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Online casinos, also known as virtual casinos or Internet casinos, are online versions of traditional ('brick and mortar') casinos. Online casinos enable gamblers to play and wager on casino games through the Internet. It is a prolific form of online gambling.

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Online casinos generally offer odds and payback percentages that are a bit higher than land-based casinos.^{[citation needed]} Some online casinos claim higher payback percentages for slot machine games, and some publish payout percentage audits on their websites. Assuming that the online casino is using an appropriately programmed random number generator, table games like blackjack have an established house edge. The payout percentage for these games are established by the rules of the game.

Many online casinos rent or buy their software from companies like CryptoLogic Inc (now Amaya), International Game Technology, Microgaming, Playtech, Golden Race and Realtime Gaming.

Types

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Online casinos are broadly divided into two categories based on the software they use: web-based and download-only casinos. Traditionally, online casinos would include only one of the two platforms. However, with advanced technological changes, an online casino can now accommodate both.

Web-based

Web-based online casinos (also known as flash or no-download casinos) are websites where users may play casino games without downloading software to their local computer. Games are mainly represented in the browser plugins Macromedia Flash, Macromedia Shockwave, or Java and require browser support for these plugins. Besides the plugins and browser, a stable internet connection is required to have a seamless gaming experience as all graphics, sounds and animations are loaded through the web via the plugin. Some online casinos also allow gameplay through a HTML interface.

Apple devices such as iPod, iPad and iPhone cannot play Flash games as the technology is not supported. To access the no download casinos using the iOS platform, you'll have to download browsers such as Google Chrome, Firefox or Opera Mini.

Download-based

Download-based online casinos require the download of the software client in order to play and wager on the casino games offered. The online casino software connects to the casino service provider and handles contact without browser support. Download-based online casinos generally run faster than web-based online casinos since the graphics and sound programs are cached by the software client, rather than having to be loaded from the Internet. On the other hand, the initial download and installation of the casino's software takes time. As with any download from the Internet, the risk of the program containing malware exists, which makes it less popular among sceptical casino players.

Games

Virtual

Also known as software-based online casino games, the outcome of these games are determined using a pseudorandom number generator (PRNG) software. This software ensures that every deal of the card, the outcome of a dice throw, or the results produced by the spinning of a slot machine or roulette wheel is totally random and unpredictable. PRNGs use a set of mathematical instructions known as an algorithm to generate a long stream of numbers that give the impression of true randomness. While this is not the same as true random number generation (computers are incapable of this without an external input source), it provides results that satisfy all but the most stringent requirements for true randomness.

When implemented correctly, a PRNG algorithm such as the Mersenne Twister will ensure that the games are both fair and unpredictable. However, usually, the player has to trust that the software has not been rigged to increase the house edge, as its inner workings are invisible to the user. Properly regulated online casinos are audited externally by independent regulators to ensure that their win percentages are in line with the stated odds, and this can provide a degree of assurance to the player that the games are fair, assuming the player trusts the regulator.

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Live dealer

Live dealer casino games are the complete opposite of the software-based games. Instead of depending on a software to determine the outcome of the roulette spin, dice throw or deal of a card, these games depend on real-time results. This is possible as the games are streamed in real-time from a land-based casino or a studio recreated to mimick a land-based casino.

To ensure that players have an easy time playing these games and that the land-based environment is fully recreated, software developers include innovative features such as the chat feature. This enables the player to type your message to the dealer and they can respond back verbally. The live chat feature can also be used to communicate with other players seated at the table following a set of rules laid down by the casino.

The results of the physical transactions by the dealer, such as the outcome of the roulette wheel spin or the dealing of cards, are translated into data that can be utilized by the software by means of optical character recognition (OCR) technology. This enables the player to interact with the game in much the same way as they would with a virtual casino game, except for the fact that the results are determined by real-life actions

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