A look back at the birth of online gaming’s revolution

In the latest issue of SiGMA Magazine, Ian Sherrington delves into a captivating exploration of the pivotal moments that shaped the online gaming revolution. His featured articles take readers on a journey from the inception of the online gaming industry to its evolution over the years. Sherrington highlights the very first instances of online wagering that transformed the landscape of gambling and the various jurisdictions that played crucial roles in its development.

The articles also offer invaluable insights from leading figures in the industry, featuring interviews and anecdotes from pioneers like David Vanrenen, who recounts his experiences with the groundbreaking launch of the first-ever online lottery, and Dr Aftab Rizvi of Gaming Associates, who shared his journey in venturing into online gambling compliance, regulations, and innovations that have shaped the sector. Together, these narratives paint a vivid picture of an industry that has continuously adapted and thrived in the digital age.

How the online gaming revolution began

In 1994, the world’s first online casino was born, created by Microgaming. This milestone was quickly followed in 1995 by the first online lottery with a dedicated payment system. Then, in 1996, Intertops launched the first online sportsbook, marking another significant advancement in the industry.

“Throughout my career, I’ve had the pleasure of meeting many of the industry’s innovators—people who came up with groundbreaking solutions to new challenges. These are the individuals who laid the foundation for what the industry is today.”
– Ian Sherrington, Chief Executive Officer of Crownstar

This article defines the very start of the industry, focusing on the launch of the first online casino and online lottery.

The birth of the world’s first online lottery

In the 1990s, David Vanrenen launched the world’s first online lottery, ILLF, in Liechtenstein. His pioneering vision reshaped internet gambling and payment systems, ultimately leading to the creation of Earthport and Visa Direct.

In the early 1990’s, David was running a software house in the UK and South Africa. The business specialised in creating trading systems for Reuters and had gained valuable technical experience, and communications.

David saw the success of national lotteries around that time. He realised the potential that a new kind of lottery would have; an internet lottery. Not only could he, perhaps, make some money but he would definitely do some good in the world.

The first job on David’s list was to get a respectable charity on-board. Via his contacts, David met with The Red Cross in Geneva. He introduced them to the idea of an Internet Lottery. They thought it was pretty cool but a bit risky for Switzerland. However, they had contacts with the country of Liechtenstein was interested in operating a lottery. However, having only 39,000 inhabitants, there was an obvious problem.

“We made the very first online gambling destination—with a payment solution!”
– David Vanrenen, Founder of International Lottery in Liechtenstein Foundation (ILLF)

A year later, the tickets went on sale and the first draw was held, fittingly in a bar.

The first online gambling compliance certification

Online gambling thrives on player trust. Players must feel confident that the games they participate in are both fair and secure. The technical complexity of such platforms, however, is beyond the comprehension of most people. To address this, game providers turn to external experts for certification, ensuring compliance with the regulations of the jurisdictions in which they operate.

“The fear of the unknown was stopping me from joining that project, but my researcher’s mind was pushing me to do it and take it as a challenge.”
– Dr Aftab Rizvi, Founder and CEO of Gaming Associates

One such pioneer in compliance is Dr Aftab Rizvi, founder and CEO of Gaming Associates. Aftab was responsible for certifying the world’s first government-regulated online casino, Lasseters Online, in 1999.

In 1999, the Northern Territory government in Australia passed legislation to legalise online gambling, and Lasseters, an iconic hotel and casino in Alice Springs, was the first to apply for a licence. However, the public was deeply sceptical of the fairness and security of online gambling, and the government faced significant political pressure.

The task was to certify that Lasseters’ online gaming system was secure and fair. The primary concern was not the random number generator (RNG) itself—this had been well-tested in land-based casinos—but rather what happened to the random numbers as they passed through the complex layers of software. Furthermore, the security of the system was a major issue. The internet, still in its infancy, was vulnerable to a host of threats, including “Man in the Middle” attacks, where hackers could intercept and manipulate data between the player and the casino.

Aftab was engaged to solve these problems. He meticulously analysed every aspect of Lasseters’ system, checking lines of code and investigating the RNG methods. To protect the gaming traffic between the player and server, the Blowfish encryption algorithm was implemented, offering both speed and strong encryption.

Armed with his expertise, Aftab founded Gaming Associates, which grew to become a leader in online gambling compliance and certification. Gaming Associates specialises in independent auditing, regulatory compliance, and security testing, providing critical oversight for online gambling systems. The company’s influence has been vast, with its standards being applied in nearly all global gambling jurisdictions. Aftab has championed fairness, security, and transparency.

To explore the complete article featured in these excerpts, check out Issue 30 of SiGMA Magazine, where you can uncover not only the rich history of online gaming but also gain access to a wealth of insightful news and features. This issue showcases contributions from esteemed individuals and influential figures in the industry, offering a comprehensive look at the exciting developments and trends shaping the gaming landscape today.