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Dice and dice games date back to the Middle Eastern Crusades, but modern craps is only about 100 years old. Current craps formed from the 12th Century Anglo game called Hazard. Nobody knows for sure the ancestry of the game, although Hazard is said to have been made up by the Englishman, Sir William of Tyre, sometime in the 12th century. It is presumed that Sir William's knights gambled on Hazard during a siege on the fortress Hazarth in 1125 AD. The title Hazard was derived from the fortress's name.

Early French settlers imported the game Hazard to Acadia. In the 1700s, when expelled by the English, the French headed down south and settled in the south of Louisiana where they eventually became known as Cajuns. When they fled Acadia, they brought their preferred game, Hazard, with them. The Cajuns streamlined the game and made it fair mathematically. It is said that the Cajuns adjusted the title to craps, which was acquired from the name of the losing throw of two in the game of Hazard, recognized as "crabs."

From Louisiana, the game moved to the Mississippi riverboats and across the country. A few acknowledge the dice builder John H. Winn as the father of modern craps. In the early 1900s, Winn developed the current craps setup. He appended the Do not Pass line so gamblers could wager on the dice to lose. At another time, he developed the spaces for Place bets and put in place the Big 6, Big 8, and Hardways.