The Evolution of Online Casinos: A Brief History



‍There’s no denying that the online casino industry has grown exponentially in recent years. With new players entering the market almost every day and existing operators continuing to expand their user bases, the virtual gambling sector shows no signs of slowing down just yet. But how did we get here? How have online casinos flourished so much in recent years? Well, it’s a long story. And this article will trace its origins and evolution from the early days of dial-up internet right through to today’s increasingly sophisticated software providers. So let’s get started!

The Early Days of Online Casinos: Dial-Up Internet

The first online casinos emerged in the late 1990s, a time when dial-up internet connections were the standard amongst most residential users. These early casinos used fixed-game software, meaning each game’s outcome was pre-determined. This kind of game was especially common in sportsbook betting, which operated as one of the most popular features offered by early online casinos. Fixed-game software allowed sportsbook operators to control their entire experience, eliminating all fraud or manipulation risks. In fact, this fixed experience allowed operators to host online casinos on a dial-up connection, which would have struggled to maintain a real-time connection between players.

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The Rise of Online Casinos: Fixed-Game Software

While fixed-game software limited the scope of online casinos, it allowed them to flourish in the dial-up era. The industry grew rapidly in the early 2000s, and by the end of the decade, players could enjoy a wide range of casino games – including slot machines, blackjack, and roulette – all from their homes. However, not all fixed-game software was created equal. Many providers used a similar model to sportsbooks and fixed their games, which proved to be a major turn-off for many players. In fact, casinos using fixed-game software began to lose players; many were unhappy that they could not win at all if they didn’t know how to play the games correctly.

The Evolving Environment of Online Casinos

By the early 2010s, many consumers were growing increasingly disillusioned with the fixed-game industry. Players had become tired of losing money with no chance of winning, and they were becoming worried that unscrupulous operators were defrauding them. As such, the industry was beginning to lose its appeal, and there was a growing sense that online casinos would not last in the long term.

Growth in Fixed-Game Software and Disillusionment among Consumers

In the mid-2000s, gaming software providers began to transition toward fixed-game software; this provided immediate benefits to operators and is one of the reasons why fixed-game software became so widespread. Because operators no longer had to rely on their users having a persistent internet connection, they could host their games on any device: desktop computers, laptops, smartphones, and even tablets. As a result, the number of users and betting volumes increased significantly, and more and more people began betting on sports, playing slot machines, and gambling on blackjack. However, a major drawback of fixed-game software was that players knew exactly how each game would end. This meant that many players were able to accurately predict the outcome of games and win large amounts of money.

From Disillusionment to Innovation: The Rise of Real-Time Gaming

As many consumers began to grow disillusioned with online casinos, technology companies focused on developing more sophisticated software. This allowed the industry to evolve and grow in new directions, with many software providers aiming to create an experience that was as close to a real casino as possible. The biggest change was the adoption of real-time gaming, which was nothing like the fixed-game software that had come before it. Instead of pre-determining each game, real-time providers allowed players to compete against one another in a virtual casino setting where the outcome of each game was not known to anyone. This meant that players could no longer accurately predict the outcome of each game, and the risk of being defrauded was far lower than it had been in the past. As a result, real-time gaming quickly became the standard across the entire online gambling sector.

The Legalization of Online Casinos in the USA

In the early 2010s, online gambling was illegal in the USA. However, this started to change in 2013 when the Department of Justice issued a statement clarifying that the Wire Act of 1961 only applied to sports betting. This paved the way for states to legalize and regulate online casino games, and by 2018, a number of states – including New Jersey, Nevada, and Pennsylvania – had done so. The legalization of online casinos in the USA has been a major boost to the industry, and it is now worth billions of dollars.

This change saw a monumental increase. For example, Ohio online gambling sites that were created after the 2013 statement went from generating $0 in revenue to over $1 million in just a few years.


The evolution of the online casino industry has been a long and eventful journey. The industry has grown significantly in recent years and shows no signs of slowing down. With new players entering the market almost every day and existing operators continuing to expand their user bases, the virtual gambling sector shows no signs of slowing down. In fact, with the continued development of real-time technology, the online casino industry is likely to flourish even more in the years to come.

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