaces allow platforms to integrate external software for operations like payments, data feeds, etc. They expand the functionality and options iGaming services can offer operators. For example, apps may integrate specific payment APIs for mobile deposits and withdrawals or access to sports data and casino games.

Hosting and servers

Internet gaming platforms are hosted on dedicated servers or use cloud hosting. Servers provide the infrastructure to develop and operate sites with features like player accounts, betting, live casino games, and streaming. As the sector continues transitioning to mobile, platforms and APIs get optimized for mobile casino games, live betting, and omni-channel experiences across devices.

The iGaming technologies and platforms continue their advancement. They keep increasing personalization and pushing the boundaries of what’s possible for operators. 

Finding the Right iGaming Services Provider

As an Internet gaming business, picking the right technical partner is one of your most critical decisions. The partner you select will significantly impact your operations and proceeds. To find the one that is the perfect ally for your business, first define your business goals and requirements. 

Then ask yourself the following questions:

• What technical expertise and experience do you need?
• What level of support do you require?
• What is your budget?

By thoughtfully assessing your key objectives, you can determine the specific demands for your strategic iGaming partner. Use them to find one able to build a foundation for success. 

When assessing, focus on a few key areas:

• Industry experience. Look for a team with several years of experience developing and operating interactive entertainment platforms and products. They understand the complex regulations and have the technical capabilities to build a robust, scalable solution. 
• Compliance knowledge. Because the iGaming industry is heavily regulated, pick a partner who is well-versed in compliance for markets you want to operate in and stay up-to-date with changes to ensure your business is always legal.
• Range of services. Choose professionals that offer a full suite of services to support you end-to-end, from platform development and hosting to payment processing and customer support. 
• Flexibility. Opt for a business ally that can provide adaptive tailoring to match your brand and business objectives. 

Thriving in the iGaming Business: Bottom Line

Interactive gaming is poised for tremendous growth in the coming years, and you have an opportunity to stake your claim in this swelling market. With the right team behind you, you can build a successful career, helping shape the future of this exciting industry.

With over a decade of experience, Mohio Gaming understands the challenges players face in the industry. Our betting software is designed with a focus on profitability, ensuring you have the right tools and features to acquire and retain high-value players. We approach each client and market individually, developing bespoke solutions. Our experts provide support for everything from technical issues to cashier training, helping you optimize operations and drive your profits to new heights.

Contact us to get your startup in the iGaming business to market quickly, fully compliant and braced for success.