History of Online Casinos
Date Added: December 5, 2008
Microgaming and Cryptologic were at the forefront of the origin of online casinos. The third big player is Playtech.
Microgaming Software Systems Limited is a privately held software development company registered in the Isle of Man. In 1994 Microgaming released the world’s first online casino software. The software enabled players to connect through the Internet and play casino games online. In 1995 Microgaming launched its casino management system using which all the online casino functions, including those of accounting management and player tracking, could be performed. Since then Microgaming has remained the leading software supplier for the online gaming industry, both in terms of quantity and quality. Today Microgaming powers over 120 online casinos with over 350 online games and adds about 4 games every month. Over the years it has introduced innovative features to online casinos like progressive jackpots, live dealer games and innovative forms of video poker and slots. Microgaming has also played an important role in ensuring responsible behavior in the online gaming industry by founding organizations like Interactive Gaming Council and eCOGRA.
Cryptologic started at the same time as Microgaming. It was founded by Andrew and Mark Rivkin in 1995 from the basement of their parent’s house. The brothers had developed a secure online financial transaction system and were looking for an application in which to use it. They hit upon the idea of an online casino and the world’s first online casino, InterCasino, was born in 1996. As business grew so did Cryptologic. It listed on the Toronto Stock Exchange in 1998, on the NASDAQ in 2000 and on the London Stock Exchange in 2003. Cryptologic operates from Dublin in Ireland. Cryptologic has developed a specialty in what it calls branded slots. These are slots based on the characters from Marvel Comics, like Hulk and Spider Man, which exploit the brand equity of both Cryptologic and Marvel Comics. In terms of volume of business, Cryptologic is just behind Microgaming.
Teddy Sagi and entrepreneurs from the casino, software engineering and multi-media industries founded Playtech in 1999. In 2001 the first Playtech casino, Club Dice Casino, was launched. Though Playtech was a later entrant, its software incorporated all the contemporary features like comp points systems, player VIP clubs, real time game and transaction histories, multi-platform compatibility and multiplayer modes. In 2002 Casino Solei became the first European land-based casino to go online and it used Playtech’s platform. In 2004 Playtech launched the iPoker network, which is one of the most popular online poker platforms today. In March 2006, Playtech’s shares successfully listed on the London Stock Exchange with a valuation of £548 million. Over a period of time Sagi has sold his holding in Playtech for a total of $540million, though he still controls 41% of Playtech through his investment firm Brickington.
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