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Dice and dice games goes back to the Middle Eastern Crusades, but modern craps is only about one hundred years old. Current craps developed from the ancient Anglo game referred to as Hazard. Nobody knows for certain the origin of the game, although Hazard is said to have been discovered by the Englishman, Sir William of Tyre, around the 12th century. It is theorized that Sir William's horsemen gambled on Hazard amid a siege on the fortification Hazarth in 1125 AD. The name Hazard was gotten from the fortification's name.

Early French colonizers imported the game Hazard to Canada. In the 18th century, when driven away by the British, the French relocated down south and settled in the south of Louisiana where they a while later became known as Cajuns. When they departed Acadia, they took their favored game, Hazard, along. The Cajuns streamlined the game and made it fair mathematically. It is believed that the Cajuns changed the name to craps, which is derived from the term for the non-winning toss of two in the game of Hazard, recognized as "crabs."

From Louisiana, the game extended to the Mississippi river boats and across the nation. Many consider the dice maker John H. Winn as the founder of modern craps. In 1907, Winn created the modern craps layout. He appended the Don't Pass line so players can wager on the dice to lose. Later, he invented the spots for Place wagers and added the Big 6, Big 8, and Hardways.