Casino software is the backbone of the iGaming industry. Its innovations are the driving force behind its record revenue figures.

When you log onto an online casino, what are the first things you are presented with? Do you see the classic table games or well-played slots pushed under your nose for the 100th time? If your operator is any good, it is more than likely that you see a range of new exciting titles. From vibrant, colourful slots to sleek live gameshows, new material is the backbone of the sector. It attracts new customers and keeps old ones coming back. It is these casino software trends that drive stock performance in the iGaming sector.

The Explosive Growth of Online Casinos

Data from the European Gaming and Betting Association predicts that the online sector will represent 40% of all gambling revenue in Europe when the final figures for 2025 arrive. In the US, the American Gaming Association gave its 2024 figures for iGaming and online sports betting as being in excess of $19 billion. Growth continues apace in US states that have instigated legalised gambling platforms, building trust with consumers.

This trust has been enhanced by informative websites like VegasSlotsOnline. These third parties provide helpful insights into the industry, aiding customers in finding games and platforms that are right for them. People can visit, then scroll through ranked and reviewed operators, or find game developers and the titles they provide. All of this has increased access, while helping weed out those casino platforms that offer less than stellar customer service, transparency and fairness.

Sites like this know the value of casino software and how it can shape the industry. The website notes that “Casino software providers create countless new games every year, and each company in the industry has their own style, strengths and weaknesses… if a provider is getting the spotlight at online casinos, it means they’re probably doing something right. –VegasSlotsOnline”

What Factors Have Pushed the Popularity of Online Casino Gaming?

Online casino gaming and its rising popularity can be put down to a few factors. Most of this comes back to the smartphone and its prevalence in our daily lives. They have now become much cheaper than they used to be, while still providing a powerful platform for everything from communications to entertainment. This is especially true in many emerging markets. Africa is a good example of this, where around 33% of the world’s unconnected population resides. This number is changing quickly, though, as between 2015 and 2024, the usage gap rose to 64%.

Smartphones also take away many of the annoying factors that previously held online gambling back. These included payments, filling in forms and data. With e-wallets and banking integration, payments can be made in a few clicks. You don’t need to keep filling in data, from personal details to passwords. With a mobile, you just have to open up the app, and after the first time giving details, you’re away. This is a much smoother sales funnel from consumer to product.

Lastly, phones have an advantage over desktops due to convenience. They are with you all the time and so can be booted up to play in the smaller moments. This may include a stolen ten minutes with a morning coffee, or fifteen minutes on the commute to work.

How Does Innovation Drive Stock Performance?

Computer scientist Roy Amara once said that investors tend to overestimate the impact of technology in the short term and underestimate the effect in the long run. We have seen this numerous times through history. The ‘video game’ boom and bust in the eighties, the ‘.com’ boom and bust in the nineties. Many even believe we are currently hurtling towards a similar path with AI and it could be that we may even be in a slight iGaming bubble right now.

What is certain is that innovation does drive stock performance. The European Central Bank has noted that “One of the major benefits of innovation is its contribution to economic growth. Simply put, innovation can lead to higher productivity, meaning that the same input generates a greater output. As productivity rises, more goods and services are produced, in other words, the economy grows.”

Imagine this in the context of an iGaming software developer. They create a new hybrid title. It involves a live casino game along with an existing license from a third party, much like Hasbro’s Monopoly iGaming titles.  This allows them to appeal to existing iGaming clients, but also pool fans from another vertical. It is a tried and tested method, but with new technology and innovation involved.

This is then sold to operators, who put it on their websites and sell it as the next big thing. The developers are still using the same channels to get the game out, but now have extra income. They are getting greater output from the same input. As more goods and services like this are created, it stimulates profitability and with that comes a rise in stock prices.

We have seen this numerous times over the past few years. Namely, innovations have come from live casino and crash gaming titles. These were ideas which took online casinos from being more than just digital representations of age-old table games. Instead, they turned them into social events. It is this forward thinking that has pushed stocks in iGaming more than AI or augmented reality ever have, as people shift to requiring interaction and human contact in a digital world.

The Modern Era of Regulation

Technology alone can not take the credit for a rise in iGaming revenue, and in the last few years this growth has also been down to a shift in attitudes. This could be termed the era of regulation. Many of the major Western markets have begun to establish their legislated operations, with others following suit when they see the taxable revenue it can bring. This has proven to be a balancing act: Managing to keep social responsibilities at the forefront and getting as much tax possible, without overburdening the system and driving people to unlicensed offshore casinos.

Now that this has played out, many countries that would not have even considered allowing online casino gaming before are changing their rules. In January, the UAE quietly changed its regulations relating to online casinos, granting a license to Play 971. Only available in the country itself, the website now brings gambling to an area that was formerly strictly against it on religious grounds. This follows the laying of a state-of-the-art casino complex in the country spearheaded by Wynn Resorts.

This must also be heeded as a warning, however. More emerging markets sound like a win-win situation, yet the Middle East and Africa account for only 6.8% of the global casino market. These are also areas where gambling has typically been seen as taboo. Simply changing the laws is not enough; the attitude of people must change. This is a contrast to places like the United States. Here, seven states have allowed online casinos, and the other seem unlikely to change their views anytime soon. Thus, if growth comes only from emerging markets, it could be much slower and smaller than in the past.

Some markets can also vanish due to regulatory change. See the formerly burgeoning Indian market, which was wiped out overnight due to government intervention last year.

This was echoed in an investor note from J.P. Morgan, which arrived in January. Analyst Daniel Politzer noted that “Gaming stocks are carrying a lot of baggage and negativity right now,” going on to note that these stocks “are dogged by investor concerns on handle growth, prediction markets and regulatory and tax risk.” While he did admit that gaming stocks were the ones most likely to outperform projections, he was cautious of these other concerns.

A Deep Dive Into Online Casino Stocks

When looking at online casino stock, much of Politzer’s outlook rings true. It is a topsy-turvy vertical, and the data can often tell a different story from the large revenue numbers and figures that steal headlines. Taking a look at some of the biggest companies on the planet when it comes to software development, the picture is a very patchy one.

Evolution Gaming is one of the foremost developers of casino software. A quick glance at their website and you can see the breadth of games they offer. From fresh slots to live gameshows, they have been at the cutting edge of casino gaming for some time. Their stock stands at 587.8 as of late January 2026. This is down from 1341.5 in February 2024, and it’s the five-year high of 1672 in April 2021. In contrast, stocks for companies like Aristocrat have forged a different path. While they did reach 75.57 in January 2025 and have dropped to 54.43, they are a lot higher than their five-year low of 30.94.

The picture is equally as sporadic when looking at the providers of these games as opposed to the developers. Over the last five years, DraftKings performance has been a wave of peaks and troughs, ranging from highs of 61.33 in March 2021 and lows of 11.99 in December 2022. Of the major gambling providers, only Boyd Gaming has provided anything that looks like a steady upward curve over the last five years, and even that has been highly erratic.

Has Online Casino Software Driven Stock Performance?

Thus, new casino software may not be driving stock performance for the developers. However, it does seem to be having a huge impact on the stock prices of the operators providing them.

Online casinos have grown over the last few years in terms of revenue; there is no doubt. This has undoubtedly come from attracting new players and customers, and innovation is a huge part of that.

Yet there are also other factors at play, including regulations and smartphone adoption. As emerging markets become smaller and growth in larger markets flattens out, innovation may have to take a larger part in attracting new customers. With this, we may see the stock prices of developers rise as operators demand their services more while they hunt for the next big thing.