The first jumping castle or inflatable castle was made around 1959, in america by a gentleman named John Scurlock. It was made by accident whilst trying to develop an inflatable tennis court cover. He noticed that his employees liked to jump up and down on the cover, which led him to making jumping domes, tents and signs. This same man invented the safety air cushion that you may remember seeing in movies, when people jump off buildings. These were used by fire and police departments in the US but never really made much of an entrance to the Australian Market.
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