Pocket billiards is generally agreed to have morphed from an outdoor game played on grass, with mallets very similar to croquet. It was moved indoors, and rails and pockets added as the game evolved. Perhaps the single most important revolution to the game was the addition of leather tips, which added a great deal of control to the "strike".
One key point is that I have described pocket billiards, which is...billiards with pockets. Billiards refers to any game where one has balls that strike each other.
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Billiards is generally accepted as originating in Italy as a modified version of trucco. However, the first record of the billiard table is in France. It is argued and has not yet been found whether the indoor game of billiards was first played in Italy or France. The evolution of the equipment, as we know it, definitely was the result of a Frenchman, Francois Mignaud, but he played in many European countries as this was developed.
The game of billiards was being played in both France and Italy in the very early 1400's. There is no record to indicate which had the first indoor pocket billiards tables.