Online gambling has come a long way since the first virtual casinos launched in the 1990s. Discover the key milestones that shaped the $66.7 billion global industry we know today.
The inception of online gaming venues like Rocket Play dates back to 1994 when the tiny Caribbean nation of Antigua and Barbuda passed the Free Trade and Processing Act, allowing licenses to be granted to organizations applying to open online casinos. This sparked a rush of entrepreneurs looking to capitalize on the fledgling industry. Just one year later, in 1995, the first online casino went live.
Growth was initially slow, hampered by the lack of trust in the security of online financial transactions and slow connection speeds. However, the launch of several major online casinos through 1996 and 1997 started to gain significant traction with Microgaming launching the first online slot machine.
The Dot Com Boom Fuels Industry Growth
The late 1990s saw the beginning of substantial industry growth, aided by the dot com boom. Some key developments in online gambling during this period included:
- Cryptologic launched the first branded online slot in 1996 based on Marvel comics characters. This introduced trusted household names into online casinos.
- Introduction of the Video Lottery Terminal (VLT) in 1997. The VLT brought a more advanced and engaging experience closer to a real-world casino.
- Online Casinos started processing over $830 million in 1998 – triple the amount from two years earlier indicating the acceleration in adoption.
New Millennium Brings New Countries Online
The industry continued to expand in the early 2000s as more countries started regulating and legalizing online gambling. With regulation came an added layer of trust and protection for players. Crucially, in 2000, Australia became the first country to fully legalize online casinos nationally, paving the way for many others to follow.
Some other key developments post-millennium included:
- The US passed the Unlawful Internet Gambling Enforcement Act in 2006, prohibiting the transfer of funds from US financial organizations to online gambling sites. This forced sites to shut down access to American players.
- Mobile casino apps started emerging in the late 2000s as smartphone technology improved. Players could now access real money games on the move.
- The UK legalized online gambling nationally in 2005 valued then at £650 million. The well-established legislation brought secure online gambling into the mainstream.
Recent Explosive Growth
While the early 2000s saw healthy growth, the last decade has brought truly explosive expansion. By 2012, over 2,300 online gambling sites existed globally. Just seven years later and this figure leapt to a staggering 7,400 sites, which cannot but attract attention.
Several factors continue propelling growth:
- Mass smartphone, tablet and mobile internet adoption making online casinos accessible click here anywhere at any time.
- Countries internationally update legislation to allow licensed online gambling operators. 30 US states have now legalized online casinos in some form.
- Innovation in gaming technology like virtual reality creating immersive real-world casino experiences virtually.
- Mainstream adoption from major sports brands and TV/media integrating online betting into content.
The Industry Today
From its humble beginnings in the mid-90s, online gambling has exploded into a $66.7 billion global behemoth in just 30 short years.
To put this astronomical growth in perspective, consider that estimates project the industry to nearly double again to $125 billion by 2027.
While the internet fuels scalability, technology continues enhancing accessibility. As smartphones turn 20 years old, Gen Z is the first demographic with internet gambling available their whole adult lives. This promises to further embed online betting into the mainstream and fuel stratospheric, potentially trillion-dollar growth in the coming years.