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History of internet gambling

Three important developments set the stage for the emergence of Internet Gambling in the 1990s. The first was the small Caribbean nation of Antigua and Barbuda creating a ëfree trade zoneí in 1994 that effectively allowed U.S. bookmakers (based in Antigua) to accept bets by phone on horse racing and sports, theoretically immune from U.S. gambling prohibition laws. The second was the development of gambling software by Microgaming in 1994/1995. The third was the development of encrypted communication protocols by CryptoLogic in 1995 that allowed secure online monetary transactions.
 
For the most part, this expansion was initiated by new companies not associated with any land-based gambling venues. In 1999 Lasseters in Alice Springs, Northern Territory (Australia), became the first land-based casino to go online. U.K. based William Hill and Ladbrokes are established land-based sports/racebooks that went online in 1999/2000. Tentative forays were made by a few other land-based companies (e.g., MGM Mirage, Aspinalls, Kerzner International). However, because of the grey legal status of online gambling, most established companies opted not to do anything that might jeopardize their licenses
 
The most recent additions have been ëskill game sitesí and ëbetting exchangesí. Skill game sites offer a wide range of word games; puzzle games; strategy games (e.g., mahjong, chess); sports games (e.g., billiards, mini golf); card games (e.g., solitaire); arcade games (e.g., carnival shootout); video games; and trivia games. Most typically, players pay a fee to enter a tournament, with the winner(s) collecting the majority of the entrance fees. Sometimes the contest can be with another specific individual and sometimes it can be against your own previous ëhigh scoreí. Betting exchanges are sites that create a marketplace for bettors whereby they post potential wagers on certain events (with accompanying odds and stake size) in the hope that someone will take them up on their offer(s). These wagers are primarily on sporting and horse racing events, but also include wagers on politics or reality television events, etc.

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