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Dice and dice games goes back to the Middle Eastern Crusades, but current craps is approximately 100 years old. Modern craps developed from the old English game called Hazard. No one knows for certain the ancestry of the game, but Hazard is believed to have been discovered by the Anglo, Sir William of Tyre, in the 12th century. It is believed that Sir William's soldiers played Hazard amid a blockade on the citadel Hazarth in 1125 AD. The name Hazard was acquired from the castle's name.

Early French colonists imported the game Hazard to Canada. In the 18th century, when displaced by the English, the French moved down south and discovered sanctuary in the south of Louisiana where they eventually became Cajuns. When they were driven out of Acadia, they brought their favored game, Hazard, with them. The Cajuns simplified the game and made it more mathematically fair. It is said that the Cajuns adjusted the title to craps, which was derived from the name of the losing throw of 2 in the game of Hazard, referred to as "crabs."

From Louisiana, the game extended to the Mississippi riverboats and across the nation. A few think the dice builder John H. Winn as the creator of modern craps. In 1907, Winn assembled the current craps setup. He put in place the Don't Pass line so gamblers could bet on the dice to not win. Afterwords, he developed the spaces for Place wagers and added the Big 6, Big 8, and Hardways.