The Weird History of Bitcoin Casinos
Currently, there are over 2,000 crypto and Bitcoin casinos, and Crypto Lists has reviewed more than 250 of the best ones. But not long ago, there were none. Indeed, with every passing day, it seems like another one has sprung into existence.
While Bitcoin casinos make perfect sense now, it's easy to forget what the Bitcoin landscape was like back in the day. Those of us who were into Bitcoin in the early days are the ultimate geeks and wear that badge with honor.
Let’s unlock the archives and explore just how we got to where we are today. Because Bitcoin gambling is not going back in the box; cryptocurrency and crypto casinos are here to stay.
The Acolytes of Satoshi
The birth of the Bitcoin blockchain in 2008 heralded the start of something new. Perhaps similar to the invention of the proto-internet, nobody – not even the creator himself (or themselves, depending on who you believe) – could have predicted the impact of their creation.
In the early days of Bitcoin, it was considered a plaything for nerdy types. Now, everyone books holidays over the internet, orders hedge trimmers to shape their bushes into statues, works mostly online, and engages in countless other activities. Today, numerous competing blockchains, such as Ethereum, Solana, and Tron, exist. But few, if any, can match Bitcoin's level of anonymity and decentralization.
iGaming: A Novel Sector
Even avid iGaming fans might be surprised to learn that the first online casino was launched as far back as 1995. Originally developed by software developer Playtech, the technology was rudimentary for its time. However, things soon changed with the introduction of broadband Internet.
The rise of online casinos became even more pronounced with the advent of smartphones. Countless games could now be accessed on the go, offering an excellent way to enjoy downtime or even generate a side hustle. Players could watch a sports game with friends and quickly place a bet during halftime.
Of course, the software and payment methods evolved alongside the games. As 3G speeds gave way to 4G wireless connectivity in the mid-2010s, unique options such as live dealer games became available. These are some reasons why the entire industry is now valued in the 11-figure mark.
Garden of Eden
During the bullish climate of the online casino sector following the global recession, cryptocurrencies began to take hold within a handful of investment circles. Still, it would take the casino community a bit more time to warm up to what these decentralized transactions had to offer.
The crypto ecosystem began to enjoy mainstream popularity thanks to the meteoric rise of benchmark currencies such as Bitcoin and Ether (ETH). If these assets could be used as tradable items, why not present them as an online casino payment option? While there is no real consensus on exactly when the crypto casino community began to pick up steam, countless options are now accessible to the general public.
For those who are desperate to know and really can’t be bothered to read any further, the first Bitcoin casino was created by Erik Voorhees in 2012 with SatoshiDice. Voorhees has continued to be a player in the world of cryptocurrency with projects like ShapeShift.
A Brief History of Time (…measured in BTC)
The history of the Bitcoin casino space can be split into four sections:
2009-2011: The Birth of Bitcoin and Early Adoption
Bitcoin, created by an unknown person or group of people using the name Satoshi Nakamoto, was introduced in 2009. In its early years, it didn’t see much usage in online casinos due to its lack of widespread adoption and volatile nature.
2012-2014: Initial Online Casinos Accepting Bitcoin
The first online casinos began to accept Bitcoin around 2012. Bitcoin offered a level of privacy, security, and transactional transparency that other payment methods didn’t, attracting both players and initial startup casinos. One of the first known Bitcoin casinos was SatoshiDice, founded in 2012.
2015-2017: The Rise of Bitcoin Casinos
The mid-2010s saw a significant rise in Bitcoin casinos as Bitcoin became more accepted and understood. Online gambling sites started to value Bitcoin for its decentralization, low transaction fees, and fast processing times. Bitcoin’s anonymity also made it increasingly attractive for players and casinos alike.
2018-Present: Regulation and Continued Growth
As Bitcoin and other cryptocurrencies have become more popular, they have attracted the attention of regulators worldwide. This has led to a shift in the landscape of Bitcoin casinos. Despite this, the number of casinos accepting Bitcoin and other cryptocurrencies has continued to grow, reflecting the ongoing adoption of digital currencies.
SatoshiDice: Setting the Scene
Voorhees launched SatoshiDice in 2012, where people could stake their Bitcoin on the roll of the dice. Thanks to Bitcoin, it could be completely transparent.
It was a groundbreaking event in the world of anonymous crypto casinos. At its peak, half of Bitcoin transactions were the result of Voorhees's innovative Bitcoin casino. According to Voorhees:
“SatoshiDice showed you what the odds were. It was transparent with the odds, and you could prove that the rules were fair.”
Government bodies overseeing traditional gambling were irrelevant in this new world of complete transparency. Based on the simple action of a dice roll, it was easy to understand and engage with, even for new BTC holders.
Suddenly, Voorhees was running the world's biggest Bitcoin casino. With regret, Voorhees decided to sell the business to concentrate on other cryptocurrency projects. His business sold for 126,315 BTC in 2013, which is worth just under $3 billion as of August 2023.
However, the US SEC pursued him for making a public offering of unregistered securities, despite his investors' massive returns. He eventually paid a $50,000 fine after dealing with the SEC for nine months.
SatoshiDice in 2018
Today, SatoshiDice comes across as a quaint relic of a bygone era. There’s only one game available compared to the plethora of tournaments, slots, and sports betting on today's crypto casino sites. Since 2018, it has only accepted Bitcoin Cash, abandoning the original BTC principles it helped establish.
If you’d like to try a fully-fledged Bitcoin casino with lots of different options, give LTC Casino a spin!
The Age of Pioneers
Once the first Bitcoin casino was launched, several quickly followed. Here are a few of those early movers in the space, exploring a brave new world:
- SatoshiDice: Launched in April 2012, considered the first operational Bitcoin casino, founded by Erik Voorhees.
- Bitzino: Launched in 2012, offered various casino games, including blackjack, slots, and roulette, all based on Bitcoin.
- SealsWithClubs: Known primarily as a Bitcoin poker site, it also had casino-style games such as video poker and blackjack. It gained popularity in the early Bitcoin gambling scene.
- BitLotto: A Bitcoin-based lottery platform that allowed users to purchase tickets with Bitcoin for a chance to win the jackpot.
- Bit777: Launched in 2013, offered a variety of slot games and table games.
- StrikeSapphire: Provided a range of casino games, including video poker, slots, and baccarat.
- Satoshi Slot: A simple Bitcoin slot machine game launched in 2013, where players could bet with Bitcoin and potentially win more coins.
If we had to pick one person instrumental in the early days of crypto casinos, it would be Erik Voorhees. At one point, he was responsible for over half of Bitcoin transactions online.
Voorhees once was a Bitcoin maximalist, saying, “I used to be a maximalist. Obviously, when I got into Bitcoin, it was kind of the only coin. As other coins came out, I dismissed them, scoffed at them, and generally didn’t like them because I felt like they were a distraction from the important project.” He changed his mind around 2014.
Competing Claims
Some people have claimed that bitZino was the first Bitcoin casino. After some research, it appears that SatoshiDice beat bitZino by a few weeks to claim this historic crown.
Owner and developer of bitZino, Larry Tad, claimed in interviews that any single-player game could be made provably fair. On a well-known BTC-focused forum, he appeared in mid-June 2012, explaining that an HTML5-powered Bitcoin casino had been created, offering blackjack, craps, roulette, slots, three-card poker, and video poker.
One of the largest hurdles to creating a good provably fair system is explaining to users exactly what it is. When developing our provably fair system at bitZino, we put a lot of effort into making sure we accurately portrayed to our users how it all works.
– Larry Tad, bitZino, Bitcoin Talk Forum, June 15, 2012
The Wayback Machine – a tool to look at the history of websites via a digital archive – picks up the bitZino site in January 2013, while SatoshiDice was archived on May 12, 2012, which is one month earlier than the bitZino opening announcement on bitcointalk.org on June 15th. In our estimation, this makes SatoshiDice the first Bitcoin casino.
Historic Bitcoin Casinos: Surprise Contenders
SealsWithClubs is worth mentioning as it was a Bitcoin poker site created in 2011 but not a fully-fledged Bitcoin casino, therefore failing to take that top spot. It is, however, the first Bitcoin poker site, which is a high honor indeed.
Many other early adopters in the historic Bitcoin casino space have sunk into the murk of the virtual history of the internet. Eventually, mainstream
