History of Online Gambling
|Gambling online is
relatively new but in the internet world it started just as soon as the speed
of connection was sufficient to support real-time transactions. It was an
obvious fit, virtual recreation of casino games in your home with high level
security. It was immediate, accessible and safe.
This was the watershed year. Antigua and
Barbuda, an aspiring small nation, had the forethought to adopt a legal
framework so that they could license online operators and therefore generate
revenue streams from doing so. The first fully functional gambling software was
developed by Microgaming, an Isle of Man-based software company. This was
secured with software developed by CryptoLogic, an online security software
company. Both big names today.
CryptoLogic was first to go live with
their InterCasino brand and first to offer
casino bonuses. Back then
software had to be downloaded onto a PC/laptop so that the games were just
receiving live feeds from the operator and the processing of the graphics was
done by your own hardware. Communication speeds were too slow for live
interaction with a server based suite of games.
Kahnawake Gaming Commission was created in the
Quebec region of Canada. They asserted that the jurisdiction to enact the
Kahnawake Gaming Law is an aspect of Kahnawake's Mohawk or "aboriginal rights".
They have never been challenged by the state or federal government. This
Commission established a precedent for other "First Nation" communities around
the world, particularly USA and Australia, to establish online
Games that can be played in these casinos are all agreed with
the state government and are many but with large casinos the odd one or two
unusual table games can be accommodated. They are very much the games you can
find around the world in the larger casinos.
On 1 January 1998 Planet Poker dealt a
$3$6 game of Texas hold 'em poker. They had just a handful of players and
it took until February for their game to run 24 hours through the night and
into the next day. Nearly all the players were using dial-up Internet
Microgaming launch the first progressive slot called Cash
Splash. By the end of the year there are 700 real money online
arrives with superior software and becomes the market leader.
All major operators in the UK have an online
presence but two thirds of the $2.2 billion worldwide revenue comes from US
players. Betting exchanges begin with the start of Betfair. Cryptologic began
to trade on the NASDAQ stock exchange under CRYP.
Gambling Moratorium Act was passed by the Australian Federal Government. This
Act made it illegal for any Australia-based online casino or Sportsbook, not
operating prior to May 2000, to operate.
8 million online players and UK territories,
Isle of Man, Alderney and Gibralter begin issuing
The 2005 UK
Gambling Act creates the most liberal and stable gambling environment in the
world. partyGaming, Playtech and 888.com go public on the stock
Internet Gambling Enforcement Act of 2006 (UIGEA) is United States legislation
regulating online gambling was passed by the back door under the Safe Port Act.
The UIGEA "prohibits gambling businesses from knowingly accepting payments in
connection with the participation of another person in a bet or wager that
involves the use of the Internet and that is unlawful under any federal or
state law. Trouble is it did not define what unlawful gambling is and still
does not. Many world players withdraw from the US market and lose huge volumes
Arrest of BetOnSports CEO, David Caruthers, in
provider Planet Poker suspended real money due to the Unlawful Internet
Gambling Enforcement Act of 2006.
Worldwide revenue surpasses $20
Over 1000 online
casinos. PartyGaming and Bwin merge to form a company valued at over $3
billion, the largest public gaming company in the world.
MegaFortune slot pays a Norwegian student $11.7
million. "Black Friday" in the USA as the government shuts down Pokerstars and
The world goes mobile. Mobile gaming
hits $10 billion. Social Gambling explodes with casino gaming accounting for
20% of the $8 billion social gaming market.
Online gambling market reaches $45