Even before written records of history, games of chance have been present for thousands of years, and they have existed in every organized society that has ever existed. The history of gambling on games of chance spans astragali, fighting animals, dominoes, playing cards, and slot machines.
The emergence of casinos is more recent. They provide various games under one roof, frequently in conjunction with other services like dining, drinking, accommodation, entertainment, etc. The earliest casinos are thought to have flourished in China around 1000 BC. In 1638, the first casino of note was founded. Il Ridotto was a section of Venice’s Palazzo Dandolo, also known as the Hotel Danieli. While mixing with Venice’s elite, players participated in games of Biribi (an antique version of roulette) and based (a vintage card game). The Ridotto stopped serving the general public after 136 years in business.
The Ridotto could be viewed as a Generation 0 casino, the originally organized gambling establishment with amenities. Casinos have developed into a multi-hundred-billion-dollar industry over the years, with entire cities like Las Vegas and Macau built around their offerings. The market’s overall scope and variety are astounding. For instance, it’s claimed that the tiny pachinko parlors in Japan bring in more money than all the casinos in Singapore, Macau, and Las Vegas. Digital casinos are replacing physical ones over time, and even these online casinos are changing to make room for decentralized gambling establishments.
When the phrase “casino” is used, most people immediately picture an unassuming whiteboard with the letters “Las Vegas” emblazoned on it and lit up with neon signs. Modern (or Generation 1) casinos are built in a complex way that encourages customers to play more, a frequent theme in Hollywood heist films. Most frequently, even travel fans who haven’t spent a penny on gambling would recognize the titles “Bellagio” and “Caesars Palace”!
It’s safe to assume that these casinos have evolved into representations of luxury and grandeur. Casino-based tourism has grown in popularity in cities like Macau, Las Vegas, and Monte Carlo (Monaco). Nearly all popular cosmopolitan travel locations, like Melbourne, Singapore, London, and Paris, boast of having casinos where visitors can spend that one wild night of celebration.
It should be no surprise that the worldwide casino market is now worth several billions of dollars. In actuality, the worldwide gambling industry was estimated to be worth USD 465.8 billion in 2020 and is anticipated to grow at a CAGR of 7% to reach USD 674.7 billion in 2025. The actual brick-and-mortar casinos account for a considerable chunk of this valuation.
However, the COVID-19 epidemic severely constrained this market in 2020. Government-imposed travel restrictions, lockdowns, and severe restrictions on social gatherings all harmed how casinos operated daily. People were compelled to switch to online means, which could be safely used inside their houses. The internet gambling sector has grown rapidly as a result of this shift in trend.
2nd generation
Microgaming created the first online casino software as early as 1994, and creating player tracking systems and casino management tools took an additional year. Finally, in 1996, CryptoLogic introduced “InterCasino,” the first online program that provided both casino games and an integrated online payment system. This was the year that CryptoLogic built a secure online financial transaction system.Today’s internet (or Generation 2) casinos almost always include well-known casino games, including poker, roulette, and blackjack. These casinos can be divided into two main groups: “virtual” and “live dealers.”
To replicate the real-world casino experience, virtual casinos use pseudorandom number generator (PRNG) software to determine the outcome of every move. This software makes sure that the outcome is completely random and unpredictable. On the other side, live dealer casinos transmit the games in real-time from a land-based casino or a studio, using real-time results to determine the outcomes of the player movements.
Online casino games have witnessed a rapid rise in use and popularity over the past ten years with the spread of high-speed internet and the falling cost of smartphones. According to studies, the worldwide online gambling business had a value of USD 66.7 billion in 2020 and is predicted to rise rapidly over the following ten years.
According to recent trends, online casinos pose a serious threat to Generation 1. In most situations, it costs a lot of money and time to get to the casino and wait before playing any games. Instead of spending their savings on transportation and other related expenses, consumers have started spending them on online gaming.
The affordability and accessibility of mobile (Generation 2) casinos have been increasingly tipping the scales in their favor, even though nothing can compare to the atmosphere of a true brick-and-mortar casino. Online apps have also been reshaping this traditional industry since the COVID-19 epidemic.