A Complete History of Online Gambling

The internet has also had a massive influence on businesses and industries. Many industries have been created and job opportunities have arisen thanks to the web. From web development to marketing strategists, social media managers and digital designers, these jobs were non-existent and the internet has opened up a whole new world in terms of careers as well. Online casinos have certainly benefited from the internet, with hundreds of sites now available for players to access their favourite games worldwide. In fact, the iGaming business is a billion-dollar industry that continues to grow in leaps and bounds. 

Global Stats

For those interested in some stats, the global gaming market is set to reach a massive $256 billion by 2025. In 2020, $4.5 billion was spent by players on immersive games, while eSports enjoyed an audience of around 456 million people. Mobile gaming is also on the rise and may soon outperform online casinos as the leading method of gambling on the internet. With the convenience of online gambling, it’s difficult to remember a time when the only way to hit the slot machines or throw a dice was at a brick-and-mortar venue. But times have changed, and players can now access their favourite gaming products and services from anywhere in the world. As long as you have a secure and stable internet connection, you can play a wide range of casino games, and poker or place wagers on sporting events from the comfort of your home or while on the move. 

When it All Started

So, when did online gambling actually begin? While the exact date is not confirmed, many believe that the industry was born in 1994. This was the year that Antigua and Barbuda passed the Free Trade and Processing Act, granting licenses to companies that wanted to provide gambling services on the internet. Since then, the industry has grown considerably and is now one of the most lucrative in the world. This article looks at the history of online gambling and how it has evolved over the years. We also provide detailed histories of some of the biggest gambling sites and software companies in the business and the part they have played in developing the industry. Gambling has come a long way, from humble beginnings to a booming industry taking the world by storm. 

The History of Major Gambling Sites

There are thousands of online casino sites today. Some of these have been around since the early days of online gambling, while others are brand-new sites that just launched this year. Some are well-established and long-running sites while others recently joined the fold and have already developed strong reputations in the industry. Some sites have faltered while others have been banned or flagged as unreliable and unsafe. Regardless, the iGaming industry is buzzing with activity.

The history of online gambling is fascinating. Many sites have made a lasting impact on the industry and the stories behind these sites are interesting, to say the least. We go into a bit of detail about the history of these sites and software companies that have contributed to the industry’s growth. 

History of Online Gambling Technology Companies

Most gambling sites use third-party technology providers and gaming studios to produce casino games to feature on the site. These providers supply software to some of the biggest operators in the world, adding some exciting games to their libraries for an enhanced gaming experience. Most online casinos wouldn’t be able to operate without the help of these third-party software providers. 

These software providers have mastered the art of developing innovative and creative concepts that attract new players and impress seasoned gamers. Thanks to big names like Microgaming and NetEnt, smaller studios have also been able to climb up the ranks, providing players with a more varied gaming experience. These software providers have all been instrumental in developing the online gaming industry. 

History of Online Casinos

The first form of online gambling that really saw substantial growth was online casinos. This happened in 1994 when Microgaming was formed. This world-class software development company created excellent casino games for online casinos, allowing players to enjoy real-money play from the comfort of their homes. In addition, Microgaming claims to have created the first online casino, namely The Gaming Club, although other companies have joined the conversation, claiming to have beaten Microgaming to the punch. As such, this could never be verified. 

The First Online Casino

One of the earliest online casinos was InterCasino, owned by Cryptologic. Still in existence today, it has become one of the most notable gambling sites and played a key role in the development of online casinos. Thanks to the innovative work of Microgaming and Cryptologic, the iGaming industry was able to establish what kind of technology was needed to power casino games and what financial systems needed to be put in place to ensure safe and secure transactions online. That said, the online casino offerings in the 90s were a far cry from where we are today. The range of games was quite limited; the functionality wasn’t even close to what we enjoy today and the software left a lot to be desired. This new technology was impressive in its own right, mainly because it had never been used before. As more companies joined the fray, the number of online casino sites grew and advanced over time. 

Competition 

That said, the market started to become highly competitive and many software operators had to compete against each other in terms of quality, casino offerings and technology. Bonuses and promotions were soon added as a way to attract new players, while loyalty schemes rewarded players dedicated to the site. This was a tactic to retain customers and prevent them from moving on to other competitor sites. The overall standard of software was constantly improving, and exciting new features were added to games to enhance the playing experience. 

More Games

Progressive jackpots, video slots and multiplayer games soon became favourites at online casinos and helped them grow in popularity. However, despite the boom in online gambling, many players were still wary about the safety of online transactions and sharing financial information over the internet. They were also unsure about the fairness of casino games and whether the results are unbiased. Live casinos also rose in prominence at casinos, offering a whole new way to experience online gaming. Players could play in real-time, while live dealers and croupiers hosted the various casino tables. These days, live casinos are available at many top-rated online casinos. 

Mobile Gaming

More recently, mobile casinos saw a surge in popularity thanks to the rise in mobile devices and internet accessibility. As such, the iGaming industry quickly pivoted to introduce mobile casinos to a new generation of gamers. Many existing online casinos were optimised for mobile play, while games were given the mobile treatment as well. While mobile gaming is thriving in its own right, there is still work to be done to offer a completely immersive and convenient gaming experience. Playing from smartphones or tablets has become a popular way to enjoy casino games while on the move and the industry continues to grow as mobile devices become an intrinsic part of our daily lives. 

History of Online Sports Betting

Online sports betting is another branch of gambling on the internet that has attracted many loyal fans. The first sports betting site was launched in 1996 and others soon followed suit. Sports betting has always been a popular activity, but the availability of online sportsbooks made the whole process more exciting and convenient. A number of brand-new bookmakers were launched online while existing sportsbooks moved their offerings to the internet as well. Online sports betting is now big business and almost every sporting event and match is available to wager on at multiple online and mobile sites. 

In due time, sports betting became incredibly competitive online and betting sites had to think of new ways to attract customers. This includes adding generous bonuses and free bets to new players and promotions to entice existing customers. What’s more, sites introduced enhanced odds, cashback offers and different wagers in a bid to retain customers and attract new bettors.

In 2000, peer-to-peer betting became commonplace thanks to Betfair, which allowed customers to place bets between themselves. This new aspect of betting became instantly popular and remains a fan favourite to this day, although the name has been changed to exchange betting. While many other sites followed Betfair’s example, the brand continued to dominate the market. In 2002, live betting was introduced. This allowed bettors to place wagers while a sporting event was taking place. This added extra convenience to the betting experience as punters could change their bets or make a decision based on the current circumstances in the game. It was an instant success and, these days, a majority of sports betting sites now offer live betting. 

History of Online Poker

Planet Poker was launched in 1998 and became the first online poker site. The site attracted many players in a short time, even though internet connectivity was quite unreliable in the 90s. This meant that Planet Poker never fully got off the ground as many other operators soon joined the market and became more successful. That said, Planet Poker will always be the first online poker site to be launched on the internet and its rake levels are still considered industry standard today.

Paradise Poker was launched the following year and boasted more advanced technology and more games than Planet Poker, including Texas Hold ‘em, Seven Card Stud and Omaha. As a result, this site experienced fast growth. The next year, Poker Spot entered the market and was the first site to offer online tournaments. In 2001, two of the biggest online poker sites were launched, namely Party Poker and PokerStars. These two sites quickly became major players and remained two industry-leading sites to this day. In 2002, Party Poker started advertising televised poker on its platform, which resulted in it becoming the largest poker site. PokerStars saw success by launching its World Championship of Online Poker that same year. 

In 2004, Full Tilt Poker was launched and became another major player in the industry. While online poker became incredibly popular, there was still confusion over the legality of gambling online, especially in the United States. Cheating scandals that broke out at the time meant the process of regulated online poker sites sped up, starting in Nevada with Ultimate Poker. Since then, online poker has become a prominent fixture at online casinos and betting sites, with thousands of players around the world today.