Has the industry lost its taste for cutting-edge innovation?  

The future of gambling innovation: Navigating customer demands and emerging technologies

In the evolving landscape of the gambling industry, the promise of virtual reality (VR) and smart home devices has yet to materialize, stirring questions about the pace of innovation. As consumer behaviors shift, how will operators adapt their strategies to foster a more engaging and dynamic gaming experience?

A stroll through the vast exhibition halls of ICE London five years ago showcased a range of visionary technologies. Suppliers eagerly introduced journalists to groundbreaking offerings—from immersive virtual reality slots to sophisticated smart devices meant to revolutionize online betting and gaming. Each innovation painted a vivid picture of a future where our daily experiences intertwined with augmented reality (AR) and VR, complemented by blockchain technology fostering unprecedented transparency in gaming sectors.

However, as time has passed, many of these technological trends have dimmed, leading industry experts to question whether operators are retreating from ambitious ideas or merely adopting a more calculated approach to future innovations.

The Necessity of Innovation

Matt Howard, a partner at Propus Partners and CEO of the sports betting startup OrbitalBet, identifies critical factors contributing to the waning enthusiasm surrounding past innovations. “The key question remains: what specific improvement or problem does this new technology or feature address?” he asserts. “Without a compelling answer, investing in such innovations may not be prudent.”

The fleeting excitement surrounding VR, particularly following Google’s launch of the Google Lens headset in 2017, serves as a pertinent example. Despite initial optimism for widespread adoption among a broad audience—including casual users beyond hardcore gamers—interest within the gambling sector did not gain the anticipated traction. Howard notes, “It seems there wasn’t a significant demand for these technologies within the gambling sphere, as players weren’t clamoring for VR experiences.”

Exploring Cryptocurrency and Blockchain

Conversely, some emerging technologies have demonstrated lasting relevance. Cryptocurrency, for instance, has gained substantial momentum both within and outside the gambling industry. Since 2019, Bitcoin has soared by over 2,500%, with jurisdictions like Malta and Japan integrating it into their economic frameworks. Online gambling operators benefit from cryptocurrencies, which offer swift, low-fee transactions while ensuring user anonymity—critical factors for both operators and players.

However, the practical applications of blockchain technology remain less clear. Howard explains, “Many companies have pondered building entire platforms on blockchain, yet the core question remains: what unique advantage does blockchain offer over existing technologies?” While blockchain could enhance payment security, its energy-intensive nature may hinder the rapid transaction processing essential in the gambling sector, a fact that Howard emphasizes by referencing the strains placed on systems managing high volumes of bets.

Understanding Consumer Behavior

Navigating the intersection of technological innovation and consumer readiness is pivotal for stakeholders across all sectors. The adoption of technology often follows a predictable trajectory, as described in Everett Rogers’ 1962 publication, *Diffusion of Innovations*. Early adopters represent a mere 2.5% of the population, while the majority—comprising laggards—accounts for 50% of the market.

Rich Criado, former VP of product development at Fanatics Game Studios and Penn Entertainment, insists that understanding customers’ willingness to embrace change is central to pacing innovation. “In the online casino market, we see disparities in how quickly different segments adopt innovation,” he notes. “Audiences in mobile gaming adapt to change more readily than traditional casino customers.” This discrepancy, particularly evident with VR technologies, demonstrates a mismatch between customer expectations and emerging capabilities.

“The average casino patron is unlikely to don a cumbersome VR headset just to play a game,” Criado continues. “It’s an intriguing technology, but it’s not practical for the typical customer, who prefers the convenience of mobile play.”

Embracing Incremental Change

Despite challenging conditions, Criado contends that incremental innovation is possible within the iGaming space. “I anticipate that innovation will not manifest as a single, revolutionary ‘killer app’ but will occur through gradual enhancements to existing gaming experiences,” he explains.

By incrementally introducing new features—whether a multiplayer option, a crash game, or an innovative gamification element—creators can adapt thoughtfully to market demands. Criado observes, “As these elements accumulate, we may eventually see the US market mirroring the EU market’s advanced gaming landscape filled with highly engaging and visually stunning experiences.”

Driving Forces Behind Innovation

While some technologies have struggled to gain a foothold, others—like artificial intelligence (AI) and machine learning (ML)—continue to exhibit significant potential. As indicated in Softswiss’ latest iGaming Trends report, industry stakeholders rated the importance of AI and ML at 8.2/10 for 2025. Applications such as personalization, automated decision-making, and problem gambling detection are highlighted as key areas where AI can add value.

However, adoption comes with caveats. Howard asserts that the integration of AI and ML must be thoughtfully executed. “Recognizing the importance of these technologies is crucial, but the challenge lies in determining their most effective applications within a legacy environment,” he remarks.

Fostering a User-Centric Gaming Experience

Global operators are increasingly prioritizing personalization in product development to meet diverse player needs. For example, Flutter has trialed ‘Your Way Betting’ in Colorado and West Virginia, offering customers unprecedented flexibility in line selection through a new pricing model. Similarly, Entain has revitalized its Bet Builder product in the UK, enhancing customization options for bettors, and significantly expanded its offerings through the acquisition of analytics company Angstrom Sports.

The trend of acquiring innovative startups extends to micro-betting, as exemplified by DraftKings’ acquisition of Simplebet for approximately $195 million. Howard aptly observes, “Major innovations frequently originate from nimble startups, allowing larger entities to replicate or acquire successful models later.”

Navigating a Steep Learning Curve

The US market, still largely shaped by major land-based casino brands, faces challenges in enhancing user engagement. Criado notes that features such as tournaments, leaderboards, bonuses, and progressive jackpots—already prevalent in European markets—were notably absent in early U.S. iGaming. However, increased focus on these elements was evident at recent industry events like G2E.

“Feedback has indicated a need to provide not only foundational gameplay but also engagement tools to sustain player retention,” Criado adds. Nevertheless, he warns that translating the vibrant social dynamics of land-based casinos into online experiences remains a significant hurdle. Recent initiatives from operators, like MGM and Playtech streaming live games from their Las Vegas floors, are promising steps in this direction.

Appealing to New Generations

Criado advocates for maintaining an outsider’s perspective to cultivate authentic innovation, suggesting that the gambling industry could learn from gaming titans like Fortnite and Grand Theft Auto, which excel in integrating gambling mechanics. “These games offer richer, more experiential elements, generating revenue without altering core gameplay—insights that could prove vital for attracting younger audiences,” he advises.

As older millennials approach their forties, the question becomes whether they will engage with gambling games that require less player agency. “The future hinges on addressing the demands of a generation that has grown accustomed to substantial interactivity in their gaming experiences,” Criado states.

Envisioning Tomorrow’s Gaming Landscape

Creating a sense of player agency in luck-based games presents challenges, yet potential exists. During his tenure at Fanatics, Criado developed a game, Field Goal Frenzy, where players choose their distance from a goalpost. Increased distance offers higher rewards but lowers winning chances, lending players a sense of control over their performance. “While they don’t influence game outcomes, players feel more engaged with their experiences,” Criado explains.

This experimental approach indicates that the industry’s future lies not just in technological advances but also in adapting to new audience needs and preferences. Although such experiences may not be in immediate demand, they could emerge as essential innovations as new players explore casino offerings in the coming years.

“What excites me most is the vast runway ahead for innovation,” Criado concludes. “We are only just beginning to tap into new possibilities.”