iGaming is a growing industry which specialises in online betting games. As the inclusion of the letter ‘i’ implies—it’s the electronic age’s response to games of chance; they are wager-games, played over the internet.
The iGaming industry is quickly evolving, alongside the internet. The constant use of mobile devices and the readiness of a steady internet connection have contributed to its growth, and now it’s a booming, thriving industry.
This article will look at iGaming primarily from a business perspective because, well, that’s how we roll.
However, if you’re looking to place some internet bets, you’ll find this information useful too: know where you stand before you part with any of your hard-earned cash.
iGaming: Definition
A few obvious types of competition fall under the umbrella category of ‘iGaming’, but, similarly, a few things which people might expect to be included actually fall just outside it.
The keyword here is ‘betting’. In the pre-Internet era, there was no ‘i’, and this sort of gaming referred to the stuff that makes up a Casino, or sports betting.
So, for example, things that fall under the ‘iGaming’ label include:
- Online Slot and Casino games
- Online Sports Betting
- eSports
- Fantasy Sports
- Online Lotteries
In other words, iGaming tends to be classified as ‘gambling’. It’s a game of luck, and all about tossing up the odds and throwing your hat in the ring.
Therefore, these things are less likely to fall under the category of ‘iGaming’:
- Prize Draws and Raffles
- Competitions that demand a skill element
- Competitions with a free entry route
That’s because these things don’t fall under the criteria for defining a game as ‘gambling’.
They do, however, have similar target audiences, and there’s overlap in the sorts of marketing and advertising these two types of Real Money Gaming offer.
How iGaming Works
There are a few different things to be aware of when you look at iGaming or prize draws from a business perspective.
Whether it’s iGaming in particular you want to get into, or whether you want to keep things outside the remit of gambling with skill and free entry routes, the main thing to remember is that it’s got to be fair. Both iGaming sites and Prize Draw sites (like the ones we set up!) have to be based around a Random Number Generator (RNG).
That RNG is what determines who wins what. It’s important, then, that it’s actually random; otherwise, the odds you advertise aren’t actually the odds, and you are mis-selling tickets.
Now, some definitions to help you understand RNGs and where they come from:
1. iGaming Suppliers (or ‘Vendors’) are the companies which develop the software that hosts your games and sort out all the odds
2. Meanwhile, Game Providers are the ones who develop the interactive videos and images which are crucial for online casinos.
The well-designed game content is what makes your RNG system (the very centre of any online bet, or prize draw) actually exciting to interact with.
And the good news is that, if it was Prize Draws and skill competitions you wanted to get into, Zap’s got their own RNG, good to go. It’s born of years of experience in this field, and it is truly fair, which protects both your business and your customers.
Payments
It’s also vital that you know about payments in the iGaming industry, to clear up any confusion.
These days, the industry operates on a deposit-withdrawal system. Players deposit funds to their online accounts to play games, place bets, or access paid features.
They do this either via one-time online payments—which take place in the same way as all ecommerce payments online—or through subscriptions.
Then they access their winnings (and occasionally refunds) via a withdrawal system. The site will issue payouts to achieve this, often automatically, but not always.
The Legal and Regulatory Landscape
Due to iGaming’s closeness to gambling, this is where it differs from prize draw sites.
Because our prize draw clients’ competitions require a skill element, or offer a free entry route, they don’t need a licence from the Gambling Commission. The control remains with the site user about whether they pay at all, and someone will always win a prize, no matter the odds.
In the UK, most sites in iGaming should apply for a license from the Gambling Commission.
If you are in iGaming, and your games:
- Are games of chance
- Offer no free entry route
- Doesn’t require a skill element
You’ll need to do some research into the sort of license that best fits your work.
The laws around gambling have changed a lot in the UK. For this reason, it’s tricky for us to pinpoint exactly what you’ll need to think about and when, but the main points can be summed up as follows:
If you work to keep your players safe, you don’t sell tickets to those under 18, and you set up systems on your site to prevent addictive spending, you’re in a camp with some good people. Add to that all the required licenses, and you’re good to go.
The Technology Behind iGaming
One of the main reasons for the boom of iGaming is the corresponding boom of technology.
Of course, mobile apps and web platforms are central to our day-to-day lives, which means they are also central to iGaming. The ready availability of games at the click of a button has meant wonderful things for retention rates. People can dip in and out of games in a way they never could before, and really invest in their favourite game suppliers.
Livestreaming and interactive gaming are also crucial to the growth of this industry. Games like this are at their best when there’s a sense of live excitement, and urgency, as well as a little bit of FOMO here and there.
Plus, the ability to livestream winners and show off real people getting involved with your iGames in a livestream is a great way to build trust in an industry that can make people a little nervous.
But the thing that has really developed in recent years, and really supported the safety and security of iGaming participants, is the notion of payment gateways.
There are so many ways to get money from Point A to B, now. A good payment gateway solution, nd a website designed for quick deposits and withdrawals, is exactly what iGaming and prize draws need to succeed.
We’ve been able to create our own payment gateway, Zap Pay, for example. This helps competitions take place smoothly, letting winners get hold of their winnings as quickly and efficiently as possible.
Players need to be safe, and they also need to trust you. Knowing what you’re doing with their money is a big part of that, and modern technology makes it easier than ever.
Where Does Zap Come Into This?
It’s important to us that people looking to get into the prize draw industry understand the difference between iGaming, gambling, and prize draws.
We can help you with all of these, but we also recognise that understanding your position in the industry helps you to keep your players safe and happy, and your website ticking over.
So, if you’re looking at the industry and you want in, all you need to do is drop us a message. We’ve been in the industry a long time; we’ve seen it change, and we’ve supported our clients as they navigate it.
We’re a safe pair of hands when it’s online games you want.
