The origin of online casinos can be followed through three processes. The first is the heyday of game software. Since the mid-70s, gaming software began to become known in land casinos.
It is only then that the software replaces the traditional mechanisms of slot machines, which were also capable of displaying graphics and functionalities, as in a computer.
The first software for blackjack was developed by card game professionals in the 70s. The software for gambling was the first piece of a puzzle that already demanded at the time, to be perfected.
The only thing missing was a mechanism that allowed different computers to connect to each other via a server: the use of game applications could have been done through this server.
The emergence of the Internet solved this problem, especially when it became fully accessible in the 1990s. The Internet was previously used as a simple means of communication. Users were content to connect to a platform on the Internet from their jobs and to send messages to those who were currently connected. But it was not long before they realized that the Internet could contribute much more in terms of technology.
The third factor that played an important role in the evolution of online casinos was a legal mechanism and recognized by the authorities. That happened in 1994. The small state of Antigua and Barbuda signed an initial agreement, the Free Trade Agreement and the Process Zone law, which allowed it to grant official licenses. It was in this way that the first online gaming court was born.
In this same act the General Directorate of the game was founded. This body received the application requests, consulted them thoroughly and eventually distributed licenses to land casinos that respected the legal norms. The territories of Antigua and Barbuda remain today popular and respected jurisdictions. This law is a bit like the cornerstone of online casinos as we know them today.
Once all three processes were underway, they only needed to be combined. Microgaming was one of the pioneers from this point of view. Microgaming is a software provider, whose creation is based on the Isle of Man, and was founded in 1994.
It is the first to develop an online software. Although online games were already successful, there was a missing element whose importance remains vital: security. Cryptologic is the name of the company that initiated the design of a system that allowed the verification of financial transactions on the Internet. Cryptologic was founded in Ireland in 1995 and was the first company to develop an application for virtual transactions.
Since that day, the online gaming industry has not stopped growing. The estimated number of online casinos is 2300 and also includes virtual poker rooms and sports betting sites. The total income of all these casinos is 15 million dollars.