Caribbean Stud poker is a casino table game with rules similar to five-card stud poker. However, unlike standard poker games, Caribbean stud is played against the house rather than against other players. There is no bluffing or other deception. Caribbean Stud Poker is a registered trademark owned by SHFL entertainment, Inc., formerly Shuffle Master, Inc.
As a result of the popularity of poker, casinos created a house banked game known as Caribbean Stud Poker in order to lure poker fans to play more table games. The birth of the game is not well referenced, which is unusual for a relatively new game. Gambling expert David Sklansky has laid claim to formulating the game on a well-known poker forum, positing that he invented the game in 1982 using the name “Casino Poker”. When he developed the game the rules had some differences like, the dealer having two hole cards revealed instead of only one hole card revealed as in Caribbean Stud today. Likewise there was no progressive jackpot in the game he allegedly founded. Sklansky was unable to patent "Casino Poker" due to patent laws, according to the story. A few years afterwards he was approached by a poker player who brought the game to Aruba and had it patented. The poker player and a casino owner changed the rules slightly to form what we experience nowadays as Caribbean Stud Poker.
Another story details that many people claim they played the game under a different name on a cruise ship going to Aruba, before it was known as Caribbean Stud. The proprietor of the now 'Excelsior Casino' is believed to have bought the game after it was discovered on the cruise ship. The casino at the time was known as 'The King International'. This new game has developed a tremendous interest from tourists in its short history. Fanatics of the game flock to Aruba yearly to play some Caribbean Stud at its home.
The true story of how the game as it is played today came into being goes back to 1987 when a gambler named James Suttle learned the game from a down on his luck poker player while playing Texas Holdem at Binion's Horseshoe on Fremont Street in Downtown Las Vegas. The Player offered to teach Suttle the game if he would lend him $5,000.00. (James Suttle denies this.) James, who was a friend of casino owner and game developer Danny Jones, gave the man the loan because he knew that he could sell the game to Jones for a hefty profit. Jones owned the King International Casino in Aruba which later became the Grand Holiday Casino. The casino was located in the Holiday Inn on Palm Beach in Aruba which was a favorite layover for many cruise lines. Danny began to market the game with minimal success to other casinos and cruise ships under the company D&D Gaming Patents. It wasn't until computer software engineer Michael Titus told Jones that his game needed a linked progressive Jackpot that the game took off. Titus was playing Poker with Jones at the Horseshoe when during a casual conversation about the game (including discussion about the games strengths and weaknesses) they determined that the game was too strong for the house and players needed an enticement to play in spite of the games favor for the house. It has been a long-standing tradition in the gaming industry to add large or progressive jackpots to games that offer weaker returns to the player. The advantage of a progressive jackpot is that it almost always pays for itself through player contributions. In slot machine play this is easily accomplished as the gaming machine is such a key element to the game, on table games this had never been done in a real time environment. Poker games have had progressive "Bad Beat" jackpots for a long time, but these were calculated on a daily or weekly basis from a jackpot rake at a predetermined period of time. Jones and Titus roughed out the method by which the new game would be implemented and created the first live progressive linked jackpot on a table game which led to the game's rapid growth and popularity.