What if someone told you that one of the most undervalued economic factors in SME countries is iGaming? It may not make headlines like oil or agriculture, but in recent years online gaming, especially regulated sports betting platforms and casinos, has quietly begun plugging budget holes, funding tech growth and even promoting fintech in countries not typically associated with global entertainment or technology exports.
This trend is not about flashy jackpots or casino glamor. We are talking about infrastructure, regulation, cross-border digital trade and tax revenues. And countries that were once distant from the global gaming conversation are now building a new kind of digital ecosystem around it.
The economic power of iGaming is not just a big nation's game
Most conversations are dominated by leading iGaming markets such as the UK, Italy and the US. But dig deeper into licensing reports, digital tax systems and fintech acceleration hubs and you'll find names like Georgia, Kenya, the Philippines and Peru starting to pop up with real traction.
These “unlikely countries” are seizing a triple opportunity:
- Rapid growth of digital infrastructure (thanks to smartphones and 4G/5G adoption)
- Governments are looking for new sources of tax revenue without raising income taxes
- Young people hungry for mobile entertainment
The growth is not uniform, but the patterns are repeated. Countries that invest in regulation and strike a balance between control and accessibility see economic results extend beyond gambling revenues.
Where are online sports betting and casinos suitable?
One of the main pillars of the iGaming ecosystem is online sports betting. In many of these regions, football draws the crowds, but basketball, tennis and even e-sports are gaining popularity. Betting platforms often serve as a gateway to the wider world of iGaming, which includes online slots, live dealer games and themed casinos.
There are platforms such as betway casino play a role. Such platforms, while often viewed through a consumer lens, drive innovation in digital payments, require local server infrastructure, support affiliate marketing networks, and must comply with tax and licensing rules, injecting cash and compliance into the local economy.
Online casinos in particular are creating a domino effect in digital entrepreneurship. Local content creators create game review sites. Developers create payment gateways for specific regions. Marketing agencies are moving to affiliate models. In regulated markets, a casino platform can be more than just entertainment, it becomes a node in a digital business cluster.
Real-life example: the impact of iGaming in Georgia exceeds expectations
Georgia, a country of just 3.7 million people, has become a prime example. Its iGaming market, led by companies such as Adjarabet and EuropeBet, has grown rapidly since 2015. By 2022, more than 7% of Georgia's total tax revenue will come from gambling revenue, most of which comes from online transactions.
These revenues have helped fund much of the country's tech education initiatives, including Tbilisi-based programming academies and startup accelerators. In parallel, the country has become a hub for cryptocurrency exchange startups and blockchain innovators, helped in part by the overall infrastructure and regulatory flexibility introduced for the gambling sector.
The conclusion is not just income numbers. This is how the tax footprint of one industry can accelerate the development of the digital economy of an entire country if managed correctly.
Economic spillovers go beyond simple income
It's easy to assume that iGaming only helps through tax revenue. But second-order effects are worth noting. The most notable include:
- The growth of digital payment systems. Mobile money services are thriving in regions with high iGaming activity. Nigeria's Flutterwave, for example, saw early adoption on platforms in need of reliable payout systems.
- Content translation and localization services. As international platforms expand into new markets, demand for local language services, compliance experts and regional UX consultants increases.
- Tourist Crossroads: In countries like the Philippines, where online games is a huge export to other Asian markets, traditional locations linked to licensed online platforms have created employment hubs and travel corridors.
What the numbers show
From the beginning of the year to July, iGaming revenue reached $5.95 billion.which is 28.7 percent more than the same period last year. A significant portion of this amount comes from non-core markets.
And here's what's remarkable: this growth did not occur due to a sharp increase in the number of players. This has happened through regulation, enforcement and ensuring that offshore operators are either licensed or blocked from the market. In turn, governments gained financial breathing space and the digital economy gained a new catalyst for investment.
Why this trend matters for countries on the sidelines
The global economy is uneven. Not every country has access to natural resources, heavy industry or venture capital. iGaming offers a digital pathway to generate income, modernize financial infrastructure, and even promote employment in content development, cybersecurity, and digital marketing.
There are, of course, caveats. Overconfidence is dangerous. Unregulated growth can backfire. But if managed correctly, the impact is difficult to ignore.
Some countries that have adopted the iGaming model and are showing early signs of success include:
- Kenya: Thanks to M-Pesa integration and a strong mobile user base, its betting market is one of the most sophisticated in Africa.
- Armenia: An amazing hub for game development and iGaming server services, serving operators throughout Europe and the Middle East.
- Colombia: One of the leaders in regulation in Latin America, with taxes on digital games steadily increasing year on year since 2018.
Quiet effect, real numbers
iGaming will not replace manufacturing or become the next trillion-dollar sector in smaller economies. But its importance is real, especially in countries that want to finance healthcare, education or digital innovation without resorting to traditional taxation.
The most successful examples include a balance of clear regulations, localized partnerships and investment in digital infrastructure. As more countries wake up to this plan, the subtle influence of iGaming will continue to change not only the way people play, but the way entire economies develop.
