ABSTRACT

When public and commercial use of the Internet began in the early and mid-1990s, it soon became apparent that this could also be a medium used for gambling. Two other developments helped set the stage. The first was the creation of gambling software by Microgaming in 1994/1995. The second was the development of encrypted communication protocols by CryptoLogic, in 1995, that allowed secure online monetary transactions. In 1995, a few sites (e.g., Gaming Club) began offering casino gambling games online without real money being wagered. Some sportsbooks (e.g., Intertops Casino, Sports Book, Ladbrokes) also created websites that listed their odds as well as toll-free numbers to phone to place bets. The first case of money actually being wagered over the Internet by the general public appears to be the online purchase of lottery tickets from the International Lottery in Liechtenstein for a manual drawing that occurred on October 7, 1995 (Romney, 1995). 1