This article presents a comprehensive literature review of latency compensation techniques for online gaming with a focus on IoT. The article begins by explaining the importance of IoT in the online gaming industry and how latency can affect service quality in terms of local and network latency. Then, different latency compensation techniques based on feedback, prediction time manipulation, and world adjustment are discussed. In addition, latency compensation methods based on IoT, such as edge computing and fog computing, are described, and their potential to improve the quality of online gaming services is analyzed. This article provides a complete overview of online gaming latency compensation techniques and highlights IoT's importance.