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How Do Online Casinos Work?



The popularity of the Internet in the mid-90s has also paved a way for Internet gambling to rise to prominence. With the advancements of technology, Online Casinos (aka Virtual Casinos) grew at a rapid rate and are expected to reach $100 billion by 2026, according to a study featured in Global News Wire.

While many people have a good grasp of what the online casino industry does and is, few understand how it works. There are tons of things to think about when bringing traditional gameplay to audiences in this modern format; not only do tax authorities and responsible gambling advocates have to ensure game fairness to their customers, but they also need to implement player protection measures.

So, how do online casinos work? Let’s find out.

Are Online Casinos Legal?

Online casinos and legalities have always gone hand-in-hand almost since the very first virtual casino appeared, and for many countries, it has been a constant battle between legislators and gambling corporations to try and convince the courts to side with their favor.

With this, the regulations of the online gambling industry will apply differently depending on what country you are in. In the United States, for instance, each state has its own specific online gambling laws.

According to US Bets, only New Jersey, Pennsylvania, West Virginia, and Michigan allowed online gambling among the 50 states compared to Europe and the UK where citizens have legal access to virtual casinos. For that reason, players are advised to first check what the legislation in their jurisdiction is before proceeding with opening their accounts at their preferred virtual casinos.

How Do Online Casinos Work?

While every online casino and licensing jurisdiction has its own measures and rules in place, the majority of online gambling use the following principle in administering their services to their players:

  • Players create their online casino account and deposits money or funds into that account
  • Players will select game(s) they wish to play and decide how much to wager on each game
  • If the player loses his/her funds, the online casino retains them–if a player wins, and ends up in profit, he/she can withdraw the funds back into the bank account (or other payment processors)

What Games are Provided in an Online Casino?

As mentioned by Casino Sites, virtual casino games, including the software behind them, are the scope of online gambling, and the focal point of casino games available to play in the modern times is greater than ever before. While by no means a broad list, the following are the main game types offered by virtual casinos today:

Casino Table Games

Possibly the most ‘classic’ form of casino games, table games include most game-types generally linked to casinos, including Baccarat, Roulette, Casino Hold’em, 3 Card Poker, and Punto Banco. Many of these games have multiple variations, so that users can play different versions. 

Live Casino Games/ Live Dealer

The newest form of virtual casino entertainment, live casino games are extremely unique, in a way that it allows users to play their favorite Casino Table Games from their laptop or computer, but rather than looking at a virtual table screen, they play against a real person streamed directly to their mobile device or computer through a live video link.

This form of online casino game is generally limited to just Blackjack, Roulette, Casino Hold’em, Baccarat, and 3 Card Poker, although other variations also do exist.

5-Reel Slot Games

5-reel slot games, most commonly called “Video Slots”, are one of the biggest attraction points for users gambling online today, and thousands of various 5-reel slot games are now available. Contrasting with traditional ‘Vegas-Style’ slots, video slots use enhanced themes and graphics, as well as unique bonus rounds, and a more enjoyable overall experience.

3-Reel Slot Games

Traditional slots, typically without extravagant storylines or bonus rounds, 3-reel slot games do still exist in most virtual casinos. However, the selection offered is usually less when compared against the 5-reel slot games with many casinos offering only two or three titles due to a lack of player interest. 


Virtual blackjack is not different from physical casino blackjack. There are various types of blackjack, and you might find more online than in an actual casino, but for the most part, the play of the games as well as the rules remain the same.

One key difference with online blackjack is that players aren’t able to count cards. Hence, the cards are shuffled after each round using an RNG to ensure that it is operating fairly and correctly. This means a player cannot necessarily count the burn cards when determining whether to increase your bet or not.

How to Play an Online Casino?

Web-based Casinos

Web-based casinos are the most popular type of virtual casino and are available on different websites. This type of online casino allows players or users to play casino games like Bingo, Baccarat, Poker, Blackjack, and many more.

Users do not need to download any software to access the game. They are only required to have an internet connection to play the animations, sounds, and images of the games.

Download-Based Online Casino

As the name implies, download-based requires users to download software to play the games. The software instructs the gambler directly to a browser with support.

Unlike web-based casinos, download-based casinos run faster. This is because it has all the animations and sound programs in one location. The only downside with this type of online casino is that the download may risk your computer or laptop with malware and spyware.

Mobile Casinos

With the advancement of mobile technology, smartphones, and tablet devices, in particular, mobile casinos have developed significantly popular over the recent years and are now more accessible than ever before. Due to the popularity of iOS (Apple) products, for instance, most mobile casino games are established using HTML and HTML 5, as iOS devices cannot run Java-based or flash applications.

Live Based Casinos

Live-based is a top-notch type of online casino. It enables players to interact with real-life dealers/users as if they were in physical casinos or in real-time. They can play Baccarat, Poker, or any other game they are interested in.

With such options, users are at liberty to pick what suits them best and have as much fun as they want. Online casinos offer various games, and it’s up to you to decide which one you love most.

What is RNG?

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

However, conditions for gambling in online casinos are based on randomly determining the results of a game without the use of human involvement and special devices. That’s why RNG or the Random Number Generator was created.

Regardless of the player’s actions, RNG is a program that is responsible for the prize combinations. It guarantees the absence of any pattern in the sequence of issued outcomes. The work of modern roulette, video slots, video poker, etc. online is based on this principle.

Final Reminder

Accessing virtual or online casinos is indeed convenient.  It can be as easy as taking out your phone or laptop from your bag and playing online slots. 

Although some might be put off by just going to nearby local slots, online gambling seems more private and simpler. Needless to say, the danger is that gambling, whether in-person or online, can be addictive. Therefore, it is crucial to ensure that you’re gambling or using online casino games responsibly at all times.