The functional component of the Magic 8 Ball was invented by Albert C. Carter,[1] who was inspired by a spirit writing device used by his mother, a Cincinnati clairvoyant.

In 1944, Carter filed for a patent[2] for the cylindrical device, assigning it in 1946 to Bookman, Levinson and another partner in what came to be Alabe Crafts, Inc., combining the founder's names, Albert and Abe.

Though not successful, the revamped product caught the attention of Chicago's Brunswick Billiards, which in 1950 commissioned Alabe Crafts to make a version in the form of a traditional black-and-white 8 ball,[3] which was possibly inspired by a gag[clarification needed] in the 1940 Three Stooges short film, You Nazty Spy!.

Inside the ball, a cylindrical reservoir contains a white plastic 20-sided regular icosahedron die floating in approximately 100 ml (3+1⁄2 US fl oz) of alcohol dyed dark blue.

While the Magic 8 Ball has undergone very few changes, an addition in 1975 by new owners, Ideal Toy Company, fixed the bubble problem.

The 20 possible Magic 8 Ball answers were designed by Dr. Lucien Cohen, a psychology professor at the University of Cincinnati.