History of Slot Machines
Not everyone knows that the term slot machine is nothing less than an abbreviation for nickel-in-the-slot machine.
Although it was originally a word also used for vending machines, in the 20th century, the term almost exclusively referred to gaming devices.
The first coin-operated gambling machines widespread in the United States date back to the 1880s.
The mechanism often consisted of small toy horses racing after a coin was introduced into the device.
The prizes back then were drinks or cigars, and very rarely were they given out as trade cheques, i.e. metal tokens, which could be exchanged for drinks.
From the first gambling machines to the influence of the clergy
The slot machine in the modern sense was invented as most people know by Bavarian Charles August Fey.
The man was a mechanic in San Francisco, USA at the time and built the first coin-operated gaming machine in 1894.
In 1895, Fey built the 4-11-44, a device that was so successful that he opened a factory to mass-produce them.
The name recalled a phrase often used in popular music in those years, as a reference to numbers favored by African Americans for betting at Lotteries.
Fey later produced the Card Bell: this was the first three-reel machine to offer automatic cash payouts.
The operation of the Card Bell was simple: a lever operated the reels and the playing cards lined up to form Poker hands.
The following year (1899) Fey built the Liberty Bell, which used horseshoes and bells, as well as playing card suits on the reels.
In this mechanism, the highest win came from the alignment of three bells.
Despite its great success, the San Francisco earthquake of 1906 destroyed almost all of the 100 Liberty Bell machines built by Fey and only four survived.
This new machine was very popular with San Francisco saloon customers and so replicas quickly sprang up by Fey's competitors, as in the case of the Mills Novelty Company of Chicago.
However, general moralistic attitudes, the impact of the clergy and new legislation created strong opposition to these games, which were banned in 1909.
At that point in time, more than 3,300 machines existed throughout San Francisco.
With the intention of circumventing the law, Fey and other manufacturers created gambling machines in which the purchase and payment was probably made with drinks and cigars, secretly across the bar counter.
The fruit machines boom and the invention of the Jackpot
Later, most of the manufacturers moved elsewhere, mainly to Chicago.
It was the Industry Novelty Company that used the ubiquitous fruit symbols on the reels for the first time in 1909.
Again, to circumvent the law, the company called the machines it produced “chewing gum machines”.
To make things more believable, the signs of poker card suits on the reels were replaced by fruit symbols to suggest various flavors of chewing gum and indeed, some slot machines really did dispense gum.
Later, the Mills Novelty Company also added the icon of a packet of chewing gum (later stylized as the famous BAR symbol) to the reels.
The Mills Novelty Company also had the idea of inventing the “Jackpot” concept.
In 1916, certain combinations of symbols on the reels were used to win all the coins stored inside the machine.
The 1920s, the Great Depression and World War II
In the 1920s, these games continued their rise in popularity, especially in tourist areas.
And this trend continued through the years of the Great Depression and into the 1930s.
However, there was an awareness that wagering machines were often controlled by organized crime.
Therefore, increasingly stringent legislation was established that effectively restricted their sale, transportation and use, except in private clubs.
But in the post-war period, as governments were generally attracted by the prospect of tax revenue, these machines spread all over the world.
For example, in 1988 slot machines were legalized in French casinos, breaking a 50-year ban.
In the 1950s, electromechanically structured machines allowed for various innovative payout schemes in the form of 3- and 5-coin Multipliers.
With payouts being paid out in proportion to the number of coins inserted by the player, before the lever was operated.
The 1970s Video Slot Machines and Super Jackpots
During 1975, video slot machineries were introduced in Las Vegas.
These were devices that could simulate the reels on a monitor.
Initially they were a modest success because for the bettors, the action of pulling the lever; hearing the sound of the reels aligning and the jingle of the coins cascading, were essential to the entertainment.
In 1986, electronic systems were introduced that could link numerous betting machines located in different places, allowing a fraction of each coin inserted to contribute to a shared “super Jackpot”.
The latter could indeed reach a high size before being won.
In fact, in 2003, for example, a slot machine in Las Vegas gave away a Jackpot of almost $40 million.
Modern slot machineries
Modern machines have very high possibilities and can be set to any payout frequency.
The house advantage of these games varies and even today these games are the biggest generator of casino profits.
Casino gaming laws were relaxed at the end of the 20th century in order to allow for legality on Native American reservations and also to increase revenue in many areas of the United States.
During this period, the number of electronic gaming machines - including video poker - grew significantly.
Consider that by the end of the first decade of the 21st century, 830,000 electronic machines were active in the United States.
The profit generated rose from 40% of total casino revenue (1970) to about 70% (2010).
Also, at the beginning of the 21st century, there was much concern among casino operators, as they feared that the rise of online casinos would overshadow the success of classic gambling machines.
However, competition from the online industry was interspersed with the creation of the Unlawful Internet Gambling Enforcement Act of 2006.
This measure effectively banned American banks and financial institutions from doing business with online gaming companies.
Currently, we can say that the digital gaming sector - despite its strong rise - is still in balance with the classical slots sector that continues to have a strong appeal to a large number of players.
