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Dice and dice games date back to the Crusades, but current craps is only about a century old. Current craps evolved from the ancient Anglo game referred to as Hazard. No one absolutely knows the beginnings of the game, although Hazard is believed to have been made up by the Anglo, Sir William of Tyre, in the 12th century. It is supposed that Sir William's soldiers wagered on Hazard through a siege on the fortress Hazarth in 1125 AD. The title Hazard was gotten from the castle's name.

Early French settlers imported the game Hazard to Acadia. In the 1700s, when driven away by the English, the French moved down south and found sanctuary in southern Louisiana where they eventually became known as Cajuns. When they departed Acadia, they took their preferred game, Hazard, with them. The Cajuns modernized the game and made it mathematically fair. It is said that the Cajuns adjusted the title to craps, which is derived from the name of the non-winning toss of 2 in the game of Hazard, recognized as "crabs."

From Louisiana, the game extended to the Mississippi riverboats and across the country. Many consider the dice maker John H. Winn as the father of modern craps. In the early 1900s, Winn built the current craps layout. He added the Do not Pass line so gamblers could wager on the dice to lose. At another time, he established the spaces for Place bets and added the Big 6, Big 8, and Hardways.