The History Of Online Casinos

January 31, 2013 |

Looking back at decades of online gambling

Online casinos are now very popular and easy to use but things weren’t always this convenient. The history of online gambling can take us back almost a couple of decades when the nation of Antigua and Barbuda first issued the online licenses as the new Free Trade & Processing act passed. This marked the start for what will later become a huge industry and it opened the doors for organizations to offer online casino games.

All this took place in 1994 but the now popular software developer Microgaming already had a gambling product available developed with the help of CryptoLogic that made sure every piece of information is secure and that users are guaranteed flawless online security. With the security at online casinos being top notch, it didn’t take long for the industry to start growing.The History Of Online Casinos

1996 was the year when things really started to catch on and there were many improvements made to the world of online gambling in order to make it much more comfortable for the players. This is the year when Gaming Club and Intercasino first launched and although the first one didn’t survive for long, the second managed to build a good reputation around its services and it quickly became the best place to play casino games in a reliable and secure environment. The company behind Intercasino also launched the first online sportsbook that wasn’t received warmly by all users.

Cryptologic introduces the eCash payment system

While Microgaming had sold the casinos they had and began focusing more on developing gambling technologies, Cryptologic continued to improve the online security and introduced the eCash payment system. This would mark the beginning of a new era in online payments which would make transactions much easier while maintaining everything secure.

The industry continued to grow in the next couple of years and more online casinos and online sportsbooks became available while coming up with new software programs and better payment options. In 1998, the first progressive jackpot was introduced by Microgaming which left everybody speechless. It was called Cash Splash and offered players the chance to win large jackpots that kept getting bigger with every bet. Towards the end of the same year, reports made their way to the surface showing that online gambling generated revenues of around $834 million which showed the potential of the industry over the next few years.

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The first signs of online gambling prohibition were seen in 1998 when Senator Jon Kyl presented the Internet Gambling Prohibition Act that would stop all companies from offering online gambling games to the citizens of the United States. The bill was rejected and another version was presented in 1999; this also failed.

Price WaterhouseCoopers and Microgaming began reviewing online casinos in 1999 and checking out their payout percentages. This was another big step for the industry and by the end of the year, it was reported that almost 700 casinos were available on the internet and using real currency.

Online gambling in the 2000s

The year 2000 saw even more progressive jackpots and Isle of Man became one of the top locations to get an online gambling license from. More regulations took place around the world, most notably in Australia. The number of people who took part in online gambling by 2001 was around 8 million and this number continued to grow despite the changes in legislation.

By 2005, Microgaming had solidified its position as the top software provider in the business and was now having over 5,000 users enjoying the collection of 250 games. The next year, things started going bad in the United States as the Senate presented the Unlawful Internet Gambling Enforcement Act 2006 as a response to the incident on 9/11 in order to prevent some organizations to laundry money through online gambling. This stopped financial institutions from transferring money from online casinos to players and many sites were forced to shut down.

The industry took a big hit with almost 2,300 online casinos closing due to the decrease in traffic. In 2008, Microgaming left the US market. 2009 is the year when the Win Palace Casino history began.

In 2011, the US Department Of Justice accused three of the largest online poker companies for unlawful operations and enforced the online gambling regulations despite the companies arguing that poker is a game of skill. One of the three companies, PokerStars, had an amazing 2012 outside of the United States and become the largest online poker room in the world. The same year, a bill to legalize online poker in the States was presented but didn’t manage to go through.

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