Since the year the first online casino was built, the online gambling industry has experienced a whirlwind of changes. It started from a humble, simple digital card game to the massive global platform we see today. Keep scrolling to learn all the important milestones and major developments throughout history.
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When Was The First Online Casino?
The first online casino appeared in 1994. This landmark year saw two critical developments in the gambling industry.
First, Antigua and Barbuda passed the Free Trade and Processing Act, a law that allowed companies to apply for licenses to operate online gambling. It was the necessary legal framework to launch an online casino.
In that same year (1994), a software company called Microgaming developed Gaming Club, the world’s first online casino platform. It offered simple versions of classic games like blackjack, roulette, and poker. Players around the world were given the opportunity to play these casino games on their computers for the first time without leaving their homes.
Although Microgaming’s software looked basic by today’s standards, it was still pioneering at the time and set the stage for a revolutionary new way to gamble.
In the next five years, the online casino industry was rapidly gaining popularity, thanks to the establishment of online gambling companies and platforms like Planet Poker (1998), Paradise Poker (1999), Kahnawake Gaming Commission (2000), and more.
A Look Back at The History of Online Gambling
Four years after Microgaming’s first online casino, Planet Poker made the headline as the first real-money poker platform. States like Nevada and New Jersey started legalizing online gambling, and the crypto casino industry also saw a steady rise.
1998: Planet Poker Pioneered Online Poker Platforms
Planet Poker, launched in 1998 by the Canadian engineer Randy Blmer, was the first online platform to offer a real-money poker game.
Planet Poker first appeared in 1998 (Source).
Before its establishment, Planet Poker advertised on Card Player, a poker magazine, to build public interest. On its first day and over the next three months, the platform hosted a $3-$6 Texas Hold’em game, which quickly gained popularity among gambling enthusiasts and led to more game spreads, such as Limit Hold’em, No-limit Hold’em, Omaha High, and 7-Stud.
However, by 1999, competition emerged with the launch of Paradise Poker, which offered smoother gameplay in comparison. When Planet Poker faced a severe technical issue and was forced to stay offline for more than a day, players decided to switch to another platform. Paradise Poker quickly overtook Planet Poker and became the new industry leader.
Despite its decline, Planet Poker still paved the way for the online gambling industry. Its legacy as the first online poker site remains a significant milestone in history. Check out other online poker sites here.
2003: Moneymaker Sparked Global Interest in Online Gambling
In 2003, television producer Steven Lipscomb created The World Poker Tour (WPT) to bring high-stakes poker tournaments to TV. It quickly became one of the most impactful online/streamed gambling events worldwide.
What made the WPT stand out was that the audience could see the cards that pokers kept hidden from each other. As a result, viewers were given a front-row seat to every dramatic strategy and decision made during the game.
Since the gambling matches were televised, the 2003 winner, Chris Moneymaker, became an overnight celebrity. He inspired everyday players to turn their small investment into a huge payout. The sudden interest in poker and online gambling after his victory was called the “Moneymaker” effect.
His victory has fueled a rapid expansion of online poker players. In 2019, 8,569 players were reported to join the live World Series of Poker tournament, according to CNN.
Chris Moneymaker became a global superstar (Source).
2006 to 2019: The UIGEA and Online Gambling Legalization
In 2006, the UIGEA (Unlawful Internet Gambling Enforcement Act) was enacted, becoming part of the Safe Port Act, a law originally created to improve security at U.S. ports.
The UIGEA was added to the Safe Port Act at the last minute, and it specifically targeted online gambling. Although it did not outright ban online gambling, the UIGEA made it illegal for a business to process payments for online bets or wagers (e.g., checks, credit cards, or bank transfers) if gambling was already illegal under state or federal law.
The law was controversial for two reasons. First, it was added to the Safe Port Act, which focused on national security, without much discussion or debate. Lawmakers did not even realize the gambling law was included when they voted on the bill. Second, the UIGEA was vague about what exactly counted as illegal gambling, leaving enforcement up to interpretation.
Nevertheless, this controversy did not stop the online gambling industry from developing. Over time, U.S. states began legalizing and regulating online gambling, such as Nevada, New Jersey, and Delaware (2013), Pennsylvania (2017), and West Virginia (2019).
2020: Crypto Casinos Arise
In the last 4 years, crypto casinos like BitStarz, Cloudbet, and mBit Casino have grown rapidly. Instead of standard fiat currencies (dollars, euros, etc.), players use Bitcoin, Ethereum, or Litecoin cryptocurrencies to place bets and participate in casino games, like poker, blackjack, slots, etc.
According to Play Today, about 50% of Bitcoin online transactions are related to gambling. A 2024 report by Casino Blockchain revealed that in 2023 alone, Bitcoin dominated 73.3% of crypto gambling transactions. This report also stated that a staggering $4.5 billion worth of Bitcoin has been wagered on Bitcoin casinos since 2014.
Privacy is the main reason for this rising trend: bitcoin casinos let users gamble without providing personal or baking information. Plus, these platforms, such as Bitcasino, BCgame, CryptoLeo, etc., operate globally since they do not rely on any traditional financial system, which makes them accessible even in countries with strict gambling regulations (India, China, Turkey, etc.)
The crypto casino industry saw a steady rise (Source).
FAQs
When did online gambling become legal?
Online gambling became legal in the U.S. in 2013 when Nevada, Delaware, and New Jersey passed legislation to regulate it. They offer their residents access to every state-regulated online casino and poker platform — a significant milestone in the industry.
What is the number one casino online?
BetMGM, Caesars, DraftKings, and BetRivers are top-rated online casinos. Each stands out for its excellent user experience, massive game library, great promotional offers (reward points, bonuses, giveaways), and high-quality graphics. Check out our guide on the best online casino.
Has anyone ever won on online gambling?
Yes, significant wins have frequently happened in online gambling. For example, in August 2024, a BetMGM player won over $6.4 million on a progressive jackpot with just a $200 bet [Daily Herald].
Do any online casinos actually pay out?
Yes. Licensed online casinos such as DraftKings, Caesars, and BetMGM ensure a reliable payout for anyone who wins, provided the player meets the terms and conditions (validity period, wagering requirements, etc.).
What is the easiest online casino to win?
Baccarat is the easiest online game to win, thanks to its low house edge. Experienced and even beginner players find the game straightforward, as the rule favors them better than other casino games like slots or roulette.
What is the fairest game in the casino?
Blackjack is widely regarded as the fairest casino game since players can influence the outcomes through a well-planned strategy. Skilled players find it easy to improve their odds significantly, unlike games of pure chance like slot machines or keno.
References
- The first Online Casino (Netprolive.com)
- The First Online Casino: Created by Microgaming (Casino.com)
- Exploring the Roots: The Gripping History of Online Gambling (Playtoday.co)
- Planet Poker’s Official website (archived) (Planetpoker.com)
- World Poker Tour (Worldpokertour.com)
- The rise of crypto casinos – A new era in online gambling (Next.io)