How to Build a Winning iGaming Platform While Dodging $10M in Fines

Operators in the online gambling industry face increasing pressure to balance compliance with profitability, as governments worldwide enforce stricter anti-money laundering (AML) measures, and fraud continues to pose a significant threat. A recent IDnow survey revealed that:

• nearly 30% of European gaming operators struggle with source-of-funds verification, making compliance a major operational challenge
• bonus abuse (65%) and document fraud (57%) remain persistent risks, directly impacting platform integrity and bottom-line revenue

Apart from an interactive iGaming experience, a well-designed iGaming platform actively prevents fraud, streamlines compliance, and enhances the player experience. Such an approach protects operators from financial and legal risks but also ensures long-term sustainability. In this article, we explore the essential components of developing a stable, secure, and reliable iGaming platform by covering:

• core iGaming technologies
• modern UI/UX specifics on the example of key industry players
• compliance requirements with regional industry regulations
• challenges to overcome in iGaming software development

What is iGaming? Understanding a $107.7 billion market

iGaming refers to online betting and gambling activities, including casino games, sports betting, poker, bingo, and lotteries, conducted via web and mobile platforms. Unlike traditional gambling, iGaming platforms rely on digital infrastructure, complex security frameworks, and real-time payment processing to deliver seamless and engaging experiences to players worldwide.

According to Statista, the global iGaming market is projected to reach $107.7 billion in 2025, reflecting the industry’s rapid adoption of emerging technologies and wider regulatory acceptance. Here’s a dropdown list of factors that facilitate iGaming market growth:

• Active players. Online gambling participation continues to rise, with millions of daily active users across multiple platforms. USA Casino Statistics reveals that nearly 10% of US adults bet on online casino games.
• Annual revenue growth. Leading operators such as Flutter Entertainment report over 27% year-over-year revenue increases, largely driven by improved retention strategies and expanding market accessibility.
• Player retention rates. Top-performing platforms use AI-driven engagement and audience segmentation tools to achieve higher-than-average player loyalty. For instance, AI and machine learning models can detect when it’s best to send notifications to different users, encouraging them to play. Personalized offers can increase player engagement by up to 30%, keeping them active longer than generic promotions.

iGaming market profitability is promising and yet it requires initial investment to ensure a steady business launch. The necessary operational costs and investments include:

• Development costs. A fully functional iGaming platform may cost between $1 million and $5 million, depending on features, scalability, and compliance requirements.
• Marketing spend. Top-tier operators invest over $10 million annually in player acquisition through affiliate marketing, paid advertising, and promotional incentives.
• Compliance Investments. Securing regional licenses and regulatory approvals can range between $500,000 and $2 million, varying by jurisdiction.

Despite necessary development and marketing investment, you can ensure quick ROI within 18–36 months by launching a successful iGaming solution from day one. A successful iGaming platform hinges on three fundamental pillars:

• Scalability and performance. Utilizing high-performance backend systems, cloud-based infrastructure, and real-time data analytics to handle millions of active users efficiently.
• User experience and engagement. Implementing intuitive UI/UX, AI-driven personalization, and gamification strategies to drive player retention.
• Compliance and security. Ensuring full regulatory adherence while integrating fraud detection and risk mitigation tools to maintain a safe gaming environment.

Each of these success factors is covered in the article. In the next section, you’ll discover different iGaming verticals to help you decide which direction to take in iGaming software development.

iGaming segments: From the most to the least profitable

The iGaming industry includes diverse betting and gambling models, each with unique operational needs and market appeal.

• Online casinos. Digital versions of traditional casinos, offering slot games, blackjack, roulette, and live dealer games. The online casino market was valued at $18.97 billion in 2023, with projections to reach $21.61 billion in 2025 (Statista).
• Sports betting. Online sportsbooks allow users to bet on sporting events. With a $15.67 billion market share in 2023, online sports betting is expected to grow to $18.46 billion by 2025. Sports betting accounts for 41% of global players’ preferences (TGM Research, 2023).
• Lotteries and bingo. Digital lottery sales and live-hosted bingo games attract high player engagement in regulated markets. The expected market growth is from $12.68 billion in 2024 to $13.57 billion in 2025.
• Social casinos. Free-to-play platforms mimic real-money online casinos but operate on virtual currency. Often used for player retention and as an entry point to real-money gambling. Global gross revenue (GGR) of social online casinos is projected to reach $7.5 billion by 2026 (Statista). 

Each iGaming vertical requires a unique approach to development, UI/UX, security, and compliance, making custom software development essential for long-term success.

Technologies driving iGaming software development

The iGaming industry in 2025 is being shaped by rapid technological advancements, with innovations in AI, blockchain, cloud computing, and cybersecurity driving a new wave of personalization, security, and scalability. Successful operators are integrating advanced solutions to optimize user experience, prevent fraud, and ensure regulatory compliance, all while maintaining seamless platform performance for millions of users.

Blockchain and smart contracts: Transparency, security, and trust

With trust and security being major concerns, blockchain technology plays a key role in the iGaming industry. Both, crypto traders and gamblers embrace risk, so it’s only natural that blockchain-based online casinos and cryptocurrency-friendly betting platforms are gaining traction, offering players greater transparency and faster payouts. Operators integrating Bitcoin, Ethereum, and stablecoin payments can reduce transaction fees and increase international accessibility.

Decentralized iGaming for transparency

• Blockchain ensures provably fair gaming, where smart contracts make game results fully verifiable and immutable.
• BitStarz Casino, a leading crypto-based casino, has seen an increase in player trust since integrating blockchain verification mechanisms.

Secure crypto transactions and DeFi integration

• Cryptocurrencies now account for 16% of all iGaming transactions (SoftSwiss 2024 report), offering faster withdrawals, lower fees, and enhanced privacy.
• Some platforms are experimenting with DeFi-powered betting liquidity pools, allowing players to stake crypto as liquidity providers and earn interest on betting activity.

Cloud gaming and scalable infrastructure

As iGaming expands globally, operators need scalable, high-performance infrastructure. iGaming platforms must be capable of handling millions of simultaneous users without latency or downtime—especially during high-traffic events like the FIFA World Cup or Super Bowl. The majority of new iGaming platforms launched in 2025 will be cloud-native, ensuring cost efficiency and high availability.

• Cloud-based architectures (AWS, Google Cloud, Microsoft Azure) provide 99.99% uptime, ensuring seamless game streaming and real-time betting.
• Edge computing reduces latency for live sports betting, where milliseconds matter when placing successful wagers.

Cybersecurity and advanced encryption

iGaming platforms are frequent targets for cyberattacks. According to the Cloudflare 2024 report, the iGaming industry was the second most attacked industry (after cryptocurrency) with 2% of all HTTP DDoS traffic for Q4 in 2023. To combat security threats, operators are investing in:

• End-to-end encryption (AES-256) to protect transactions and player data.
• AI-driven anti-cheating algorithms that detect unfair play in online poker and multiplayer casino games.
• Multi-layered DDoS protection to prevent downtime and fraudulent activity during peak betting events.

With AI, blockchain security, and scalable cloud solutions, the future of iGaming technology lies in high-performance, fraud-proof platforms that enhance player trust and experience.

Winning players with smart UX: Design principles for the iGaming industry

With thousands of online casinos, sportsbooks, and poker platforms competing for attention, the difference between a thriving platform and a failing one often comes down to usability, accessibility, and engagement.

According to Hick’s Law, the more choices a user has, the longer they take to decide—a principle highly relevant to iGaming, where poorly structured menus, slow-loading pages, or cluttered dashboards can significantly reduce conversions.

Here’s how leading iGaming brands use UX innovation to boost player retention, engagement, and revenue.

1. Intuitive navigation and speed: How Bet365 keeps players hooked

Bet365, one of the largest online betting platforms, has mastered speed and simplicity. The brand’s minimalist UI, sticky navigation bars, and rapid event updates allow players to place bets in seconds, not minutes.

Lesson for operators: Frictionless navigation and fast-loading interfaces are essential—Akamai research shows that every second of delay can decrease conversion rates by 7%.

2. Data-driven personalization: How Netflix-style AI is changing iGaming

Modern iGaming platforms are adopting AI-driven recommendation engines, similar to Netflix and Spotify, to personalize player experiences.

• Unibet’s AI-powered sportsbook suggests bets based on historical player behavior, team preferences, and live odds fluctuations.
• Casumo Casino offers a customized gaming journey, where returning players see games, promotions, and online betting options tailored to their preferences.

Lesson for operators: Personalized recommendations can increase betting activity by up to 30%.

3. Gamification in iGaming industry: How Stake.com turns online betting into a game

iGaming requires keeping players engaged. Platforms like Stake.com have successfully introduced gamification elements that make online wagering feel like an interactive challenge rather than a transactional experience.

• Daily missions and leaderboards encourage competitive play.
• Unlockable bonuses and XP-based rewards keep players engaged beyond the first deposit.
• Social online gambling features allow users to share wagers and compete in community-driven events.

Lesson for operators: Gamification increases user retention by 35% (Deloitte)—reward structures and interactive elements can turn casual bettors into long-term VIP players.

4. Dark mode and UI accessibility: How PokerStars adapts to player preferences

With long-session gameplay common in iGaming, platforms need visually comfortable and accessible designs.

• PokerStars introduced dark mode and UI customization, reducing eye strain during late-night sessions.
• DraftKings optimized contrast levels and font sizes, ensuring that mobile gaming users can easily read online gambling odds, even under direct sunlight.

Lesson for operators: 82% of users prefer dark mode when available (Earthweb)—customizable themes improve player comfort and retention.

5. Mobile-first and one-tap online gambling: How FanDuel dominates US sportsbooks

With over 50% of iGaming revenue coming from mobile devices (Statista), platforms must ensure a seamless smartphone experience.

• FanDuel’s one-tap betting system allows users to wager instantly, speeding up transactions in fast-moving sports markets.
• LeoVegas’ mobile-first interface ensures that casino games, sports betting, and account management are all accessible within 2 clicks.

Lesson for operators: Mobile-first design increases user engagement by 50%—ensuring lightweight, responsive, and ultra-fast mobile apps is critical.

iGaming compliance in 2025: How to avoid a $10M/Year non-compliance fines

The iGaming industry is one of the most highly regulated digital sectors, with complex legal frameworks varying across regions and countries. According to the SoftSwiss report, in 2025, global gaming regulators are expected to tighten AML, responsible gaming, and licensing requirements, making compliance a crucial business factor.

Europe: A Heavily regulated and mature market

Europe remains the largest iGaming market, with countries like the UK, Germany, and Sweden enforcing some of the strictest regulations worldwide.

• The UK Gambling Commission (UKGC) now mandates real-time affordability checks to ensure that players are betting within their financial limits and mandatory deposit limits for first-time depositors.
• Germany’s 2021 iGaming law introduced monthly deposit limits of €1,000 per player, forcing operators to rethink player retention and revenue models.
• The Netherlands’ new KSA regulations demand stricter advertising transparency, limiting operators’ ability to use bonus promotions to attract new users, particularly young people.

Market insight: In regulated European markets, compliance costs can reach $2M+ annually per operator, including license fees, KYC/AML procedures, and responsible gaming audits.

United States: State-by-state growth and expanding market

The US iGaming market is booming, projected to exceed $40 billion by 2028. However, regulations remain fragmented, as each state independently decides on iGaming legalization.

• New Jersey, Pennsylvania, and Michigan lead the market, with record-breaking online casino revenues in 2024, only in Michigan online casino industry generated $2.4 billion in revenue.
• California, Texas, and Florida remain major untapped markets, with ongoing debates about legalizing online sports betting.
• The Trump administration is providing hope for the US iGaming market with expected beneficial policies for the sector as mentioned by Jonas Diego, a gaming industry leader, in his exclusive interview for SiGMA News.

Market insight: With state-by-state expansion, US operators need adaptive compliance strategies to secure multiple licenses across different regions.

Latin America: A High-growth, emerging market

Latin America is becoming a major battleground for online gambling operators, with Brazil leading the charge.

• Brazil’s 2023 iGaming regulations introduced a 15% tax on GGR, but iGaming operators still see huge profitability potential due to the country’s massive sports betting culture.
• Argentina, Colombia, and Mexico have rapidly expanding online gambling markets, with mobile-first players dominating user engagement.
• LatAm-focused operators are investing heavily in alternative payment methods, as cash-based transactions and mobile wallets remain more popular than traditional banking.

Market insight: Latin America’s iGaming market is expected to grow at 18.4% CAGR by 2028 (SoftSwiss), making it one of the fastest-growing gambling regions worldwide.

Securing jurisdiction-specific licenses can take 6-12 months and cost up to $2 million per region. Failure to comply with AML/KYC regulations can result in fines exceeding $10 million, as seen with multiple UKGC penalties in 2023. Some markets impose strict advertising and responsible gaming rules, limiting how operators can attract and retain players. Let’s discover more challenges awaiting the iGaming industry and how trusted partners like Riseapps can be of help.

Top 7 challenges in iGaming: What’s holding back growth?

While the iGaming industry offers immense opportunities, launching and maintaining a successful platform comes with a set of complex challenges. From compliance hurdles to cybersecurity threats, operators have to strategically overcome these obstacles to ensure long-term sustainability and profitability.

Cybersecurity and fraud prevention

Bonus abuse accounts for 66% of online casino fraud, requiring AI-driven fraud detection and advanced risk-scoring systems. DDoS attacks on sportsbooks peak during major events, with successful attacks causing millions in lost revenue. Account takeovers and payment fraud are increasing, requiring multi-factor authentication (MFA) and blockchain-based identity verification.

Player retention and engagement

On average 50% of players churn within a year if platforms lack personalized experiences and loyalty programs. Gamification strategies, custom AI-driven game suggestions, and VIP reward programs are now industry must-haves. With players demanding instant payouts, platforms must integrate real-time withdrawal systems without compromising security.

Payment processing and multi-currency support

The iGaming transaction approval rates remain low, due to high fraud risks and banking restrictions. Supporting multiple fiat currencies and cryptocurrencies requires integration with trusted payment gateways and blockchain networks. Chargeback fraud and disputes remain major concerns, making AI-powered risk management essential.

Scalability and performance under high-traffic loads

Peak online gambling periods, such as the FIFA World Cup or Super Bowl, require platforms to handle millions of concurrent users without downtime. Poor backend performance can result in slow transaction processing, causing player frustration and revenue loss. Cloud-based solutions and auto-scaling architectures are critical for ensuring high-speed gameplay and live betting accuracy.

Regulatory uncertainty and market restrictions

Changing regulations in key markets (e.g., Germany’s strict deposit limits, and Brazil’s new tax policies) force operators to continuously adapt. Some jurisdictions ban online gambling altogether, pushing companies to secure offshore licenses or adjust their iGaming business models. Future AI-driven gambling regulations may limit data collection practices, affecting personalized marketing and player tracking.

Competitive differentiation in a saturated market

The iGaming space is highly competitive, with thousands of platforms fighting for player attention. Offering unique value propositions (e.g., exclusive games, provably fair betting, esports integration) is critical to standing out. Brand loyalty is low in online gambling, making continuous innovation and engagement strategies essential.

How can your iGaming platform stand out? By following strict regulation rules, adopting smart iGaming business expansion strategies, and constantly looking for ways to improve user experience. But to keep your finger on the pulse of what’s trending in the iGaming industry is also crucial.

iGaming trends shaping the future

Here’s a look at the top 3 trends defining iGaming in 2025:

1. Metaverse and VR casinos: Next frontier of iGaming

Virtual reality (VR) and metaverse-based online casinos allow players to enter immersive 3D environments, interact with live dealers, and place bets using avatars. While still in its early stages, VR gambling is expected to grow at a CAGR of 35.11% through 2032 (Market Research Future).

Examples of innovation:

• Decentraland’s virtual casinos attract thousands of players daily, offering crypto-based gaming with NFT rewards.
• Live dealer VR experiences replicate the atmosphere of physical casinos, enhancing player engagement and session duration.

2. Instant payouts and advanced payment solutions

Players increasingly demand instant withdrawals, and operators are racing to provide real-time payout options via crypto wallets, fintech integrations, and instant bank transfers. The introduction of smart contract-based payout systems is further reducing withdrawal times from days to minutes.

Trend insight: Operators that offer instant payouts see 25% higher player retention rates than those with delayed withdrawals.

3. Emerging markets: Latin America and Africa lead growth

While Europe and North America remain dominant, Latin America (18.4% CAGR) and Africa (7.06% CAGR) are becoming hotbeds for iGaming expansion, thanks to rising smartphone adoption, improved internet access, and regulatory developments.

Key regions to watch:

• Brazil – After legalizing online sports betting, Brazil is projected to become a $9.08 billion iGaming market by 2029.
• Nigeria and South Africa – With mobile-first players driving adoption, African markets present huge opportunities for early entrants.

Why cooperate with Riseapps to develop iGaming software

Developing a high-performance, scalable, and regulatory-compliant iGaming platform requires deep expertise in gaming software architecture, security, and UX design. At Riseapps, we specialize in custom iGaming platform development, delivering feature-rich, secure, and engaging solutions that meet the industry’s evolving demands.

Proven success: Riseapps’ online casino project

We recently developed a social casino solution that delivered a diverse array of games and a user-centered experience, capturing new market audiences. This success story demonstrates the power of a robust tech stack, adaptive UX, and strategic innovation.

Customer request

A leading online entertainment brand aimed to develop a next-generation social casino platform featuring:

• Integration of 30–40 games from major providers.
• A dual-token system for diverse user interactions.
• Secure payment and payout processes.
• An AI-driven recommendation system.
• Compliance with gaming regulations.
• Social engagement features.
• Responsible gaming tools.

Solution

Riseapps delivered a comprehensive platform by:

• Integrating over 40 casino games through APIs from providers like Pragmatic Play and Relax Gaming.
• Implementing a dual-token system comprising Gold (purchases) and Sweepstakes (entries).
• Ensuring secure transactions via APIs such as Authorize.net, Paysafe, and Prizeout.
• Developing a mobile-responsive interface with a seamless user experience.
• Integrating an AI-driven recommendation engine to personalize user experiences.
• Ensuring full compliance with gaming regulations through robust encryption and secure data management.
• Creating social engagement elements like leaderboards, challenges, and achievements.
• Promoting responsible gaming with features such as deposit limits, self-exclusion options, and activity tracking.

Results

The platform successfully: 

• attracted over 100,000 users within the initial months post-launch.
• achieved a projected revenue target of $50 million.
• ensured 100% compliance with gaming regulations.

Why Riseapps?

• Full-cycle iGaming development. From concept to launch, we deliver turnkey gaming solutions that meet compliance, security, and market requirements.
• Regulatory expertise. We build platforms that adhere to UKGC, MGA, Curacao, and US state-based iGaming regulations.
• Custom AI and blockchain integrations. Future-proof technology stacks with provably fair gaming, smart contract payouts, and AI-driven user engagement.
• User-centric design. UI/UX expertise that enhances player experience and conversion rates.