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Slots or the term “slot machine” is a simplification of the phrase “coin-in-the-slot machine,” which was used to describe some of the earliest mechanical gaming devices.

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In the 1870s, these took the form of mechanical “punch boards” that allowed players to win prizes, such as candy, gum, cigars or credits for free play.

Today, the “coin slots” have been replaced by electronic mechanisms for insertion of paper currency, and the “prizes” include cars, comps and cash in the millions. It has been estimated that slot machines and their younger cousin, video poker machines, are responsible for about 70~80 percent of the gambling profits earned by casinos annually.

The opportunity to win big with a small bankroll, along with highly entertaining formats, has made slot play the most popular form of gambling worldwide.

At the Excalibur Casino on the Las Vegas Strip in March 2003, a young man invested $3 to play the Megabucks slot machine. In less than a minute, he won a jackpot worth $38.7 million—the biggest payout in history at that time.

Slots – Humble Beginnings

Towards the end of the 19th century, a number of mechanical gadgets were invented to test players’ skill and luck.

These included pistol-like devices used to shoot coins into slots, punching bags that rewarded powerful blows, and a Brooklyn-manufactured coin-based poker-playing machine.

The latter randomly flipped cards in five windows, and players were paid winnings according to the strength of hands dealt.

In the late 1890s, three German mechanics working in a San Francisco electrical shop—Theodore Holtz, Gustav Schultze, and Charles Fey—developed a new wheel-mechanism for coin-in-the-slot play.

They called their original version “Horseshoes,” and it paid out two nickels (10¢) whenever one of ten horseshoes came up on a line out of 25 possible symbols.

Fey later fitted the device with three wheels showing card faces and named it the “Card Bell.” Within a year, the invention evolved into the “Liberty Bell,” by making bells and horseshoes the top combinations.

At the time of the Great Earthquake in 1906, San Francisco was earning six figures yearly from taxes on revenues derived from some 3,200 installed “slot machines.” When slots were deemed illegal by the city in 1909, they were already a mainstay of casinos across the United States.

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To get around anti-gambling laws, slot makers changed the card symbols on the reels to fruit—oranges, plums, cherries and lemons—ostensibly representing the flavours of chewing gum that could be won when winning combinations came up.

These machines reached England in the early 20th century, and became known as “fruit machines,” a designation that’s remained common to this day.

During the Prohibition Era in America, organised crime added slot machines to “speakeasies”—private clubs where bootleg alcohol was sold. Others saw slot play as a way of stimulating a depressed economy, and one state, Nevada, went so far as to legalize gambling, including slots, in March 1931.

It has been estimated that by the end of that year, New York City alone had at least 25,000 illegal slots in operation, earning more than $25 million a year.

Types of Slots

Charles Fey’s invention has endured for more than a century, and even though it has been modified in countless ways over the years, the basics are still the same. The cost of playing can be as little as a single penny.

Randomly generated symbols in winning combinations yield payouts at fixed rates. And because payouts are set at lower than true odds, the house or slot owner is assured of profits over the long term.

When you play slots in a casino today, your first decision is what type of machine to play. Although there may appears to be hundreds of options, there are really just five basic types from which to choose.

Three-Reel Slot Machines – These are the oldest and still among the most popular slots found in casinos. The “reels” spin independent of one another, and when they stop, the symbols on their faces line up in the “window” of the machine.

A horizontal line across the middle the window is called the “payline,” and when certain combinations of symbols align there, a predetermined “payout” is made. The reels are set in motion by pulling down a lever or “arm,” which is mounted on the right side of the machine, or by pressing a “spin” button on the slot’s face.

The arm is what earned these slots their nickname as “one-armed bandits.” If you prefer simplicity and low risk, these are the slots for you.

Five-Reel Slot Machines – Like the three-reel version, these machines feature an arm, a window and a payline, but rather than having three reels in a row, there are five.

The addition of the extra two reels makes the highest winning combination—five top symbols in a row—harder to achieve, but it also allows the payouts to be larger. If you seek big payouts, you may want to choose five-reel slots.

Multi-Payline Slot Machines – These include both three-reel and five-reel versions, but instead of having a single horizontal payline, these include the option to purchase additional paylines. The simplest of these include horizontal paylines above and below the center payline. Playing three coins will enable payouts on all three.

More elaborate configurations allow five, seven, or nine paylines to be purchased, and the very newest machine offer dozens of payline options. Of course, more coins must be played to access these, so although winning becomes more likely, the cost increases considerably.

Multi-Spin Slot Machines – Unlike the other versions, these slots allow player to spin the reels more than once on a single play. After the reels spin the first time, the player can “lock” or “hold” one or more of them in position.

Then a “respin” button is pressed or the arm is pulled again, and the remaining reels that are not held spin once more. Payouts on these multi-spin slots tend to be lower but more frequent than they are on traditional three- and five-reel machines.

Progressive Slot Machines – These are the “dream makers” of casinos, where the highest payouts of all can be found. Progressive slots can be either individual machines or a group of machines.

They may look exactly like the other four types of slots, but the big difference is the top prize, or “jackpot,” which gets progressively larger until someone wins it. The current amount of the jackpot is displayed in an ever-changing marquee above the machine.

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To fund the jackpot, a tiny percentage of each bet made on the game is set aside. Over time, these small amounts can easily add up to six figures or higher. To win the progressive, the player must bet the maximum allowed and get the exact combination of symbols called for.

The odds are strongly against winning, but the rewards are so great that many players are happy to accept the high risk involved.

Technology Leads the Way

Many of the earliest slot machine manufacturers did not survive their early success.

Mills Novelty Company, for example, did well with its “Admiral Dewey” slot, thanks to the wave of patriotism that followed the Spanish-American War (1898), but it could not compete with innovations brought about by high-tech competitors in the mid-20th century and left the slot business in the 1950s.

Bally Gaming, by contrast, started out making pinball machines in the Great Depression. It was founded in 1931 by Raymond Maloney of Chicago and took its name from its most popular product—The Ballyhoo—which offered seven plays for just a penny.

The company ventured into pool tables, amusement rides, vending machines and coffee brewing equipment before Maloney died in 1957. That’s when the new owners turned their attention to slots.

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By the late 1960s, Bally slots were all the rage. Their initial hit was called “Money Honey,” and it was produced by the company’s Lion Manufacturing subsidiary. Money Honey was innovative in that it combined mechanical play and electric payout techniques.

When a player hit a jackpot, the sound the machine emitted would overwhelm the casino floor—a marketing gimmick much copied thereafter.

The Bally machines also incorporated the first computerized value='0'>
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