How AR and VR Will Drive the iGaming Market of the Future?
Posted by Harry Kane on Friday, May 13, 2022
There’s no doubt that augmented reality (AR) and virtual reality (VR) are cutting edge technologies that continue to shape a number of different industries and marketplaces. These include the global iGaming space, which was valued at $63.53 billion in 2022 and is set to grow exponentially thanks largely to rapid and continued expansion of the US market.
Interestingly, it’s usually VR that’s talked about in relation to online gambling, and particularly virtual casino gameplay. However, AR also has the potential to be a seminal and transformative technology in the marketplace, and one that may see particular growth and expansion in the coming months and years.
In this article, we’re going to comprehensively review the potential impact of AR and VR in the world of online gambling, while asking which of these two related technologies will prove to be the most effective. Let’s get into it!
The Combined AR and VR Market Size
As we can see, the global iGaming market is a high growth and lucrative entity that continues to go from strength to strength. The same can also be side for the combined AR and VR market, which peaked at $28.5 billion at the end of 2021 and is expected to see its value rise exponentially through 2030.
More specifically, this marketplace is projected to grow at a compound annual growth rate (CAGR) of 24.2% between now and 2030, before peaking at a staggering $200.1 billion in seven years’ time. These numbers make for incredible and impressive reading, while they highlight just how influential and widespread AR and VR technologies are set to become in the coming decade.
More specifically, this prospective growth is largely ascribed to the growing prominence of such technologies in fields like tourism, healthcare, education and iGaming. At the same time, enterprise and industrial applications are becoming increasingly dependent on AR tech in particular, especially for on-site enhancements and digitisation.
Despite the fanfare that surrounds VR and its various applications, it’s AR that continues to hold the larger revenue share. This is largely attributed to the growing focus of businesses on exploring innovative methods for disciplines such as sales and marketing, in order to create a more appealing and immersive experience to customers across the board.
At the same time, AR technology is also easier and much cheaper to access than VR, which requires dedicated and often expensive hardware. Conversely, you can leverage AR tech
and software through a smartphone, making augmented reality much easier to discover and leverage across a broad range of applications.
What’s the Difference Between AR and VR?
Despite their similarities and the fact that the terms ‘AR’ and ‘VR’ are regularly used interchangeably, these are two distinct technologies that accomplish two very different things. They also achieve their objectives in markedly different ways, notwithstanding the crossover in terms of design and how the technologies are applied.
In fact, there are numerous differences that separate AR and VR technologies, but the core distinction is that while virtual reality replaces your vision and immediate surroundings, augmented reality adds to and embellishes your environment. Below, I’ve broken down some of the core differences in a little more detail:
Settings and Your Environment
As we’ve just touched on, AR utilises a corporeal, real-world setting to enhance a particular process or experience. Conversely, VR immerses users in a completely virtual, three-dimensional environment, which in the iGaming space would involve placing customers at the centre of a corporeal and interactive casino experience.
Control and Navigation
When using AR technology and hardware, users are able to control their presence in a real-world setting. However, VR users are controlled by a third-party system or setting, as they’re immersed in a completely virtual world that would not exist if not for the underlying technology.
The Hardware Involved
We’ve already spoken about the greater accessibility associated with AR, as dedicated software and augmented reality apps can be used in conjunction with a smartphone. Conversely, VR technology requires a dedicated and potentially expensive headset device, making it less accessible for smaller businesses or individual users.
The Difference Between Physical and Real-World Interactions
Ultimately, AR melds elements of the virtual and corporeal worlds, while enhancing both as part of an immersive experience. In the case of VR, this creates an optimised fictional reality, which is totally immersive and removes you from your physical setting.
Clearly, there’s a significant crossover between these two technologies, while both AR and VR are powerful concepts that offer value across a broad range of applications. However, it’s clear that the former is more accessible to users, both in terms of cost and helping beginners to navigate this type of technology while leveraging real-world and virtual elements.
This is borne out by the fact that AR already holds a dominant share of the combined marketplace, while augmented reality apps and tools are arguably more widely used within the economy. For example, educational and training sectors are heavily invested in AR, as are the manufacturing, construction and real estate industries.
Retail is also a big adopter of AR. For example, the iconic sports brand Nike has been using AR (and to a lesser extent, VR) in selected physical stores for years, enabling customers to scan corporeal, in-store items before accessing a virtual setting that exposes how products are designed, sourced and made.
Similarly, IKEA has developed its dedicated ‘The Place App’, which enables its customers to use their smartphone’s AI capabilities and camera to actively place items of furniture in their homes. As a result, they can visualise how a particular piece will look in their existing interior, enabling them to make more informed product selections both on and offline.
While VR technologies are also used across similar applications, the cost of this innovation makes it less accessible and commonplace across most sectors. At the same time, AR arguably offers more value from the perspective of commercial and retail applications, due to its unique ability to blend core elements of the physical and virtual worlds.
AR and VR in the iGaming Market – An Overview
This brings us neatly onto the iGaming realm, where both AR and VR applications have begun to impact casinos in developed markets such as the UK. Arguably, VR technology was the first to make its mark in the industry, with virtual reality-inspired slots and casinos first appearing long ago.
Nowadays, you can find a full range of VR casinos and poker rooms available online, each of which provide immersive, 3D gambling environments for players and dealers alike. This also includes a growing number of social casino games where you can play without having to wager your hard-earned cash, which is ideal for casual players who want to enjoy a purely fun and interactive experience.
You can also find dedicated VR blackjack, roulette and slots sites, which can usually be accessed on or offline and allow you to immerse yourself in individual games and verticals. VR-inspired blackjack allows you to interact directly with corporeal dealers and other players, while slots that have been similarly designed can create fascinating virtual worlds for you to explore while pursuing real money returns.
But what about AR gambling apps and platforms? Well, casinos have also started to explore this technology and its potential applications, particularly as players begin to understand more about augmented reality and how it can impact on their iGaming experiences. This is also seeing the demand for AR games increase in the UK and similarly developed markets, and casinos are looking to act on this across the board.
According to a study carried out by LotteryCritic, around two-thirds (66%) of UK gamers are interested in AR gaming, and its aforementioned ability to combine elements from the corporeal and virtual worlds. This will also enable them to interact with their surrounding environment and other players, while elevating the online gambling experience to a whole new level.
AR also offers greater flexibility and scope than VR technology, as it enables players to customise their iGaming experience with a number of relevant settings and features. As a result, each gaming session that you enjoy can be tailored to suit your own bespoke preferences, depending on your physical environment and the software (and hardware) that you’re using.
Of course, the nature of AR means that you can bring an authentic, three-dimensional casino experience into your home, rather than having to immerse yourself in a completely virtual location. This way, you can tailor the experience to incorporate your immediate physical surroundings and integrate your home comforts, while seeing cards drawn and the roulette wheel spin as though it was in front of you!
When playing AR-inspired poker games, a tremendous emphasis is placed on social interaction. After all, you can play while seeing your opponents’ avatars within the virtual space in real-time, making it possible to interact and communicate with them as though you were playing in a physical, real-world poker room.
In the medium and longer-term, we expect to see AR casinos and verticals become more popular and widespread than VR alternatives, especially in an age where players are starting to learn more about augmented reality and showcasing an increased demand for this type of iGaming experience.
The Bottom Line – The Increased Accessibility of AR in the iGaming Marketplace
We’ve already spoken about the lower cost and increased accessibility of AR technology across all iGaming applications, as this can be leveraged using a modern-day smartphone and its camera functionality. This is probably a key driver of the growing demand for AR-inspired casinos in the UK, as the technology enables players to enhance their gameplay experience without having to invest in expensive hardware.
But what about online casino brands and platforms? Well, it’s inarguable that AR software is significantly easier to develop than VR alternatives, simply because there’s no need at all to create rendered and completely unique backgrounds. Remember, AR technology utilises your physical environment as the background, into which virtual casino elements are subsequently integrated.
In contrast, VR platforms create nearly fully simulated virtual environments, and these need to be carefully rendered in order to generate truly immersive and realistic visuals. This is a much harder task and requires more complex software, making it a challenge for casino platforms to develop VR games in a quick or affordable manner.
Remember, casino brands can also leverage AR to give their players far greater control over their experiences when playing online. So, rather than investing in costly software and VR app technology that creates virtual experiences for players, they can spend less on integrating AR capability and enhancing existing slot games.
Such enhancements can vary in terms of their nature and scope too. For example, you could tailor your wins to include a shower of gold coins flying across the screen at the end of a bonus round, which can then be shared in real-time through your social media profiles. In the future, we’ll also see developers add options to help players enhance different facets of gameplay, such as triggering snow showers when playing winter-themed slots and titles.
Aside from its cost and accessibility, the most important element of AR is its versatility and ability to enhance existing slot games and casino verticals. This enables operators to create a convenient and cost-effective solution that can directly improve gameplay, while allowing players autonomy with regards to the experience that they enjoy when online.
This is a win-win for all parties involved, and there can be no doubt that AR technology offers a more viable option for online gamblers and iGaming platforms alike. This is particularly true in the current micro and macroeconomic climate, where inflation continues to rage and an increased base interest rate makes it harder for businesses and households to borrow money.