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Dice and dice games date back to the Middle Eastern Crusades, but modern craps is approximately one hundred years old. Current craps developed from the ancient English game referred to as Hazard. No one absolutely knows the origin of the game, but Hazard is believed to have been invented by the Englishman, Sir William of Tyre, sometime in the twelfth century. It is supposed that Sir William's knights bet on Hazard during a siege on the castle Hazarth in 1125 AD. The name Hazard was acquired from the fortress's name.

Early French settlers imported the game Hazard to Acadia. In the 1700s, when driven away by the English, the French moved south and discovered refuge in the south of Louisiana where they a while later became known as Cajuns. When they were driven out of Acadia, they took their favorite game, Hazard, with them. The Cajuns modernized the game and made it more mathematically fair. It's believed that the Cajuns adjusted the title to craps, which is derived from the term for the bad luck throw of two in the game of Hazard, known as "crabs."

From Louisiana, the game extended to the Mississippi riverboats and all over the nation. A few think the dice builder John H. Winn as the father of current craps. In the early 1900s, Winn created the modern craps layout. He added the Do not Pass line so players can bet on the dice to lose. Afterwords, he established the spots for Place bets and added the Big 6, Big 8, and Hardways.