A brief history of gambling and iGaming in the US

Although gambling and iGaming are popular throughout the world, it’s hard to deny the special place it has within the US. When we think of casinos, many of us immediately picture the glittering lights of the casinos along the Vegas strip.

However, gambling wasn’t always so popular within the country, with harsh legislation across some states. In this article, we’ll take a brief look at the history of gambling and iGaming within the USA. Let’s get started!

The origins of gambling within the US

Gambling is one of the oldest hobbies, with evidence of dice and playing cards dating back to ancient civilizations like 3000 BCE Mesopotamia and 9th century BC China. The earliest form of gambling within the US likely dates back to Native American tribes who had their own types, like ‘hand games’, that involved guessing which hand an object was hidden in. However, very little evidence of these traditions remains today.

In the early 17th century, the British, French and Spanish colonists brought their own gambling traditions to America. The Spanish brought an early version of the classic casino game we know today as blackjack – then called ‘Venti-Una’ (21 in English) – and the French introduced table-top games like roulette to the area.

Also popular was betting on horse racing, with hubs quickly forming in Virginia and Kentucky. The first law relating to gambling was also introduced around the same time in 1638 by Puritans in Massachusetts. It outlawed owning any form of gambling equipment, such as cards or dice, and deemed gambling a form of ‘idleness’ and a sin.

One form of gambling emerged as very popular during this time throughout the area – lotteries. The first lottery was held as early as 1616 in Virginia and quickly spread until there were 392 lotteries across the 13 colonies. They were seen as a way to raise money for the development of local infrastructure and services, with institutions like the University of Pennsylvania relying on this funding to survive.

As the British colonists tried to exert their control over these lotteries, it led to further tension, up until the the American Revolution in 1775.

Despite their increasing popularity, many games – horse racing in particular – remained inaccessible to those who weren’t part of the financial elite. In 1674, a tailor in York County, Pennsylvania, was fined for racing his horse, as the sport was reserved ‘only for gentlemen’.

Rising concern about the morality of the hobby was expressed by the strong Baptist, Mormon and Methodist populations across the states.

Restrictions on gambling in the 19th century

After gaining independence in 1776, the United States of America started introducing reforms to the gambling system. Due to the increasing influence of religious groups like the Baptists and Methodists, who viewed the practice as ‘sinful’, many states began to heavily restrict or ban gambling.

One of the first of these was Louisiana, which banned gambling throughout the state – except for the then-capital New Orleans – in 1806.

In 1814, Missouri followed suit and outlawed any form of gambling, with fines for those operating forms like table games reaching up to $500. In 1830, lotteries were banned throughout the country due to religious concerns, returning only in 1860.

By the end of the century, most states had followed suit in banning gambling. Only Kentucky, Louisiana and Missouri still allowed lotteries in their states.

There was still some progress within the industry, with the first casino opening in Washington DC in 1832. New Orleans became a hub for gambling when the Crescent City House opened in 1827 as a 24-hour casino, using gambling equipment imported from Europe.

Kentucky became the center of horse racing throughout the country, with the Kentucky Derby taking place in the state annually after 1875.

Heavy repression throughout the country, including mandates that ordered the destruction of all gambling equipment in the state of New York, led to a thriving underground gambling scene. Illegal gambling was a prevalent problem at the time, with saloons and illicit casinos like the Beach Club Casino in Florida appearing throughout the country.

Providers also got inventive, finding loopholes in the system, like gambling on riverboats. An iconic story was born in 1876 when Wild Bill Hickok was shot when playing poker; his hand of all aces and eights came to be known as the Dead Man’s Hand. 

The introduction of innovations in gambling 

Despite the harsh legislative view of the time on gambling, there were still some important innovations made in the country. Around 1885, the first coin-operated machines began to appear, with a wheel mechanism powered by a user inserting a coin.

Although a croupier was still responsible for dishing out any winnings, the invention represented the start of many gaming mechanisms we know today. 

At some point between 1887 and 1895, Charles Fey invented the Liberty Bell machine – the blueprint for the modern slot machine players use today. Casinos and saloons across his native California were quick to introduce the machines.

When legislators sought to remove slot machines, they were disguised as cigarette or gum dispensers. By the turn of the century, his slot machines had incorporated the iconic symbols we recognize today, like fruit and money symbols. 

Reform sees growth in the industry

Following the Great Depression of 1929 to 1939, some states began reintroducing or relaxing rules on gambling to stimulate their economy. Las Vegas was one of the most significant of these states, fully legalizing it during the ‘Wide Open Gambling Bill’ in 1931.

As air travel became more accessible, people from across the world came to visit Vegas’ iconic casinos, like Caesar’s Palace. Today, Vegas is a destination for players all over the world, with 79% of visitors to the city saying they gambled on their trip.

As most states within the country continued with restrictive legislation on gambling, tribal casinos began to appear on Native American lands to skirt laws. Many tribes established exclusive gambling venues within their state to support the local economy.

One example of this is the Seminole tribe, which signed a deal with Governor Ron DeSantis in 2021 to be the only provider of sports betting within Florida.

Today, most states within the US allow gambling in some form – although sometimes heavily restricted. It is overseen by the American Gaming Association, which estimated that the industry generated 1.8 million jobs and $53 billion in taxes between 2018 and 2023.

The practice still remains banned in two states: Hawaii where it was banned before it became a state, and Utah, due to the high Mormon population who view gambling as a sin. The US is now one of the global hotspots of gambling, turning over a revenue of $54.9 billion in 2022.

Slot games have remained a firm favorite throughout the centuries, leading the way in terms of revenue in the 21st century. 

The rise of iGaming

iGaming refers to any kind of gambling done online; it has become increasingly popular due to improvements in mobile technology. Due to greater accessibility in the 21st century, online gambling has now become the primary channel for gambling within the US.

It offers a combination of the convenience of being able to play from anywhere at any time, with an enhanced game library and innovative choices like e-wallet payment options. Now, players have a wide choice in online casinos, including the innovative option of sweepstakes casinos.

When searching for the top sweepstakes casinos, players go to review sites like SweepsChaser. By thoroughly analyzing each casino across factors like customer experience, bonus options and game variety, they’re able to provide players with only the top options. 

The US is fast becoming a center of iGaming as well as the home of land-based casinos. A huge variety of games is available, including classics such as roulette and poker, and more innovative options like virtual reality blackjack and interactive slots.

VR blackjack uses cutting-edge VR technology to immerse players within a casino environment through interactive elements like wheels, chips and dealers. Interactive slots include mini-games that can influence the overall outcome. Through these innovative options, the industry makes sure to use the newest technology to their advantage. 

What could the future of gambling and iGaming look like in the US?

After a turbulent history of gambling and iGaming within the US, the industry is truly starting to take off within the country. Despite long being a leader within the land-based gambling industry through its iconic casinos in Vegas, the US has also embraced iGaming. By using innovative technology and producing exciting new games, the online sector has become increasingly popular.

In the future, we could see even more players move over to this version of gambling due to its convenience and game selection. Overall, despite a history of restrictive legislation, the US has fast become a world leader and looks forward to a bright future within the gambling and iGaming world.