How Do Live Dealer Online Casinos Work? All You Need to Know

With the ever-increasing variety of online gaming options, one trend stands out – live dealer casino games.

The concept is nearly thirty years old, as early internet pioneers first strived to offer gamblers real-time online gaming as far back as the late 1990s. Yet, the technology was glitchy, and connection speeds were certainly not what they are today.

Meanwhile, modern-day advancements such as game control units (GCU) and optical character recognition (OCR) have accelerated live dealer casino experiences.

With live casino user numbers surging, Techopedia explores the technological advances facilitating the live digital casino boom and why it’s become the go-to iGaming format for 2025.

Table of Contents Table of Contents

1. Key Takeaways
2. Live Online Casinos Are on the Rise
3. Technology Behind Live Dealer Casinos
4. Live Casinos vs. Traditional Online Gaming
5. Ensuring Fairness, Security & Player Protection
6. The Future of Live Dealer Casinos
7. The Bottom Line
8. FAQs
9. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. Live Online Casinos Are on the Rise
3. Technology Behind Live Dealer Casinos
Show Full Guide
4. Live Casinos vs. Traditional Online Gaming
5. Ensuring Fairness, Security & Player Protection
6. The Future of Live Dealer Casinos
7. The Bottom Line
8. FAQs
9. References

Live Online Casinos Are on the Rise

Given that nearly half of Americans (49%) visited a casino in 2024, the inevitability of the demand spilling out onto the internet has sparked several iGaming success stories, including BetOnline’s live dealer-enabled platform.

Offering tailor-made games, including Blackjack, Roulette, and Texas Hold’em Poker, gameshow-style blockbusters like Wheel of Fortune, and live-draw lotteries, it’s all the fun of the casino… but in the palm of your hand.

Whereas in the past, online casino fans grew accustomed to casino games that relied on random number generator (RNG) system arrangements, live dealer casino games offer authentic gameplay capabilities previously only available at brick-and-mortar casinos.

Technology Behind Live Dealer Casinos

Any online live dealer casino operation combines high-quality video streaming, artificial intelligence, and optical character recognition.

These technologies are instrumental in ensuring that every casino spin, shuffle, and bet is accurately captured and transmitted to the players in real time, with the help of game control units.

The GCU element is a key component within any top-notch live casino setup. It encodes the entire video feed before transmitting the data of each action’s outcome, such as the cards being dealt or a winning roulette ball number being drawn.

Meanwhile, the optical character recognition software is equally important as it converts the physical live dealers’ actions into processable digital data. OCR provides instant and responsive gameplay and eliminates the delays previously associated with live casino dealers, steering away from the old pre-programmed algorithms.

In a bid to add to the atmosphere of the live casino experience, platforms also include multiple camera angles to enhance the user’s involvement in every draw, spin, or roll of the dice. These also include close-up shots of the dealer and even slow-motion replays.

Additionally, live dealer online casinos use optimized lighting and soundproofed studios to replicate a luxury in-person casino setting and augment the feeling of being immersed in the process.

When you combine this with charismatic dealers training in both gameplay and showmanship, live casino games provide the same edge as if you were sitting in a high-end Las Vegas venue – except without the drink servers.

Finally, AI and big data’s incorporation into the mix adds behind-the-scenes elements such as improved streaming optimization and interactive social chat functions similar to the engagement of sitting around a conventional casino table.

More visible enhancements also include the augmentation of real-time betting recommendations and odds percentages, which are unavailable in real-life casino settings.

Live Casinos vs. Traditional Online Gaming

As the early pioneers of the online live dealer setup found, technological limitations in the early days of the internet often saw users reverting to digital computer-generated alternatives that relied heavily on RNGs.

Despite RNGs providing a suitable alternative to traditional land-based casinos, live dealers tend to bring vibrancy to the live online casino table. When compared, mechanical automated platforms seem wholly uninspiring.

A great example of this is Evolution Gaming’s immersion into the New Jersey iGaming market after partnering up with Bet365, where players can chat with dealers and fellow gamblers.

Evolution is excited to announce the launch of our live dealer games on @bet365_us casino platform in New Jersey! Read more here: https://t.co/80lQGD7i8r

21+ | If you or someone you know has a gambling problem, please call 1-800-GAMBLER#livedelaer #igaming #casinonews pic.twitter.com/5EBEOh7FzO

— Evolution (@Evo_global) February 13, 2025

Mimicking a real-world casino’s social interactions across the table, iGamers can now enjoy the camaraderie and the banter associated with live dealer experiences.

Likewise, while all the top card games available in a resort casino can be found online, the scope to expand into franchise live dealer games such as Dream Catcher, Monopoly, and Wheel of Fortune 24 hours a day, 7 days a week, means fans can win big, without needing to leave the house.

Ensuring Fairness, Security & Player Protection

One of the most appealing factors of online live dealer games is the perceived element of fairness, which is often missing in sterile RNG gaming scenarios.

After all, players prefer to watch real-life dealers using real cards, roulette wheels, and dice, which undoubtedly provides a tangible layer of transparency rather than relying on hidden algorithmic mechanisms that decide their fate.

Furthermore, there are designated organizations in place to help regulate games, where regulatory bodies such as the UK Gambling Commission and the Malta Gaming Authority ultimately oversee the authenticity of live dealer games to help protect players.

Anti-cheating measures, including multi-level authentication, behavioral analysis, and AI-driven fraud detection, add a layer of security and enable online casino operators to prevent game manipulations by players and dealers.

In addition, advanced encryption technology, such as secure sockets layers (SSL) and transport layer security (TLS), ensures that all players’ financial and personal data is safe when playing online live dealer games.

Finally, to promote responsible gambling, online casino platforms also offer self-exclusion options and deposit limits to counter iGamings innate 24/7 accessibility.

As with brick-and-mortar casinos, gamblers can occasionally get caught up in the excitement and lose track of time… and fiscal restraint. These initiatives allow players to control their own gaming habits, helping to reduce the risks of addiction and financial loss.

The Future of Live Dealer Casinos

In stark contrast to land-based casino revenues, which crept up to $50.32 billion in 2024, a mere 0.6% increase year-on-year (YOY), iGaming demonstrated an incredible 28.7% increase, hitting $8.4 billion, according to the American Gaming Association (AGA).

The growth of the live dealer casino sector is helping to propel iGaming’s efforts to rival the revenue of physical casino resorts. As more states open their doors to legalized gambling, this income stream will continue to soar.

Then, when you consider the innovative integration of virtual reality (VR) and augmented reality (AR) technologies, the variety of built-in gaming perks of live casinos will soon allow players to step into a fully interactive casino environment from the comfort of their homes.

With experts predicting that live dealer casinos may eventually rival, if not surpass traditional, land-based casino revenues and player numbers, the explosion of betting platforms adopting and expanding their live dealer games portfolios seems inevitable.

There are also casinos all over the Country now and app sports betting. There is no need to fly all the way to Vegas to gamble. The allure has diminished.

— Matt Tito (@MattTito_) March 2, 2025

Integrating blockchain technologies and cryptocurrency casinos will ensure live dealer casino games gain further adoption.

The Bottom Line

Live dealer casinos might offer a far more advanced and authentic casino adventure, accessible anywhere and everywhere, at all times of the day.

Nevertheless, for the industry to truly succeed, it must constantly strengthen its security protocols and responsible gambling resources, which will no doubt be keenly monitored by the regulatory agencies.

However, if these standards are maintained, live dealer casino games can dominate the global iGaming market in the future.

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