Games of chance are firmly anchored in today’s society, worldwide and in all classes. The industry that has grown up around them turns over billions of euros every year. Behind this development lies a long history, which is characterized by power struggles and bans. In the following, we present the most important milestones in the history of gambling.
Approx. 3000 BC: In the Beginning, There Was the Cube
People began to play around 3000 BC. BC, first with the cube. In China and in the area of what was then Mesopotamia, researchers found the first specimens, which at that time, however, still differed in shape and size from today’s specimens. The dice – as we know them today – were probably invented around 1000 years later in Egypt.
The dice game was not only popular in the Orient, but it also found enthusiastic fans in ancient Rome. There the rulers tried to stop the emerging game early by only allowing it on Saturnalia, the holidays in honour of the god Saturn. Likewise, the Teutons indulged in the thrill of the dice on the other side of the Limes. It is not uncommon for them to jeopardize their belongings or even their personal freedom.
Approx. 500-1500 AD: Moral Concerns – Gambling in the Middle Ages
Just like the rulers in antiquity, the rulers of medieval Europe were not entirely comfortable playing. There were concerns from both the secular and the ecclesiastical; some feared for the labour of their subjects, others expressed moral doubts about gambling.
Attempts to ban it, however, have failed in most cases. The people always found new ways to pursue their instincts. That was not entirely without advantage for the authorities, because they at least benefited financially from the players through a targeted tax and duty obligation.
In the beginning, festivals, fairs and the carnival were popular meeting places for playing, but these were increasingly displaced by bans so that people mainly met in inns – the upper class mostly met in their own “playhouses” – to challenge their luck. Here the legislature regulated the game through certain regulations – and asked the operators to pay.
A Special Form of Bet: Life Insurance
Already in the Middle Ages, there was a special type of bet in Genoa and Antwerp, which we know today as life insurance. Bets were placed on the “life and death of people.” It was thus possible for commercial travellers, for example, to protect their families before they embark on a dangerous voyage by making a bet on their own death. If the traveller did not return home safely, the bet was considered won, and the family paid the winnings.
Life insurance still works on the same principle today. Fraud also existed in this area at that time. So our insurance business is much older than we might have expected.
Around 1400 to This Day: Lotteries as a Popular Game of Chance – with a Social Background
The origins of the lottery lie in Italy and Holland. The first variants of the competition developed there in the 14th century. The participants were able to purchase tickets and thus secured their chance of winning at one or more previously determined prizes. The drawing of the winners mostly took place in public and was considered a popular social event. There were both private providers and public institutions that lured players with their own lottery. In many cases, the proceeds were used for social purposes, for example, building churches and poor houses or supporting fire victims.
Of course, the rulers also wanted to benefit from the upswing through the new game of chance and therefore organized their own lotteries to improve the state budget. The first number lottery – as it is played today – started in the 17th century. The introduction of the lottery did nothing to change the often negative consequences of gambling: loss of property, poverty and suicide.
Towards the end of the 18th century, however, criticism of the lottery also grew because, as with other games of chance, it was feared that the poorer classes, in particular, would gamble away too much money and neglect their work, which would prevent them from paying taxes to the ruling class could pay more. Thus, the number lottery was banned in many places.
1480: First Mathematical Considerations of the Game
From the late 15th century onwards, various scholars began to grapple with the game. Winning probabilities should no longer simply be estimated, but were now clearly calculated according to the laws of stochastics.
Today the probability of winning can be given for every modern casino game. With most games, this is, of course, only so high that the provider of the game makes the profit in the long term; otherwise, it would not be possible for casinos and gaming houses to offer games of chance profitably.
But there are also games in which it is possible to achieve a positive expected value through optimal decisions, i.e. to make a profit in the long term. However, these are games that are not played against “the bank” but against the other players. A well-known example is the different types of poker. It’s not about being better than the bank, and it’s just about beating the other players. So there are actually players here who are able to play the game profitably and make a profit on average. This principle applies not only to poker but also to many other card games. Backgammon is a well-known board game that can be played with a positive expected value under certain circumstances. Here too, high stakes are sometimes still played today.
1638: The “Ridotto” as the First Casino
The first public casino was the Italian “Ridotto,” which was very similar to today’s casinos. The famous casino in Venice was opened as early as 1638. The Ridotto was only the beginning of a glamorous casino era, as more than 100 other casinos throughout Italy soon followed. In November 1774, the Ridotto closed again. According to the proponents of gambling, the consequences were immediately noticeable because not only the casino itself benefited from the paying guests but also surrounding businesses such as the emerging textile industry, restaurants and inns.
1800: The Horse Race Attracts a Large Audience
The original chariot race is now only held in the form of trotting. Horse racing became popular in England in the 18th century and gradually spread to other countries. In Germany, the first horse racing track was opened in Bad Doberan in 1822. Originally, the races served to select the best horses for breeding, but they were bred specifically for the sport with increasing popularity.
Even today, horse betting is widespread, especially in England, and is considered a socially respected gambling form. Here, too, the chance of winning can, of course, be influenced by appropriate background knowledge, but many participants also bet just for fun and without obtaining a lot of information beforehand.
1865: The Totalizator Revolutionized Betting
When betting against a bookmaker, participants receive fixed odds. Therefore, it is already clear in advance how high the profit will be if the participant has correctly guessed the outcome of the event.
In the middle of the 19th century, a new form of wagering appeared: At the totalizator, the participants do not bet against a bookmaker but each other. The totalizator was originally developed for horse races but is still used today in the lottery, so-called football pools and similar games. The fewer players bet on a possible event, the higher the profit if that event occurs.
The players’ funds, minus a fee for the organizer, are divided among the winners in totalizator bets. Since the odds in this form of betting change until the end, no fixed winnings can be given. For example, in the lottery, the participant only learns how much his winnings are after the numbers have been drawn. For horse races, provisional quotas are usually given, but they are not binding.
For the organizer, the totalizator bet has the advantage that he does not take any risks. A bookmaker is also geared towards making a profit but may still make a loss on a sporting event. In the case of totalizer bets, on the other hand, the organizer does not act as an opponent but rather as a so-called totalizer, which merely mediates the bets.
From 1895: “Skill Games” on the Machine
The first slot machines were developed in the United States at the end of the 19th century. The Liberty Bell, invented by the German-born mechanical engineer Charles August Fey in San Francisco, was the first model with a 3-roller system.
The entertainment technology also quickly found its way to Europe but was not permitted in the German Empire and the Weimar Republic as part of the gambling ban. However, games of skill were allowed so that many more machines that worked without financial investment and the chance to win money were constructed.
Present: Betting on the Internet is Gaining in Importance
As with slot machines, betting is increasingly shifting to the internet. Significantly more betting options can be offered here, and so-called live bets can even be placed in real-time during a game. The fees are also lower because online betting operators have significantly lower fixed costs compared to established bookmakers. Nevertheless, there are still classic betting shops today. On-site betting is still very popular, especially at the horse races, because this is often viewed as a social event and going to the classic betting counter is simply part of it for many participants.
An Eventful Story That is Far From Over
Gambling can look back on an exciting history that has always been closely linked to society and the rulers. Even today, the state regulates the game with its laws in most regions of the world.
We can be curious to see how gambling will develop over the next decades and centuries because all the technical advances that the future holds in store will certainly also impact the mighty entertainment industry.
