History and Evolution of Online Casinos
The story of online casinos began in 1994 with the passing of the Free Trade and Processing Act, which opened the door for online casino operators to set up shops in digital spaces. Over the last thirty years, the accessibility and convenience of online casino gameplay have improved—gamblers are enjoying a much different experience than their ancestors in the early 1990s.
How did we get to this point where we can play fair, secure casino games from the convenience of our smartphones or tablets? How did live dealer games develop and take hold with the gambling public? And what makes it possible to play table games or slots from your phone without a dealer or without being able to physically touch the casino equipment?
We’ll answer these questions and many more as we discuss the history and evolution of online casinos!
- The Early Beginnings
- Key Milestones in Online Casino History
- Technological Advancements
- Current State of Online Casinos
The Early Beginnings
The inception of online casinos in the 1990s came about as a result of the Free Trade and Processing Act, which passed in 1994 in Antigua and Barbuda. This legislation paved the way for the licensing of online casinos where players could win real money. You cannot discuss the early beginnings of online casinos without talking about Gaming Club Casino, the world’s first real-money casino website!
First Online Casino
The birth of the online gambling industry began in 1994 when Microgaming launched Gaming Club Casino, a gambling platform that offered blackjack, roulette, and slot machines. Microgaming got the ball rolling, and within the year, several other operators emerged looking to get a slice of the pie.
First Casino Features
- Fully licensed by the Maltese government
- Had 18 games, including slots, blackjack, roulette, video poker, and baccarat
- Carried several payment methods, including credit cards, e-wallets, and bank transfers
- Simple, minimalistic design
- Games came with simple 2D images
Gaming Club Casino laid much of the initial groundwork for how future platforms would design their sites and which features they would extend to their customers. However, they had quite a bit of competition in the form of Intercasino and 888 Casino. During this early period, each platform was vying for the label of the original pioneer of online casino games. Gaming Club Casino ended up being the one that most people agree was the OG casino site.
Fast-forward to 1997, and the fifteen casino operators from 1994-95 had jumped to 200, and the annual revenue from all platforms combined was estimated at $1 billion! Since then, the online gambling industry has grown by leaps and bounds—it all began with Gaming Club Casino and its simple, yet effective platform that introduced the world to real money online casino games.
Pioneering Software Providers
Microgaming was the software provider that built and launched Gaming Club Casino in 1994. At that time, it was only available in South Africa under the name casino.co.za. A few years later, in 1996, competitor CryptoLogic launched Intercasino. It was powered using their patented software and even offered online payments in 1996 and on, while Gaming Club Casino was doing manual transactions for customers until 1997.
Although Intercasino was technically the first fully functioning online casino (all thanks to CryptoLogic), Microgaming and Gaming Club Casino were the pioneers.
Things got taken to the next level in 1998 when Microgaming introduced the internet’s first progressive jackpot, Cash Splash. This move was significant because it greatly expanded the potential prize for an online jackpot slot. If several online casinos hosted the same jackpot slot, the prizes could be more important than ever, and there would be a lot of hype surrounding these games, thus drawing in more customers and attention from the public. Because of this move, three jackpot networks are now operating, including Mega Moolah, WowPot, and Major Millions.
Key Milestones in Online Casino History
The history and evolution of online casinos as we know them today didn’t take place overnight or even in the course of a few years. It was a long process. The technology needed to be available for online casinos to be used on mobile devices. There’s also the matter of legalizing online casino gameplay in the United States, though non-US-regulated platforms have always been an option.
Let’s take a moment to highlight the significant events and breakthroughs that led to the launch of mobile casinos, the development of live dealer games, and the regulatory groundwork needed to get these platforms up and running.
Launch of Mobile Casinos
The transition from desktop to mobile casinos didn’t take hold until the mid-2000s when the first smartphones came out, providing an avenue for online casinos to offer their services to customers on the go.
| Year | Details |
|---|---|
2005 | Juniper Research forecasts that mobile gambling services worldwide would generate over $19 billion in revenue by 2009. |
2006 | An unexpected prohibition on all internet-based gambling occurs in the United States. |
2007 | Apple Computer introduces the iPhone, a significant game changer in the growth of online casinos. |
2010 | Analysts at Gartner had mobile gambling revenue at $4.7 billion for 2009 and estimated $5.6 billion for 2010. |
2011 | Apple allows real-money gambling apps in their Apple Store for the first time. |
From the beginning of the first online casinos, offshore casinos have been popular with American gamblers because these platforms can legally take US customers, even if they are based overseas. However, they do not have to ensure protection for US gamblers and their private data, making these mobile apps and websites risky. The regulated US casino gaming market is still taking shape today, but we’ll discuss this later as we talk about legal and regulatory development surrounding casino apps and websites.
Introduction of Live Dealer Games
The first iteration of live dealer games began in the late 1990s, but they were largely unsuccessful due to technological limitations. The quality wasn’t there because of slower internet speeds that couldn’t meet the traffic demands. It looked like live dealer games were dead in the water for a while.
Jumping to 2006 and 2007, live dealer games were tried again once internet speeds and bandwidth had improved. They still failed to take hold with the public because of the popularity of slots and table games at the time. Again, live dealer games were shelved until the experience could be better perfected.
As online casinos gained traction in the early 2010s due to the increased use of the iPhone and other smart devices, live dealer games began having more of a place within online casinos because the technology was at a point where these games could be successfully supported. A few things that helped to entice new players were the live dealer tables’ willingness to offer higher betting limits and a more comprehensive range of games, including poker, blackjack, craps, roulette, and baccarat.
Major Legal and Regulatory Developments
In the United States, only a handful of states have regulated online casinos (iGaming) within their borders. There are only seven as of 2024—Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. These states began making legal moves and introducing laws and regulations from 2018 onward to usher in iGaming, so residents or visitors in these states can enjoy real money casino games on their computers or mobile devices.
If you aren’t in one of the seven states with iGaming, you haven’t any access to US-regulated online casinos, but you can still use offshore casino apps. This isn’t ideal because these platforms aren’t held to US law and have no obligation to protect your private data. Even though you’re taking a risk, it’s your only option for playing casino games online if you live anywhere else in the United States.
| Law | Details |
|---|---|
PASPA Law (1992-2018) | The big thing that changed in 2018 was that the Supreme Court ruled the PASPA law unconstitutional. PASPA stands for the Professional and Amateur Sports Protection Act. It was a law introduced in 1992 that prohibited betting on sports in person and online. When the Supreme Court struck this law down in 2018, the states moved quickly to enact their own gambling laws for sports betting and online casino gameplay. |
Unlawful Internet Gambling Enforcement Act (2006) | This law makes it illegal for businesses to process payments that are unlawful where the gambler or the website is located. It authorizes federal and state authorities to impose penalties on violations, which can include asset forfeiture, fines, or imprisonment. |
The Federal Wire Act of 1961 | This older law prohibits using wire communications facilities to transmit bets and other important information. State governments remain in control of iGaming and online gambling operations. Each state makes its own rules and regulations on games allowed, geolocation restrictions, payment processing systems, and operation licensing requirements. |
Technological Advancements
Technological advancements over the last thirty years have been the strongest driver of progress with online casinos. The experience improves overall usability, convenience, and visuals in any given year. Technology has been the major transformer of online casinos, from the clunky, low-energy offerings of the late 90s to the robust, eye-appealing powerhouses that they are in 2025.
Evolution of Casino Software
Casino software has improved since the 1990s to offer gamblers sophisticated casino gameplay. In 2024, several key technologies have significantly shaped the online gambling experience:
- Wide Range of Payment Methods: Gamblers can deposit and withdraw funds using credit cards (Visa, Mastercard, Amex, etc.), the Play+ Card (prepaid credit), bank or wire transfers, e-wallets (Neteller, Skrill, PayPal, etc.), and Apple Pay.
- Blockchain Integration: Some online casinos offer users the chance to bank with cryptos, and all transactions/records are maintained on the decentralized blockchain network. This tech can help players better track their payouts, wins, and losses.
- Accessibility with Smartphones: Mobile casino games have been possible for many years through devices like smartphones and tablets. Along with improved internet connections and bandwidth, online casino game sessions, including live dealer tables, have never been easier or clearer.
- RNGs and RTPs: Over time, random number generators for online games have improved, offering close to real-world chance on all game results. Return-to-player rates have a built-in house edge, but all regulated online casinos give players a certain percentage of money back.
- Two-Factor Authentication and Encryption: Online casinos have never been more secure. They offer a private connection that keeps all gamblers’ private data confidential and safe. Two-factor authentication adds an extra layer of protection for players logging into and out of their accounts.
- Improved Graphics: Undoubtedly, the graphics and story elements of online casino games are at their best in 2024. In particular, 3D slots are games that provide a unique experience marked by theatrical graphics following winning combinations.
Impact of the Internet and Broadband
Improved internet speeds and broadband accessibility have boosted online casinos’ popularity over the years. In the 1990s, these elements were not where they are today. Internet speeds were sluggish at best, and the dreaded dial-up experience made everything much more cumbersome and complicated.
Better speeds have led to fewer errors and glitches in the day-to-day functioning of these online casinos.
There isn’t much of a lagging factor unless you’re using a platform experiencing increased weekend volume. Enhanced speed and the lack of lagging have made a world of difference for live dealer games, especially those that struggled greatly during the ’90s and early 2000s when the technology wasn’t quite there yet.
Cryptocurrency and Blockchain Integration
Some regulated casino apps offer cryptocurrencies as an option for depositing funds into your account or collecting your winnings. Cryptos operates on a decentralized blockchain. This provides a great layer of protection for players and can help them better track their payouts and win-to-loss ratio.
Benefits of Crypto at Online Casinos
- Anonymity: Players can engage without providing too much personal information. This is a great feature for those who are serious about their privacy.
- Decentralized: Crypto isn’t controlled or managed by a central authority or government. Players have much more freedom in managing their crypto funds.
- Lower Fees: Besides more flexible limits, crypto transactions typically have lower fees–deposit funds and withdraw winnings without too much overhead.
- Instant Payments: Crypto payouts are much faster than other options, such as credit or debit cards, e-wallets, or the Play+ Card.
- Provably Fair Gaming: Cryptos allow gamblers to independently verify the fairness of each game outcome.
- Global Accessibility: Cryptos paired with crypto casinos let players enjoy access from anywhere on the globe. They can play from anywhere, regardless of where they are from.
- Lower Deposit Limits: Crypto transactions offer lower-than-usual deposit limits, which is a good option for someone with a more conservative approach to gambling.
Current State of Online Casinos
What does the modern online casino landscape look like in 2025? We’ll analyze the current state of market size and future growth trends. There’s something to be said about the game libraries and what kind of gamblers are using these platforms, which we’ll also discuss in this section.
Global Market Size and Trends
The online casino market continues to grow yearly, and the future predictions are looking bright for the industry. With how easy and affordable it is to access these games on your smartphone and make your first deposit, the business is set up for excellent growth potential! Let’s review the current market size, some projected growth trends, and future predictions on where the online casino industry will be in 2030.
The global online gambling market size in 2023 was $85.62 billion USD, and the forecast for 2030 is around $153.57 billion USD. This information comes from historical data from 2018-2021, using 2022 as the base year for estimation. The compound annual growth rate used for the period of 2023 to 2030 is 11.7%.
Countries focused on in this study include:
- United States
- Canada
- Japan
- United Kingdom
- Germany
- France
- Italy
- China
- India
- Spain
- Brazil
- Turkey
- Mexico
- South Africa
Popular Games and Innovations
The most popular games, undoubtedly, are the slot machines, which comprise the bulk of any game library. Gamblers tend to like table games because using a basic strategy can drive the house edge down and significantly increase your chances of beating the house. Let’s look at what these online casinos offer regarding games in 2025.
Top Slots
- Sweet Bonanza: 96.8% RTP
- Buffalo Gold: 96% RTP
- Gate of Olympus: 96.5% RTP
- Better Wilds: 96.42% RTP
- Lucky 7: 97% RTP
- Cleopatra: 95.02% RTP
Top Table Games
- Video Poker
- Blackjack
- Baccarat
- Craps
- Texas Hold ’em
- European Roulette
- Pai Gow Poker
User Demographics and Behavior
Online casinos have a diverse cast of players who make up their ranks. With a lot of different people, you get a lot of other behaviors and gameplay styles. Check out the most common kinds of gamblers that you find on these platforms.
- Serious Gamblers: These players take full advantage of bonuses and promotions and have a clear strategy for winning and making money. They tend to play games with a low house edge, like table games, or games with a high RTP rate, like slots with 95% or higher.
- Casual Gamblers: These are gamblers who mostly play for leisure or simple fun. They may or may not use a strategy while playing table games and can most often be found playing slot machines. They might not check the RTP rate. These players tend to hold their own or lose money. The lucky ones eventually develop a rough strategy at some point.
- Problem Gamblers: These are people who are playing at online casinos because they have a gambling problem or addiction. They actually comprise a small percentage of the user base, but they can be some of the most profitable players for online casinos. Some might have skill in playing and will win occasionally, but these people often play because they cannot help themselves. They usually blow through a lot of money due to their compulsive gambling habits.
- Improved Graphics: Undoubtedly, the graphics and story elements of online casino games are at their best in 2024. In particular, 3D slots are games that provide a unique experience marked by theatrical graphics following winning combinations.
Online Casinos and Games Have Come a Long Way
It cannot be stated enough how different the online casino game experience is nowadays compared to the early days when Gaming Club Casino was first introduced to consumers. Advancements in mobile devices, internet speeds, and gaming/software technology have all contributed to the dynamic online casino apps we are graced with in 2025.
The online gambling industry is expected to grow over the next five or more years—the user-friendliness of our favorite online casinos is expected to be the big driver of this growth. As more states look to expand their iGaming footprint, we can expect to see strong growth in the United States, another factor that will increase the value of the overall global market.
Explore other sections of the Online Casino Guide for more information and insights on the global gambling market’s movement and new developments entering the industry.