The history of online casinos

The online casino industry has grown exponentially since its early days in the 90s. In fact, it has more than doubled year on year and is currently estimated to be worth around US$46 BILLION.

That is phenomenal for an industry that is only in its early 30s.

Our Online Casino Review team wanted to know more about the industry we all love so we dug into the story behind online casinos.

Welcome to…

The OCR History of Online Casinos.

We all know the history of slots from its early 1800s. We all know that games of chance go back thousands of years. We even all know that card games were first played in China, the home of paper making.

But did you know that there is an incredible link between online casinos, online gaming

1960 – present

Darpanet is created, becomes the World Wide Web, web mail is created, Facebook and Google are launched and the platform that runs our beloved industry grows to become a tool to provide news, content, social media and, of course, entertainment.

1994

Antigua and Barbuda pass the Free Trade & Processing Act which allows licenses to be granted for the express purpose of online gambling.

1995

Microgaming, a company registered in the Isle of Man, launches the first online gambling games. These were limited to basic forms of blackjack, video poker, craps and roulette.

In the same year, Microgaming opens what could be considered the very first online casino: Gaming Club. While Gaming Club was a proof of concept, it was very quickly eclipsed by other online casinos. Microgaming, however, have gone on to become one of the biggest and most respected developers of online gaming technology, software and games in the world.

And they have a very interesting link to South Africa: even though they are registered and based on the Isle of Man in the Irish Sea, their owners and board are South Africans!

1995 also saw CryptoLogic, an online security software company, revolutionise the transfer of money over the internet and making secure and safe transacting a reality ­– a crucial step in making online gambling a reality.

1996

The Kahnawake Gaming Commission is formed in the Mohawk Territory of Kahnawake in Canada. Much like the Antigua and Barbuda Free Trade & Processing Act, it gives the Kahnawake the power to grant licenses to online casino operators.

Coincidentally (or not?) this was also the first time that proper online gambling sites appeared.

InterCasino, often seen as the first genuine online casino, accepts the very first real money wager online. This iconic online casino is still operating today and has paid out billions in winnings.

By the end of 1996 there were a total of 15 internet gambling sites available across the entire internet.

1997

The number of online gambling sites grows from 15 to 200.

1998

PlanetPoker opens the first online poker room.

By the end of 1998 the online gambling industry is worth over US$850 million.

1999

Multiplayer online gambling is introduced to the online gambling world. Players can now chat and interact with each other while playing online.

The US government attempts to shut down online gambling with the Internet Gambling Prohibition Act which does not get passed into law.

2000

The Australian government passes the Internet Gambling Moratorium Act making it illegal for any online casino licensed after May 2000 to operate. Interestingly, this meant that the only legal Australian online casino operator was Lassiter’s which is still operating today although they are not allowed to accept bets from Ozzie players.

2001

An estimated 8 million people worldwide are playing at online casinos.

The biggest ever (at the time) online progressive jackpot of over US$400 000 is won.

2002

The online casino industry is estimated to be worth over US$4 BILLION.

New games, new themes and new developers are flooding the market, all eager to tap into this phenomenal growth.

2003

The US bans advertising for online casinos.

Antigua challenges what they see as a violation of free trade agreements.

The eCommerce and Online Gaming Regulation Act (eCOGRA) is established giving the industry its first independent standardisation and regulation authority.

2004

The World Trade Organisation is in agreement with Antigua that the banning of American players is an unfair practice.

2006

The Unlawful Internet Gambling Enforcement Act (UIGEA) is passed in the United States prohibiting gambling businesses from accepting payments in connection with gambling. By targeting the money process, they effectively outlaw online casinos.

2007

The UK takes the opportunity to establish the UK Gambling Act and become a major hub for online casinos.

2008

Progressive slots jackpots pass the US$5 million mark.

2010

Online gambling continues to grow with popularity across Europe reaching record levels.

Agreements with payment providers are reached giving players more and safer payment options.

2011

Mobile technology begins to enter the online market and mobile gaming and casinos starts up.

NetEnt’s Mega Fortune progressive slot pays out a jackpot of over US$11 million.

2014

Payment methods are further boosted with the addition of Bitcoin as a payment option, and the first Bitcoin casinos begin operating.

2015

Microgaming’s Mega Moolah progressive jackpot pays out over US$17 million to one lucky player.

2018

Microgaming’s Mega Moolah progressive jackpot breaks another world record with a massive payout of over US$20 million.

Online casinos today

The industry is leaping ahead to keep up with technology innovations. Mobile casinos and gaming are as commonplace as Candy Crush. Live dealer games are all the rage, bringing the real land-based casino play into your own space. Virtual and Augmented Reality are beginning to bring new and exciting developments from games companies.

And the industry will soon be worth US$100 BILLION.