VR and AR are Poised to Drive Growth in iGaming, Experts Say – What Will That Future Look Like, Though?

The last two years have pushed immersive technology from niche experiments toward product pilots. Investors and operators are funding prototypes, hardware costs are falling, and several studios and operator partners are building live experiences. The virtual reality gaming market was forecast to increase by $39.94 billion between 2024 and 2029. The shifts so far haven’t led to mass adoption yet, but there’s a path for developers to upgrade their products.

How VR is changing gameplay

VR changes the relationship between player and game. The most obvious use for VR may be video poker. Beyond that, casinos that offer roulette and table games like blackjack can recreate table etiquette and the casino atmosphere with VR headsets. A slot remains a slot, but VR – while not mainstream yet – will allow a player to approach a machine, watch others play, and experience depth and sound. Social casino lobbies will let people across the world gather at a table for a session.

Where AR fits on players phones and in venues

4.3 billion people in the world own a smartphone, naturally making smartphone usage an area of high priority for iGaming companies. Augmented reality is less about full immersion and more about overlaying game information on the real world. For sports betting AR can place live odds and stat cards over a broadcast or onto a stadium seat view. Operators will likely also use it to guide customers toward promotions and highlight certain events based on their data.

Business models and how operators will charge

Three main commercial models could dominate. Pay per session models could sell premium VR rooms as a microtransaction. Subscription bundles could include VR lobbies and exclusive tournaments. White label partnerships will let game studios supply environments to operators on revenue share.

Operators with already large existing player bases can test small deployments and scale what works. Studios will also likely monetize avatar items and room cosmetics. The short term revenue impact will likely be modest while operators find their feet and gather data.

Player safety and regulation

Regulators treat immersive formats like other online gambling products, but new elements raise some concerns. A headset could reduce real world cues about time and money spent. Avatars and spatial audio add social leverage and new messaging risks.

Regulators in various markets will be asking operators to demonstrate proper responsible gaming tools inside VR spaces. Operators must build strong infrastructure and they must also show clear player protections; these two requirements could determine whether a pilot moves to scale.

Market momentum and commercial incentives

There are three main commercial reasons for operators to try VR and AR. First, immersive formats promise longer session times because environments feel less like flat screens and more like real (and often social) spaces. Second, operators can create new premium tiers and content bundles that charge more per user. Third, regulators and investors will be watching progress as a way to expand taxed activity into new markets.

Product priorities for the next two years

Game by game priorities are emerging. Table games and poker see the most developer attention because they translate directly into social VR rooms. Slots in VR are technically possible but require rethinking pacing and animations. Developers are likely to test mixed reality tournaments where some players join by headset and others by phone. There are likely to be many iterative rollouts rather than a single big launch.

Technical constraints and user experience

Standalone headsets now cost less than a high end gaming console, but they’re not ubiquitous. Latency, cross platform matchmaking, and wallet integration may be some of the main engineering problems.

For operators the technical tradeoff is pretty clear: optimize for a smaller but more engaged audience or wait for broader hardware penetration. Early multiplatform approaches could let players join from phones and desktops while headset users gain access to more features.

Commercial experiments and early signals

Several operator groups and suppliers published pilot outcomes in 2025. A report from Nextgen Innovations detailed how a 300% retention lift was achieved in VR casinos in a private pilot. The company emphasized the importance of keeping the setup quick and easy and the appeal of free spins.

That said, conversion of casual players into paying VR customers remains small. More physical venues may start experimenting with VR attractions as foot traffic drivers. Practical, measurable gains are starting to appear, but for now, immersive formats are mostly experiments rather than immediate profit drivers.

Last note on design and choice

Design will matter if VR and AR are to really succeed. Immersive rooms must respect player attention, make controls obvious, and provide simple exits back to the real world. Particularly after some of the novelty effects wear off, players may reward clarity and fairness as much as the spectacle. Developers and operators who focus on reliable play, transparent rules, and responsible gambling tools will likely be most successful.

By GamesAndCasino