The History of Online Casino

History of Online Casinos
7 min read

Online casinos, also known as virtual casinos or internet casinos, are online versions of traditional brick-and-mortar casinos. They allow players to wager and play a variety of casino games over the internet. Over the years, the popularity and growth of the online casino scene have skyrocketed, making iGaming a major part of the gambling industry.

In the past, you would have connected to your online casino using a dial-up modem, but as technology advanced so did bandwidth and speed. Gradually iGaming became more sophisticated and user-friendly. Today, we use mobile technology, HTML5 tech via web browsers, and mobile apps. Graphics are also far superior and there are even slots, table games and game shows streamed via live webcams. It’s a totally different ball game, to say the least.

In this step-by-step guide, we are going to take you back through the ages and look at just how the industry has evolved by covering the most important points in online casino history!

The First Online Casino Gameplay

In the early days, online casinos were basic and offered limited game options. This was mainly because connecting to these games required connecting to the internet via a dial-up modem that operated at around 56 kilobits per second (Kbps). To put this into perspective, today we connect via super high-speed broadband via fibre or 4G and 5G networks with up to 1+ Gbps network speeds available.

Another fact that may surprise you is that these casinos were downloadable desktop apps only. Web browser desktop gaming didn’t come until much later, which you learn in more detail via the ‘Rise of mobile gaming from apps to web browsers’ section below.

The first online casino was established in 1996, and it was Microgaming was the pioneering force behind it. Initially, the casino offered basic games such as virtual online blackjack and roulette. What’s more, is that Microgaming ran both the casino and designed the games. Over time, Microgaming expanded its portfolio to include a wide range of games, including video slots, video poker, and more.

The Key Change to Service Delivery Since the First Online Casino

Once Microgaming kicked off the iGaming market, inevitably, new competitors began to enter the iGaming market and soon the market would split into operators and software providers.

  • B2B Software Providers: Today, software providers create games and offer B2B services supplying casinos with their games, but generally, they do not operate online casinos. You will know some of these brands as Evolution, Play’n GO, Pragmatic Play, Wazdan, BGaming, BetSoft, and Endorphina, which are all brands known for video slots and/or table games like online blackjack.
  • B2C Operators (the casinos): These are tech companies and entrepreneurs that offer the B2C side of the business which are the online casinos you sign up for and play.

The Introduction of Cryptocurrency & Blockchain Tech

The introduction of cryptocurrency and blockchain tech was significant not just to online casinos, but to the entire online community, especially eComm and online casinos. This makes crypto a key talking point in the history of online casinos because of the many benefits it offers players outlined in the bullet points below:

  1. Provably Fair Algorithms: This was a game changer. An alternative to RNGs, many casino players prefer the provably fair algorithms because it allows them to manually verify/check whether the results of their session were fair and random. Now you can play crypto online slots and table games like online blackjack using BTC, BCH, ETH, LTC, DOGE, XRP, USDT and other cryptos, and fully verify the results were random afterwards.
  2. Increased security: Transactions are secured through encryption and decentralized ledger technology, reducing the risk of fraud and hacking. This has made online casinos more secure for players, who can now make deposits and withdrawals with confidence.
  3. Anonymity: Allows for near-anonymous transactions, making it possible for players to remain relatively anonymous, barring KYC checks of course. The main point is that using crypto reduces the risk of identity theft and revealing bank details.
  4. Speed and efficiency: Cryptocurrency transactions are processed much faster than traditional fiat currency transactions, making it possible for players to receive their winnings much faster. 
  5. Decentralisation: The decentralised ledger means crypto is not controlled by any central authority or government and there are no intermediaries. This means low (almost unnoticeable) transaction fees.

Rise of mobile gaming from apps to web browsers

With the widespread adoption of smartphones and the increasing availability of high-speed internet, online casinos have become increasingly accessible to a wider audience. 

  • Mobile Apps: The rise of mobile gaming has been particularly significant in iGaming, with many online casinos now offering mobile-optimised versions of their games and platforms. This began with iOS, Windows, and Android apps as the desktop versions of casinos were not mobile-friendly due to the nature of HTML code at the time.
  • Adobe Flash Web Browser (Instant Play): Web browser eliminated the need for a desktop application by using Adobe Flash. However, to fast-forward a bit more, since 2021 this tech is already redundant. Now we have HTML5. This is mainly because it didn’t work well with mobile, and there were update issues.
  • HTML5 Web Browser Gaming: Today, the modern internet protocol is HTML5. It negates the need for a desktop or casino app thus killing two birds with one stone. Players can now use Chrome, Firefox, Safari, Edge, and other web browsers to load their online casino’s interface, manage their account and play games like online poker and video slots from their mobile or desktop.

Game Tech enhancements

As game delivery, apps, internet infrastructure, casino accessibility, and payment methods all improved, inevitably online casino games also advanced in much the same way as console and PC gaming have.

The two online casino niches that have improved the most over time are video slots and live casino games:

  • Video Slots: Video slots have evolved significantly since their inception, incorporating advanced graphics and animations, innovative bonus features, and more diverse themes. They now offer a more engaging and immersive gaming experience, with storylines and characters that players can connect with. Plus, there is the inclusion of cryptocurrency available for slots gameplay.
  • Live Casino: The most remarkable tech to hit online casinos is live casino games. They are popular due to the combination of the convenience of online gaming and the excitement of a real-life casino experience. Players can interact with human dealers and enjoy a more personalised and immersive gaming experience by zooming into the action via a webcam. The social aspect of playing with other players also adds to the popularity of live casino games.

You can learn more about live casino games via this useful online live casino games – all you need in one blog and discover just why the iGaming industry is so popular today!

The History of Online Casinos in Short

The evolution of online casinos has been rapid and impactful. In the early days, online casinos offered a limited selection of games, basic graphics, and limited payment options. 

Today, they offer a vast selection of games, cutting-edge graphics, and a wide range of payment options including cryptocurrency. Moreover, the use of mobile technology has made online casinos even more accessible and convenient for players, while live dealer games have added a new dimension to iGaming. 

And to make life even more pleasurable the adoption of fair gaming practices such as the provably fair algorithm has also improved the credibility and trustworthiness of online casinos, in particular crypto casinos.

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