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The term slot machine (short for nickel-in-the-slot machine) was originally also used for automatic vending machines but in the 20th 💱 century came to refer almost exclusively to gambling devices. The first coin-operated gambling devices in the United States date to 💱 the 1880s, although they were actually mere novelties—such as two toy horses that would race after a coin was inserted 💱 in the machine—rather than direct gambling machines. Set on a bar in a saloon or similar establishment, such devices attracted 💱 wagering between patrons. With most machines, however, the proprietor paid off winning customers in drinks or cigars or sometimes in 💱 the form of trade checks (specially minted metal tokens) that could be exchanged for refreshments. By 1888 machines that paid 💱 off in coins were in existence. In the first ones, inserted coins fell onto an internal balance scale, where they 💱 might cause it to tip and spill other coins out; among later devices were ones with a circular display and 💱 a spinning indicator that came to rest on or pointed to a number, a colour, or a picture.

The first slot 💱 machines in the modern sense were invented by Bavarian-born American inventor Charles August Fey, at the time a mechanic in 💱 San Francisco, who built his first coin-operated gambling machine in 1894. The following year Fey built the 4-11-44 in his 💱 basement; it proved so successful at a local saloon that he soon quit his job and opened a factory to 💱 produce more units. In 1898 Fey built the Card Bell, the first three-reel slot machine with automatic cash payouts. The 💱 Card Bell had a handle that set the reels in motion when it was pushed down and playing card suitmarks 💱 that lined up to form poker hands. His next slot machine, the Liberty Bell, was built in 1899 and used 💱 horseshoes and bells as well as playing card suitmarks on the reels. Three bells lined up in a row meant 💱 the top payout. Chiefly because of the 1906 San Francisco earthquake, only 4 of more than 100 Liberty Bell machines 💱 built by Fey survive. The Liberty Bell proved immensely popular among saloon patrons in San Francisco and was quickly copied 💱 by Fey’s competitors, such as the Mills Novelty Company of Chicago.

Forces of morality and the clergy, and then of law, 💱 frequently opposed the operation of slot machines. By the time San Francisco banned them in 1909, there were some 3,300 💱 slot machines in the city. In order to circumvent the law, Fey and his competitors built machines with no coin 💱 slots in which purchase and payout (perhaps in drinks and cigars) occurred surreptitiously across a saloon counter. Soon most slot-machine 💱 factories relocated, especially to Chicago.

The ubiquitous reel symbols of various fruits were first used in 1909 by the Industry Novelty 💱 Company. In an effort to circumvent legal restrictions on slot machines, the company called its machines chewing gum dispensers, replaced 💱 suitmarks on the reels with fruit symbols that suggested various flavours of chewing gum, and built a few machines that 💱 really did dispense gum. The idea was copied in the following year by the Mills Novelty Company, which added on 💱 their reels a picture of a chewing gum pack (soon stylized as the well-known “bar” symbol). The Mills Novelty Company 💱 also invented the “jackpot” in 1916, whereby certain combinations of symbols on the reels regurgitated all the coins in the 💱 machine.

During the 1920s the machines were popular throughout much of the United States, especially in resort areas, and they continued 💱 to be popular into the Great Depression years of the ’30s. But knowledge that the distribution of slot machines was 💱 often controlled by organized crime led to increasing legislation restricting their sale and transportation as well as their use except 💱 in private social clubs. Prohibition outside Nevada, which had relegalized gambling in 1931, was virtually total by 1951, although illegal 💱 operation, especially in private clubs, was widely ignored.