iGaming Vs eGaming – Do You Know the Difference?

The terms eGaming and iGaming are frequently considered synonymous. Innovation and technological advancements have further blurred the lines between these popular forms of digital entertainment. 

Whether you are an industry professional or a casual player, there's a good chance of confusion between the two. So, let’s get some clarity and learn why it matters!

What is eGaming?

Those born before the turn of the millennium may recollect playing video games like Super Mario, Street Fighter or Sonic the Hedgehog on a game console or PC.

Levels of player engagement and interaction with video games increased significantly with the arrival of consoles with internet and Wifi capability.  By 2006, the ability to connect and play multiplayer online games with anyone from anywhere marked the start of the eGaming revolution. 

Though risk may be present in some games, the dominant focus is on skill over chance. Free online games are widely available, and payments are predominantly restricted to hardware and software purchases, subscription fees and in-game purchases.

With this in mind, all activities associated with playing video games over a network for fun and amusement fall under the umbrella of eGaming.

The Rise of iGaming

In contrast, iGaming relates to betting activities through a digital connection. 

The term is defined as the act of wagering on the future outcome of a game or competitive sporting event governed by chance. It applies to sports betting, online casinos, live dealer casino games, poker, lottery, and more.

The multi-billion dollar iGaming industry encompasses a broad spectrum of diverse interests. It includes game developers such as NetEnt and Playtech and platform operators like Bet365, Starcasino, and Betmotion that interface with end users. 

In between, Altenar and leading software providers work diligently behind the scenes to connect both ends with data, customisable software and the provision of fully managed iGaming services. 

Decoding Disparities to Accelerate Growth

While there are significant points of convergence emerging between iGaming and eGaming, there remain a few notable distinctions separating the two:

eGaming is the world’s highest-grossing industry, worth $350 -$400 billion in 2023, more than the music and film industries combined. Moreover, projected growth estimates the industry's value at $1 trillion by 2030. Understanding the disparities between electronic gaming and gambling can help bridge the gap and accelerate iGaming profits. 

Online video gaming appeals to a diverse audience, leaning towards a younger generation seeking enjoyment through games of skill, competition and engagement. It thrives on community participation, and for many gamers, sheer entertainment value and the social experience are the primary reasons for playing online video games. 

iGaming, on the other hand, attracts a different demographic, which is not entirely due to the age restrictions imposed on gambling. Typically, it appeals to an older generation who seek the thrill of wagering and the potential for financial gain. While social interaction and competition exist in online gambling, notably in online poker rooms and live dealer casino studios, the primary motivations are risk and the personal pursuit of profit.

Another point of divergence is the emphasis on skill and chance. An entertaining game often involves a mix of ability and luck, so most games incorporate both elements to some degree. Skill, however, is the overwhelming focus in eGaming. In contrast, iGaming places greater emphasis on chance. While skill-based games clearly exist in iGaming, especially where sport/game knowledge and probability analysis influence decision-making, the lure of luck-based wins is the overriding attraction for many online gamblers and sports bettors.

Where the Two Worlds Converge

The iGaming industry remains at the forefront of emerging technologies and hasn’t been slow to identify the disparities and recognise growth opportunities by adopting elements of eGaming.

After all, both markets centre around game entertainment. A player playing action games today may also seek to play exciting games of chance tomorrow.

Here are a few technical innovations incorporated by the iGaming industry in recent years that have diminished the lines between gambling and eGaming:

eSports

By embracing eSports, iGaming platforms have attracted the participation of a younger tech-savvy demographic traditionally rooted in eGaming.

Gamification

Gamification is an outstanding example of how the industry has learnt from eGaming by using non-game elements to encourage player engagement. Point scoring, tasks, and competitions are standard strategies employed in video games to motivate players and promote participation. In iGaming, these concepts translate to loyalty points, interactive bonuses, slot tournaments, and leaderboards to promote customer conversion and retention, as well as keep bettors interacting with games. 

Preserving familiar Gamification elements associated with video games has further narrowed the gap between the two game industries.

Social Casinos

Social casinos mirror real-world casinos but use virtual coins with no monetary value. They offer a fusion of eGaming and iGaming elements that invite players to try popular casino games like online roulette, blackjack and jackpot slots in a fun and entertaining way. The long-term benefits for the iGaming industry are clear. They provide exposure to casino games, encourage social interaction in a casino setting and cultivate a community-centric spirit, thereby strengthening the link between the two forms of game entertainment.

Tournaments and events

Casino loyalty programs, VIP programs and comp points place greater emphasis on tournaments and events in modern casinos. Slot tournaments, themed events, leaderboard challenges and achievement-based rewards for completing in-game missions are a few prominent examples. These initiatives foster a competitive environment and community spirit between players, further enhancing player engagement and commitment.

Live Dealer Casinos

This type of online gambling provides experiences akin to playing multiplayer online games. Although competition is against the house in the vast majority of live games, live dealer games can evoke a competitive and sometimes collaborative atmosphere.

The Future of iGaming

By learning from the online gaming community's successes and continuing the trend of incorporating eGaming features, the iGaming industry is perfectly positioned to accelerate in popularity. Moving forward, future growth can be achieved by creating a more connected online casino and sports betting environment in terms of in-game communication, community challenges, and collaborative events.

Adapting the latest technological advancements in the gaming industry also has the potential to increase operational efficiencies and boost the economic outlook for the iGaming industry. Innovations in AI, for example, are being used with promising results in eGaming to optimize games, personalise player experiences, and ultimately, increase customer acquisition and retention. 

Capitalizing on eGaming Trends

Here are a few initiatives that will help gambling operators and professionals achieve this aim: 

Encourage Community Engagement - Live chat, community forums, social events, and live dealer games foster engagement, which helps build customer loyalty and retention.

Include Dynamic Content - Special bonuses, theme-based tournaments and seasonal events drive higher player interest and participation levels.

Incorporate Gamification Strategies - Leagues, ladders and achievement awards add a competitive element resulting in more user interaction and longer playing sessions.

Add Personalisation Elements - Personalised rewards, game recommendations, and marketing initiatives using the latest AI methods improve the user experience and engagement. 

Integrate Esports Betting - If it fits your business strategy, integrating eSports will help you tap into a rapidly expanding market, attract a younger adults and introduce other betting opportunities.

Leverage Data Analytics - User behaviour analysis helps operators understand player preferences and tailor their services accordingly to improve operational efficiency and customer satisfaction.

Include Entertaining Skill-based Games - Adding new and innovative game types that allow players to wager on skill-based games helps to expand demographics and attract new customers.

Examples include:

• Strategic Sports Betting Simulator

• Interactive Stock Market Gambling

• Puzzle Battle Games

• Adventure Quest Strategy Gambling

• Real-Time Strategy (RTS) Gambling

For iGaming Operators and Professionals

Whether you want to develop a new iGaming platform fast or add new games to your existing portfolio, Alternar has the expertise to provide scalable iGaming solutions with the flexibility and stability to drive your business forward.

Disclaimer

This information is not intended to be legal advice and is solely extracted from open sources. It should not be relied upon as a substitute for professional legal advice and Altenar does not accept any liability in relation to its use.