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Dice and dice games date all the way back to the Crusades, but modern craps is only about 100 years old. Current craps developed from the ancient English game called Hazard. No one absolutely knows the origin of the game, but Hazard is believed to have been created by the Englishman, Sir William of Tyre, in the 12th century. It is presumed that Sir William's knights gambled on Hazard through a siege on the citadel Hazarth in 1125 AD. The name Hazard was derived from the fortress's name.

Early French settlers imported the game Hazard to Nova Scotia. In the 1700s, when banished by the English, the French headed down south and settled 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, along. The Cajuns simplified the game and made it more mathematically fair. It is said that the Cajuns adjusted the name to craps, which was derived from the term for the losing toss of 2 in the game of Hazard, referred to as "crabs."

From Louisiana, the game moved to the Mississippi river boats and across the nation. Most consider the dice builder John H. Winn as the creator of modern craps. In the early 1900s, Winn built the current craps setup. He created the Do not Pass line so players can wager on the dice to lose. Afterwords, he invented the spots for Place wagers and put in place the Big 6, Big 8, and Hardways.