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Games that use dice and the dice themselves goes back to the Crusades, but current craps is approximately a century old. Modern craps formed from the ancient Anglo game called Hazard. Nobody absolutely knows the origin of the game, but Hazard is believed to have been created by the Anglo, Sir William of Tyre, sometime in the 12th century. It is theorized that Sir William's soldiers gambled on Hazard during a siege on the castle Hazarth in 1125 AD. The name Hazard was derived from the citadel's name.

Early French settlers imported the game Hazard to Nova Scotia. In the 18th century, when exiled by the English, the French relocated down south and settled in the south of Louisiana where they eventually became known as Cajuns. When they were driven out of Acadia, they brought their preferred game, Hazard, with them. The Cajuns simplified the game and made it fair mathematically. It is believed that the Cajuns adjusted the title to craps, which was acquired from the term for the losing throw of two in the game of Hazard, referred to as "crabs."

From Louisiana, the game migrated to the Mississippi scows and all over the country. A great many consider the dice builder John H. Winn as the creator of modern craps. In the early 1900s, Winn created the modern craps setup. He created the Do not Pass line so gamblers can bet on the dice to not win. Later, he invented the boxes for Place bets and added the Big 6, Big 8, and Hardways.