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Initially, all gambling took place in a physical location. However, it was a bit problematic for most people who wanted to gamble often. The first step towards the development of online casinos was the development of gambling software. Soon afterward, the software was placed on a site. At first, it was quite slow. Thus, most people still preferred to visit physical casinos. However, with time, the internet speed rose, and the cost of setting up a site became cheap. It led to a boom in the number of websites offering the service.

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Despite this, the games were too basic. To get over this hurdle companies began contracting third parties to develop software for their site. Sites became cheaper to operate and faster to work with. From less than twenty, there are now hundreds of online casinos each offering unique games. They are also much safer to transact money than previous sites. The effort to make gambling even more efficient continues up to this day. Besides that, they offer higher payouts than land based casinos. The reason is partly that they have lower operating costs.

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