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slot machine, gambling device operated by dropping one or more coins or tokens into a slot and pulling a handle 🌝 or pushing a button to activate one to three or more reels marked into horizontal segments by varying symbols. The 🌝 machine pays off by dropping into a cup or trough from two to all the coins in the machine, depending 🌝 on how and how many of the symbols line up when the rotating reels come to rest. Symbols traditionally used 🌝 include stars, card suits, bars, numbers (7 is a favourite), various pictured fruits—cherries, plums, oranges, lemons, and watermelons—and the words 🌝 jackpot and bar.
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.
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After World War II the machines came into worldwide use as governments were drawn by the prospect of tax 🌝 revenue. (In 1988 slot machines were permitted in French casinos, ending a 50-year ban.) In the 1950s electromechanical slot machines 🌝 allowed many new payout schemes, such as 3- and 5-coin multipliers, where the sizes of the payouts are proportional to 🌝 the number of coins inserted before the handle is pulled. Video slot machines, which simulate reels on a monitor, were 🌝 introduced in Las Vegas in 1975. Such machines have had limited success; for the slot-machine addict, the action of pulling 🌝 the handle, the sound of the reels falling into line, and most of all the jangle of cascading coins are 🌝 essential parts of the attraction. In 1986 electronic systems were introduced to link numerous slot machines in different locations and 🌝 thereby allow a fraction of each inserted coin to go into a shared “super jackpot,” which may reach an extremely 🌝 large size before it is won; for example, in 2003 a Las Vegas slot machine paid out nearlyR$40 million.
Modern slot 🌝 machines contain solid-state electronics that can be set for any desired frequency of payouts. Thus, the house advantage varies widely 🌝 between about 1 and 50 percent depending on circumstances, such as legal requirements and competition from other casinos. Slot machines 🌝 are by far the largest profit generator for nearly every casino, averaging 30 to 50 percent or even more of 🌝 total revenue. Nevada alone has roughly 200,000 slot machines.
As gambling laws were relaxed at the end of the 20th century 🌝 to allow legal gambling on Native American reservations and to expand the revenue-generating options of many U.S. states, the number 🌝 of electronic gaming machines (which came to include video poker machines as well as modern slot machines) grew significantly. By 🌝 the end of the first decade of the 21st century, more than 830,000 electronic gaming machines were operating in the 🌝 United States, and the capital generated from these devices rose from 40 percent of total casino revenues in 1970 to 🌝 approximately 70 percent in 2010.
In the early 21st century, casino operators feared that the popularity of physical slot machines in 🌝 brick-and-mortar casinos would be threatened by the sudden rise of online casinos, in which customers deposited money to make wagers 🌝 and played various games of chance using personal computers. Competition from online sites, however, had been intermittent since the advent 🌝 of the Unlawful Internet Gambling Enforcement Act of 2006, which prohibited U.S. banks and financial institutions from doing business with 🌝 online gambling companies. While physical slot machines had been legal only in state-sanctioned casinos, by 2013 some local governments within 🌝 the state of Illinois had allowed bars and restaurants within their jurisdictions to offer slot machines and other electronic gaming 🌝 machines to their patrons.
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