The iGaming industry is expanding and with its ongoing growth, comes an ever-increasing environmental footprint. iGaming platforms rely on high-performance data centers, global server networks, and continuous operations. All of that requires vast amounts of energy and constitutes the carbon footprint of iGaming.
The International Energy Agency stated that in 2022, data centers worldwide consumed an estimated 240 to 340 terawatt-hours (TWh) of electricity, accounting for approximately 1% to 1.3% of global electricity demand.1 To put that into perspective: global data centres emissions are comparable to those of the airline industry, making them one of the most energy-intensive components of the digital economy.
Meanwhile, the global online gambling market continues to grow. Exact projections may vary, but the overall picture is clear: the market will continue to expand and according to Grand View Research is expected to surpass $153 billion by 2030.2
As regulations will inevitably tighten and eco-conscious investors and value-driven players alike prefer more responsible business practices, iGaming operators must take proactive steps to measure, manage, and reduce thecarbon footprint of iGaming operations.
What is the Carbon Footprint of iGaming?
The new breed of players aren’t just looking for the next best slot … they’re looking for brands that align with their values. Sustainability has become a deciding factor influencing where customers go. The carbon footprint of iGaming refers to its total greenhouse gas (GHG) emissions. The most power hungry main contributors include:
- End-user energy consumption
- Data centers
- Payment processing
- Live-streaming service
If you’re curious to find out more about your general sustainability ranking, take our free iESG Assessment.
#1. Data Centers and Server Infrastructure
Data centers are one of the most energy-hungry components and main industry contributors of the carbon footprint of iGaming. In 2022, data centers consumed 240-340 TWh of electricity, representing over 1% of global electricity demand.1 The increasing demand of high-quality streams of “blockbuster slots”, increasing number of real-time betting, sports live streaming and the rise of VR casinos are further increasing power consumption and subsequently the carbon footprint of iGaming platforms.
#2. Payment Processing & Blockchain Transactions
Every deposit, withdrawal, and transaction on any iGaming platforms requires processing power, encryption, and verification. Traditional banking methods consume a significant amount of energy whilst crypto-centered platforms require multiple times that energy. Proof-of-Work (PoW) blockchain networks, such as Bitcoin, require higher computational power to validate transactions, consuming up to 707 kWh per transaction 3. In comparison, more sustainable alternatives like Ethereum use Proof-of-Stake (PoS) blockchains, and can reduce energy consumption by over 99% and significantly reduce the impact of the carbon footprint of iGaming platforms.4
#3. Live Dealer Games and High-Resolution Streaming
Live-streamed casino games require significant bandwidth, pushing the energy demand on Content Delivery Networks (CDNs). Streaming a single hour of HD video can consume 2-5 kWh of electricity, with higher consumption for 4K streaming.5 With millions of players daily accessing iGaming platforms with live casino tables and high-quality streams requires a lot of energy and its demand is growing. One of the reasons why the topic of the carbon footprint of iGaming is becoming more relevant than ever.
#4. End-User Energy Consumption
iGaming also (more) indirectly contributes to emissions through end-user energy consumption. Players using mobile devices and desktops for gaming sessions consume electricity from their local power grids. While the energy consumption of a single session might seem irrelevant, when multiplied across millions of users worldwide, the cumulative effect is substantial and adds to the carbon footprint of iGaming.
How Operators Can Reduce The Carbon Footprint of iGaming Businesses
With increasing regulatory requirements and emerging value-driven customers, iGaming operators can turn a challenge into an opportunity. By incorporating sustainable business strategies sooner than later, operators can gain a competitive edge. How? There are several key approaches that can help reduce the impact of the carbon footprint of iGaming while lowering costs and shaping a positive brand perception.
Green Hosting and Energy-Efficient Data Centers
Switching to green hosting providers is a green tech strategy reducing the carbon footprint of iGaming businesses. Providers like GreenGeeks offer eco-friendly hosting solutions powered by renewable energy. By integrating renewable energy sources, data centers can significantly lower their environmental impact and cut operational costs over time.6
Improving server efficiency is another essential step. AI-driven load balancing ensures that energy is in fact only used when it’s really necessary, preventing needless waste. Liquid immersion cooling technology as used by Microsoft can additionally lower data center power consumption by up to 15%.7
Optimizing Payment Processing to Reduce Energy Waste
Payment processing systems contribute significantly to iGaming’s energy use, but operators can lower their footprint by prioritizing low-energy alternatives. E-wallets and instant bank transfers consume the friction of traditional card transactions. For blockchain-centered casinos, the transition from Proof-of-Work to Proof-of-Stake blockchains can slash transaction-related energy use by a staggering over 99%.4
Sustainable Streaming and Live Casino Optimization
Live casino games can be relatively easily optimized to reduce energy consumption without sacrificing a quality user experience. Lowering video resolution from 4K to 1080p reduces bandwidth and power usage while still maintaining high visual quality. Deploying Content Delivery Networks (CDNs) also optimizes data transfer, decreasing server loads, significantly lowering the carbon footprint of iGaming platforms.
Eco-Friendly Promotions and Incentives
Earth Day and World Oceans Day-themed promotions aren’t an oddity anymore. A portion of deposits is allocated to reforestation initiatives or marine conservation projects. These initiatives are a golden chance. They help operators reduce their environmental impact but more so enhance brand perception with a positive coverage, a ton of “free backlinks” and attract eco-conscious players and investors alike. A win-win and a practical step in lowering the carbon footprint of iGaming platforms.
Tools and Metrics to Track Carbon Reduction
To effectively measure and manage carbon reduction efforts, reliable tracking tools are essential.
- ISO 14001 Environmental Certification and LEED Certification for Data Centers validate sustainability efforts, offering competitive advantages.
- Google Cloud Carbon Footprint and Microsoft Sustainability Calculator allow an analysis of real-time energy use.8
- GHG Protocol Corporate Standard provides a global framework for measuring corporate emissions.9
Conclusion – Carbon Footprint in iGaming
The carbon footprint of iGaming continues to increase as the industry keeps growing. For operators it’s time to strategize and to take meaningful action. By transitioning to green hosting, optimizing live streaming, and tracking sustainability progress, iGaming platforms can not only reduce emissions, but cut operational costs, align with looming regulations, and reach a value-driven eco-conscious customer segment.
The shift to sustainable iGaming starts now. Contact us on info of how to reduce the carbon footprint in iGaming or to explore tailored ESG strategies for your platform.
FAQ: Carbon Footprint of iGaming
What is the biggest contributor of the carbon footprint of iGaming?
The largest contributors are data centers and high-performance servers, which account for over 1% of global electricity demand.
How can operators reduce their carbon footprint of iGaming platforms?
Operators can optimize server loads, switch to green hosting providers, and lower live-streaming resolutions to significantly reduce power usage and the carbon footprint of iGaming platforms.
Are there regulations requiring iGaming platforms to go green?
The EU’s Corporate Sustainability Reporting Directive (CSRD) mandates environmental impact reporting for large operators, with more jurisdictions introducing similar regulations. This includes the reduction of the carbon footprint of iGaming platforms – if they’re CSRD monitored.
Sources
1. IEA: “ Data Centres and Data Transmission Networks”
https://www.iea.org/energy-system/buildings/data-centres-and-data-transmission-networks
2. Grand View Research: “Online Gambling Market Size, Share & Trends Analysis Report”
https://www.grandviewresearch.com/industry-analysis/online-gambling-market
3. Ethereum: “Ethereum’s energy expenditure”
https://ethereum.org/en/energy-consumption
4. DigiEconomist: “Bitcoin Energy Consumption Index”
https://digiconomist.net/bitcoin-energy-consumption
5. Carbon Trust: “Carbon impact of video streaming.”
https://www.carbontrust.com/our-work-and-impact/guides-reports-and-tools/carbon-impact-of-video-streaming
6. Green Geeks
https://www.greengeeks.com/
7. Microsoft: “Datacenter Liquid Cooling”
https://news.microsoft.com/source/features/innovation/datacenter-liquid-cooling
8. Microsoft: “Emissions Impact Dashboard”
https://www.microsoft.com/en-us/sustainability/emissions-impact-dashboard
9. Greenhouse Gas Protocol
https://ghgprotocol.org/
