We have put together an interesting yet informative history of how we believe online sportsbooks came to be. We have broken the history of online sportsbooks over stages dating back to the turn of the 20th century.
1900’s and Sports Betting
The United States has had a long history of allowing some forms of legal gambling and a degree of tolerance of illegal gambling through on and back in the early 1900’s offline gambling. Societal tolerance and acceptance of legal gambling can change rapidly. Scandals and political control by gaming interests have led to backlashes which result in regulation and/or prohibition.
Lottery Scandals Led to Gambling Prohibition. From the early 1900’s till 1930 prohibition was in affect making gambling illegal. This led to major gangs and mobsters earning millions from gambling and becoming a force not to be reckoned with.
Great Depression Period of 1930’s US
In 1929 the US saw a collapse of the stock market which led to a great depression and high unemployment. A little sleepy town in the desert of Las Vegas quickly became the number one gambling destination when the prohibition was slowly lifted across the US. Las Vegas remains today the number one land based gambling destination, closely followed by Macao.
1990’s Introduction of Online Sportsbooks
In the mid 1990’s several operations which were phone based betting shops went into the online sportsbook world which soon led the way for them doubling, trebling their player base over night and several overnight Internet millionaires.
After September 11th online gambling was becoming a very powerful force, and there were several hundred online sportsbooks to choose from.
Post 2006, UIEGA
In 20006 the UIEGA took affect killing off several gambling operation when it became a crime to accept online gambling transactions. Several online sportsbooks then moved to get a licence out of Antigua which is regulated and won a case against the US allowing them to run gambling operations.
Now gambling operations have moved away from .com to domains such as .ag etc… and they continue to cater to players from the US accepting payments and ability to payout US players.