The Growth of Online Casinos
Between 2024 and 2025, the online gambling market grew by 10.6% and it is projected to grow by 11.9% between 2025 and 2030. Europe dominates the industry, accounting for 41% of the global share. Several factors have contributed to this growth, with the increase in mobile phone usage being one. Around 40% of players access European online casinos through their phones.
The introduction of cryptocurrency payments in online casinos increased transactions by 20%. This could be due to the level of anonymity it offers users, who may not want their casino transactions to appear on their bank account. AI has also contributed to this growth by making casinos safer and more secure and boosting player trust.
The Impact of AI on Online Casinos
Artificial Intelligence (AI) has dramatically transformed many industries around the world. From sectors as diverse as finance, healthcare, and agriculture, it seems that no organisation is immune to the effects of AI, and online casinos are no different. These changes have occurred rapidly and show no signs of slowing down, with almost endless possibilities for the application of AI technologies.
Online casino processes and player engagement can be improved by using advanced AI technologies. This can have several positive effects on online gaming sessions.
- Personalised Player Experience: AI can analyse real-time data to provide players with tailored promotions. By reviewing gaming history, time spent playing, and personal preferences, casinos can recommend exclusive, relevant offers that contribute to player satisfaction. If players are getting what they want from their casino experience, they are more likely to remain loyal to an operator.
- Additional Security: Security breaches are often in the news, and a breach of casino encryption could do untold damage to players. If your financial details get into the wrong hands, your life savings could be gone before you even notice. AI can monitor transactions and recognise or even predict patterns of behaviour so that anything suspicious is flagged immediately.
- Fraud Prevention: More advanced AI systems can use biometric systems to authenticate identity using fingerprint or facial recognition. This prevents professional fraudsters from using casinos to move illegal funds, but also protects players by denying unauthorised access to their accounts.
- Operational and Content Optimisation: Automated AI processes minimise human errors, identifying and predicting technical issues before they become a problem. AI analytics can forecast trends in online gaming, meaning the casino can offer the most popular games and promotions.
Is AI Good For The Environment?
There is a buzz surrounding the potential benefits of generative AI, including increased productivity and advances in scientific research. The consequences to the environment of the rapid adoption and growth of this technology in many industries, online casinos included, may be hard to accurately determine. Some areas of interest are discussed below.
Training Generative AI Models
AI models must be trained before they can provide any output or make any predictions. To perform tasks that normally require human intelligence, they require vast amounts of knowledge input. This model training consumes staggering amounts of electricity, which increases carbon dioxide emissions and draws power from national grids, putting them under pressure to provide a consistent supply to homes and businesses.
The Real-World Applications of AI
Using AI models in real-world settings means enabling millions of people to access generative AI in their daily lives. Every time you use the chat function at your favourite online casino, you are engaging with AI. These models are constantly fine-tuned for improved performance. Both of these actions mean that AI continues to use vast amounts of energy after the development phase, creating additional emissions.
Data Center Operation
Data Centers are temperature-controlled buildings that house servers, data storage drives, and network equipment. While they have been around since the 1940s, AI use has dramatically increased the number of Data Centers in operation and under construction. Data Centers now use more energy than some countries. Apart from the massive energy usage, Data Centers require huge amounts of water to cool the machines and prevent them from overheating.
The Impact of Crypto on Online Casinos
Crypto has come a long way since Bitcoin was first launched in 2009. There are now numerous digital currencies, and it is used in many industries and by various institutions around the world. Bitcoin introduced the concept of blockchain technology, which allowed digital assets to be transferred without intermediaries. Cryptocurrencies are decentralised, without the need for banks and governments.
The rise of crypto online casinos has had several positive impacts on both players and operators. Let's take a look at some of these in more detail.
- Robust Security: Blockchain technology ensures that when you deposit money into their casino account using crypto, the transaction is securely recorded on a decentralised ledger. This protects your identity and eliminates the need to share financial information with third parties.
- Sense of Trust: When you choose crypto as a payment method at an online casino, the transaction can be tracked in real time and its completion can be verified. This creates a level of transparency that might not be available with other payment options and further boosts trust between players and operators..
- Speedy Transactions: Crypto transactions are faster when compared to traditional payment methods. There are no delays or additional processing times, allowing you to enjoy a seamless gaming experience with instant deposits and withdrawals. A must for modern-day players.
- Cost Effective Option: If you use cryptocurrencies at online casinos, you can benefit from fees that are generally lower than traditional payment methods. This means you have more funds to contribute to actual gameplay, and when you make a withdrawal, you can keep all of your winnings.
Cryptocurrency's Effect on the Environment
The explosion of the crypto market has been compared to the gold rush, and some people have hailed crypto casinos as an eco-friendly online gaming option, but is this actually true? Moves by online casinos to renewable energy sources may be offset by the environmental impacts of crypto mining.
Mining Energy Consumption
Some cryptos, including the most popular Bitcoin, have energy-intensive mining practices, the automated process of verifying transactions. The UN estimates that between 2020 and 2021, Bitcoin mining consumed more energy than Pakistan. To offset the emissions, 3.9 billion trees would need to be planted, covering an area equal to 7% of the Amazon.
Immense Water and Land Usage
As with AI, water is needed to keep the crypto equipment from overheating. The UN estimates that in the year from 2021 to 2022, Bitcoin had water usage equivalent to the domestic water needs of more than 300 million people living in rural sub-Saharan Africa. It also had land usage equivalent to 1.4 times the area of Los Angeles in the same period.
Reliance on Fossil Fuels
The UN report states Bitcoin mining relies heavily on fossil fuel. Coal supplies 45% of Bitcoin's energy, natural gas accounts for 21%, Hydropower (which is not as environmentally friendly as you might think) comes in at 16% and nuclear adds 9%. Wind provides just 5% and solar a tiny 1%.
Other Environmental Consequences of Online Gambling
We've mentioned Data Centers in relation to AI and crypto, but all the online games you play and the other aspects of the online casino you access all have to be stored somewhere that can provide you with ready access. Data Centers in the US account for approximately 2% of all energy use and produce emissions equivalent to 24 million cars.
Electronic waste is another environmental concern, with online gambling producing a high level of device turnover. Technology quickly becomes obsolete or requires upgrading to remain current. When components are no longer useful and are discarded, they add to the increasing issue of e-waste. E-waste contains toxic materials that can contaminate soil and water.
Online Casinos Going Green
Traditional casinos must maintain physical structures like buildings and machines, and their energy consumption is easily noticeable. Online casinos, as I've mentioned, rely on consistent internet connectivity, data centers, and servers. This online infrastructure, although invisible to us when playing online, requires substantial energy to operate. Massive consumption of electricity and water leads to impactful emissions. So, what are online casinos doing to become more sustainable?
There is a shift in the online casino industry towards more energy-efficient sustainable practices, with operators acknowledging the importance of greener practices.
Casinos Move Towards Renewable Energy Sources
Among online casinos, a shift is underway towards greener hosting solutions like eco-friendly servers powered by wind or solar energy. This reflects a commitment to responsible business practices and aligns with global sustainability targets.
Sustainable Gaming Platforms
Advances in technology have made eco-friendly gaming platforms a reality. They use enhanced software and hardware design to minimise energy usage while still offering high performance. Data Center operations and server management are optimised to reduce overall consumption.
Companies like NetEnt and Play'n GO strive to utilise energy-efficient technologies and renewable energy sources. Companies also use eco-friendly or recycled materials where possible while adopting eco-friendly manufacturing processes.
Integrating sustainable practices allows software developers to reduce their environmental impact and contribute to lower emissions throughout the online gaming industry.
Carbon Offsetting and Responsible Waste Management
Some online casinos are taking a proactive stance when it comes to offsetting their environmental impacts. This includes reforestation projects and investment in renewable energy to reduce reliance on fossil fuels, thereby supporting the development of alternative energy sources. They are committed to responsible waste management through waste reduction strategies and recycling programmes, which contribute to the circular economy.
Players Can Contribute to Greener Gambling
If you think you cannot contribute to greener gambling, think again. There are several simple steps players can take to reduce negative environmental impacts.
- Reduce energy consumption by playing on energy-efficient devices like mobiles or laptops instead of desktops.
- Use WiFi instead of mobile data as it generally requires less energy.
- Adjust screen brightness and close inactive apps to reduce power usage.
- Do not leave devices on standby as this can use up to 75% of the energy it takes to run your device.
- Consider placing a time limit on your gaming sessions.
- If you use crypto, opt for currencies like Dogecoin or XRP that have lower energy consumption.
- Frequent players can offset their impact by donating to environmental projects.
Final Roundup
I hope this article has helped you understand the environmental impacts of online gambling. The shift towards more sustainable practices gives me hope for the future of the industry. When choosing online casinos, do a little research and try to choose greener alternatives.
Try to remain conscious of the energy that is being consumed during your gaming sessions and take small steps to change unsustainable habits.
