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How do online casinos work?

Here’s everything you need to know.

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The first gambling sites appeared on the Internet in the mid-1990s. During this time the basic principles of the online casino were laid down, which are still valid by the present day. Operators use digital technology to determine random winning combinations, receive bets, payout winnings and conduct draws. But this approach requires a lot of effort, money, specially developed software, and various online solutions.

A Brief History of Online Gambling

  • The early 90s – the first free slot machine emulators appear on the Internet;
  • 1994 – Microgaming develops the first digital casino platform;
  • The mid-90s – legislation is being formed, the first regulators appear;
  • 1996 – Playtech launches the Europa Casino website;
  • 2003 – at the initiative of Microgaming, the eCOGRA technical laboratory is created to test software and laid principles of Honest Game;
  • 2011 – NetEnt presents the first video slots for mobile devices;
  • 2014 – Microgaming releases the first mobile casino software;
  • 2016 – Online casinos became available in VR;
  • 2019 – Implementations of AR technologies started to appear in online casinos.

Random number generator

The best example of a classic casino meets only two conditions: the outcome is unpredictable, and victory depends on the player’s luck. Compliance with these principles in ground-based institutions is achieved through the use of certain objects and devices – a deck of playing cards, a roulette wheel, slot machines, etc. They guarantee a random outcome of the game.

However, conditions for gambling in casino online is based on randomly determining the outcome of a game without the use of special devices and human involvement. That is why RNG (the random number generator) was made. RNG – a program that is responsible for the prize combinations, regardless of the player’s actions. RNG guarantees the absence of any pattern in the sequence of issued outcomes. The work of modern video slots, roulette, video poker, etc. is based on this principle.

Payment Security in casino online

The possibility of payment on the Internet exists longer than online casinos work, but with their appearance, the principles of payments on the Internet have changed. All funds are stored on the client’s account, and payments are made in both directions: the player makes deposits, and the casino pays winnings.

The gaming account is similar to the online banking account, tied to a specific client and must be reliably protected. Data is stored on servers, access to which is open to a narrow group of specialists and is under the control of the security service. For convenience, players connect new payment systems, expanding the list of payment methods for deposits and withdrawal of winnings.

The requirements for operators regarding the protection of personal information are taken into account in a number of laws. For example, in 2018, a regulation of the European Union came into force, which regulates gambling business and all payments made in this niche.

Work control

The operation of the sites is governed by the laws of the country under whose jurisdiction the operator is registered. Most often, licenses are issued by the gaming commissions of Curacao, Malta, and Great Britain. These organizations monitor the implementation of laws by the company and protect the interests of players. Regulators strictly monitor how online casinos work, and in case of violations or complaints, they may issue a warning, fine or revoke a license.

Honest casinos operate strictly within the law and use only licensed software. Reliable providers issue licensed software with valid certificates.

All licensed software must undergo regular checks. The presence of a certificate is an important confirmation of the honesty and reliability of the casino operator. The most respected software auditors are eCOGRA and iTechLabs. Inspection information is usually found on the casino website and on the pages of technical laboratories.

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