Leisure gaming in all its forms has always been influenced by digitalization. From the days of old school pinball machines competing with digital games like Asteroids and Space Invaders, the march of technology has continued. Many modern video games are virtually life-like, with incredible visuals and innovations, and dedicated gaming communities brought together by the Internet. Esports has now become a multi-million-dollar industry.
One of the more overlooked influences on this gaming realm has been that of iGaming. This is an umbrella term for any kind of online gambling, including casinos, sports betting, lotteries and poker. Today there are several dozen online casinos for US players, not to mention the plethora of sports betting sites covering major US sports. Because of the vast sums of money involved and the challenge of keeping up with technological developments in the video gaming world to attract and retain this demographic, iGaming has borrowed heavily from modern video games to improve visuals, game play, and to invent new types of slot games based on actual video games.
But what about the flipside? It’s an interesting exercise to look at how iGaming has influenced video gaming.
Online Multiplayer Technology
Many people don’t realize (and perhaps don’t want to know) that a huge number of online technology advances were pioneered by two specific sectors: the gambling industry and the adult entertainment industry. These were the two industries that first grasped the Internet’s potential to create massive new revenue streams. They were instrumental in developing some of the online technologies we now take for granted, like payment gateways and alternate payment methods.
They poured money and resources into developing new technology to allow people from all across the globe to gamble. These developments later filtered into the gaming world. Within a few years, multiplayer video gaming emerged. Instead of playing Quake against AI characters on their computers, gamers could now play against real humans from anywhere in the world. This later led to the explosion of the Massively Multiplayer Online (MMO) games that are so hugely popular today. It’s quite fascinating to realize that there’s a direct link between early online casino technology and Fortnite.
Gambling Elements in Gaming
One could say it was inevitable that the rewards system of gambling would seep into the gaming world. Games like Red Dead Redemption included poker games as side quests, for instance. Similarly, you can visit and gamble at casino resorts in Grand Theft Auto. Other influences are more subtle. The gambling auto-mechanics that rewarded players with bonus wins or prizes started showing up in video games, in the form of randomized loot boxes and other incentives that echo gambling activities.
One can easily imagine a future where entire video games are based on casino experiences, with players required to win at different casino games to level up, with the skill level getting harder each time. Speculation aside though, both video game developers and casino platforms have realized this cross-appeal. Just as casino platforms are incorporating gamification to attract new players, video game developers are using the attraction of gambling to sell more units.
Live Streaming of Video Games
Two forces in the gambling world came together to sow the seed for video game live streaming. The first was the televising of the World Series of Poker, which re-popularized the game among young adults. The second was the advent of live dealer games at online casinos. These were the precursors of today’s immensely popular live video game streaming on platforms like Twitch. It repositioned video gaming as something one can watch others play for entertainment, and became so successful that Amazon bought Twitch for just under $1 billion in 2014.
It also became a great way for newbies to learn advanced gameplay by watching elite players compete. Esports then took it further, creating video game competitions in front of live audiences that were simultaneously streamed, with major championships being televised.
In-game Monetization
Online casino platforms obviously began making money hand over fist, as each gameplay activity involved staking money, given the house edge. Video games were one-off purchases. To increase revenue, game developers stole a trick or two from the casinos by introducing various forms of in-game monetization. These allowed even free games to make money for their creators. These monetization methods include:
- Microtransactions – video games introduced perks, stronger characters and level-ups that cost small amounts. These are very strong inducements in such a competitive environment where players across the world are vying for supremacy.
- Forced ad watching – almost all free games today are punctuated by ads that players have to watch in-between gaming. These can usually be skipped after about 30 seconds, but gamers hate them. This subtle psychological pressure introduced yet another revenue stream. By paying a one-time fee, players can play ad-free.
- Whale fishing – casinos don’t make the big money from casual bettors. This comes from the high rollers who can afford to lose as much as they like, and treat casinos as pure entertainment. The same is now true in video games. While most people won’t spend much on buying in-game enhancements, some players just buy everything in sight – the fastest cars, the most powerful weapons, the strongest characters. This is how modern video games make a lot of money.
Conclusion
iGaming has had several key impacts on modern video gaming. It helped create the framework for multi-player gaming, live streaming of events, gaming communities and in-game monetization. And as these two worlds converge even more, we can only expect them to continue influencing each other.
