iGaming Industry - Love Child of Technology & Lawless Environment
iGaming industry is no longer something new. It has been around for almost 20 years, in one way or another. Even so, many still perceive it as a novelty, something that came out of the blue, as not everyone is aware of its beginnings. In fact, there are many people who are completely unaware of its existence. To help us understand this phenomenon, we reached out to Anna Rosak, a gaming expert from Poland who has deep knowledge of iGaming. As an editor of one of the most popular casino review sites in Poland (MalinaCasino review serving as an example of her work in spreading knowledge of gambling industry), she knows all the trends on the market.
“Before the pandemic hit, many people were completely unaware that iGaming industry even exists. Multiple lockdowns and social distance made people turn to online entertainment so, understandably, iGaming companies multiplied their marketing budgets to read wider audiences,” explains Maj. In her opinion, that made the entire sector more visible to average Joe. But how come, an entire industry managed to develop far from the eyes of the public? Maj knows the answer.
Technological Innovations Away From the Mainstream
To help us understand the circumstances that lead to the mysterious beginnings of online gaming, the expert asked us to take a trip down memory lane to the early 2000s: “Internet was still rather slow, and computers were not something every household had. In addition to that, online payment systems were still going through growing pains, and weren’t considered legit methods of money transfer”, she reminded us.
That was the environment in which the iGaming industry made its first steps. Although it was a completely different time, our casino specialist thinks the first online gaming companies were true visionaries that helped mold the internet environment we know today. She believes online gaming gave a huge push in the back not only to payment system operators, but also to developers of safety protocols, gaming studios, and designers.
“iGaming sector has always been incredibly tech-savvy. After all, it is customers’ money you have to protect, and there is also a service that has to be delivered at a premium level, regardless of the technological limitations,” reveals Maj and adds how this particular industry was always open to new technology and was among the first to accept smartphones as a nifty replacement for desktop computers.
Even though there wasn’t always a big market for its products, the gaming industry made sure to please the few of those who did have the equipment to use it. Still, as one of the major factors for such an “underground” development, Maj mentions the slow recognition and regulation of online gaming by lawmakers.
It Takes Decades to Regulate the Casino Industry
Maj admits how the history of iGaming industry is much dirtier than it seems. The way she sees it, it is mostly because regulators and lawmakers didn’t recognize the potential of this sector, but rather let it operate under circumstances that can be best described as Wild West. The unregulated business environment led to several dangerous consequences.
The first, and most obvious one, was greater risk exposure for customers. Completely unprotected, they were targets of many scams and false promises. Many individuals lost fortunes to rigged games and companies that would simply disappear. Second, it took decades for some regulators to recognize the leaking amounts of money, all due to unregulated markets. And to our surprise, Aleksandra informed us to leave our prejudice behind on which governments were slow to react.
“You think it is 3rd world countries that took ages to regulate online gaming? Think again! The Netherlands did it in autumn 2021, which is downright insane,” Maj is honest. Some countries simply applied the land-based regulations to online gaming, others created laws that are practically allowing state monopoly, and if you ask Maj, some smaller countries did a much better job than big guys everyone admires – Germany, UK, Scandinavia.
“Take Croatia as an example. This market is impenetrable to unregulated brands, as the authorities dedicate a lot of time effort to blocking unlicensed casinos. It might not be the most powerful country in the world, but it sure doesn’t allow anyone to get away with operating under the radar,” tells Aleksandra.
The Future of iGaming
The future of iGaming is full of challenges. While it will continue to benefit from technologies such as cryptos and blockchains, it will also have to adapt to the ever-growing number of local laws and regulations. “The easy route is no longer available, and more and more countries insist on local licenses. The stakes are too big, and the money does the talking. And that talk ain’t cheap. Every license costs money, so we can presume smaller companies will no longer be able to operate as they did before. However, if that means more safety for gamers, I’m all for it,” concludes Maj.
Image: Pixabay
