Origin
Okay well our story starts in ancient egypt, when monsters threatened to destroy the world. A great sorceror locked the monsters into stone tablets. With time others {sorcerors and priests} found ways of releasing the monsters, thus the shadow games were born.
Not everyone was able to play the games. Since the monsters had been locked away with magic, they had to be released and controlled by it. The Priest Seto, and Pharoh Yami, rose to be the greatest of all sorcerors, and the greatest of all enemeys.
The Priest, wanting to take over the world, challenged Pharoh to a shadow game, where only one would come out alive. The Priest called out the legendary Blue Eyes White Dragon, a monster that had never before been summoned. In counter attack, Pharoh summoned his ever faithful Dark Magician, a monster that obeyed him alone.
As for the outcome, it was lost in history
Duel Monsters
A man named Maximillion Pegasus wondered into egypt, searching for a way to bring his dead wife back to him. He learned of the shadow games played by the ancient sorcerors, and about the sennen {millenium} items.
The Sennen Eye became a gate of hope to him. By playing the shadow games and locking souls into the "shadow realm" he could one day see his love again.
This thin ray of hope brought him to bring back the ancient game, but in the form of cards not tablets, and no need of being a sorceror to play the game. This game became known as Duel Monsters, and quickly became a favourite game among Americans.
Okay well, that should give you some background info on how the game came to be. I'll write up some more when I get some time.