<1811 KID, to coax or wheedle . . . To amuse a man or divert his attention while another robs him.”— ‘Lexicon Balatronicum: A Dictionary of Buckish Slang’ by Francis Grose>

<1812 “under KID-rig: To kid a person out of any~thing, is to obtain it from him by means of a false pretence.”—‘The Flash Dictionary’ by J. H. Vaux>

<1839 “KIDDING on, to entice one on.”—in W.A. Miles ‘Poverty, Mendicity & Crime,’ H. Brandon, page 163/2>

<1851 “He KIDS them on by promising three times more than the things are worth.”—‘London Labour’ by Mayhew, I. page 473>
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<1888 “The champion KIDDER.”—‘The Sporting Life,’ 15 December, page 3/2>

<1891 “[He] was a beautiful KIDDER and could patter sweet and pretty.”—Scamping Tricks’ by J. Newman, xi. page 88>

<1895 “The prisoner had told him that since he had been in Holloway he had ‘KIDDED’ the doctor into the belief that he was insane, and that he intended to ‘KID’ the judge.”—‘Daily News,’ 27 November, page 2/5>

<1906 “I'll stand for all the private KIDDING you can hand out.”—‘Shorty McCabe’ by S. Ford, xii. page 273>

<1922 “‘Mr Winklethorpe told me I was very good with the wooden clubs,’ she said defiantly. ‘He's a great KIDDER,’ said Ramsden.”—‘The Clicking of Cuthbert’ by Wodehouse, ix. page 223>

<1928 “Really? No KIDDING?”—‘ Lord Peter Views the Body’ by D. L. Sayers, page 287>

<1932 “‘You wouldn't fool us, Gov'nor, would you?’ KIDDED Johnny. Studs thought it wasn't every guy who could Kid with his old man, like Johnny could.”—‘ Young Lonigan’ by J .T. Farrell, iv. page 154>

<1952 “‘I'm a policeman.’ ‘No KIDDING!’”— ‘The Singing Sands’ by J. Tey, xii. page 205>

<1969 “We asked some reclining youths where the Festival was, and they pointed across a vast valley to some tiny lights . . . ‘You're KIDDING!’ . . . We sank to the grass.”—‘New Yorker,’ 30 January, page 18/3>

<1974 Titbits 30 May 22/4, “I have always known I was impotent but KIDDED myself that if I could find the right wife everything would miraculously become O.K.”—‘Tidbits,’ 30 May, page 22/4>

kidding is vulgar for persiflage, raillery, banter

As for background you might try Googling as follows:

words origins kidding

<1906 “On the way to the ring Bugg had whispered ‘Diamond Flush!’ He said that, NO KIDDING . . . “—‘Washington Post,’ 19 August, page 33>

<1906 (advertisement) “When We Say We’re on the go for New Year’s Day . . . NO KIDDING . . . Haffner’s Star Bakery”—‘Fort Wayne Journal Gazette’ (Indiana), 30 December, page 10>

<1907 “‘Last call and NO KIDDING, Sam.’ said the poolroom man.”—‘Anaconda Standard’ (Montana), 1 April, page 2>

<1908 “But say, NO KIDDING, guess Galveston County didn’t name some great diamond material for office.”—‘Galveston Daily News’ (Texas), 30 August, page 8>

<1910 “. . . each has impressed his competitors for place that he is in deadly earnest and NO KIDDING.”—‘Atlanta Constitution’ (Georgia), 27 February, page 4>

<1912 “NO KIDDING, Girls Here’s A Live One: If any of you would like to marry, and would like a young man —a fruit rancher—for a husband, just address a letter to ‘Affectionate Young Man,’ Lodi Sentinel, and you will receive an answer from a young man who wants a wife. Must be aged between 19 and 90. Love and affections main object. NO KIDDING.”— ‘Modesto News’ (California), 19 July, page 6>

<1914 “There's a dead monkey-fish hard by the boat club . . . NO KIDDING!”—‘Letters’ (1969), E. E. Cummings, 27 July, page 9>