Pegasus Spiele was founded in 1993 by its current CEOs, Karsten Esser and Andreas Finkernagel, as a brick-and-mortar store in downtown Friedberg, Germany and has long since established itself not only as a distributor but also as a publisher of successful board games.

The numerous awards from the Spiel des Jahres (Game of the Year) jury since 2009 also reflect this. In 2014, Pegasus Spiele became the first publisher to win both the Game of the Year (Camel Up) and the Connoisseur Game of the Year (Istanbul) in a single year. In 2015, the new children's game series was successfully launched, and in 2016, a children's game from Pegasus Spiele (Mmm!) was nominated for the Children's Game of the Year award for the first time. In 2017, Pegasus Spiele won the Game of the Year award with Kingdomino, and again in 2018 with Azul.

With Dragomino winning the Children’s Game of the Year award, Pegasus Spiele also won the Children’s Game of the Year award for the first time in 2021 and, in the same year, celebrated MicroMacro: Crime City (in collaboration with Edition Spielwiese) being named Game of the Year 2021. In 2021, Pegasus Spiele expanded and established a subsidiary in the United States, Pegasus Spiele North America.

In 2022, the Connoisseur Game of the Year award once again made its way to Friedberg with Living Forest, and in the anniversary year of 2023, Dorfromantik – The Board Game won the Game of the Year award. In 2025, Pegasus Spiele continued its run of success when Bomb Busters was named Game of the Year.