SLOT MACHINES

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SLOT MACHINES. A slot machine known as a "fruit machine" or "fruities" (British English), "puggy" (Scottish English),[1] "the slots" (Canadian English and American English), "poker machine/pokies" (Australian English and New Zealand English), or "slots" (American English), creates a game of chance for its customers. Slot machines are also known as "one-armed bandits" because of the large mechanical levers attached to the sides of early mechanical machines and the games' ability to empty players' pockets and wallets as would thieves. The "slot machine" term derives from the slots on the machine for inserting and retrieving coins. "Fruit machine" comes from the traditional fruit images on the spinning reels such as lemons and cherries.

A slot machine's standard layout features a screen displaying three or more reels that "spin" when the game is activated. Some modern slot machines still include a lever as a design trait to trigger play. However, the mechanics of early machines have been superseded by random number generators, and most are now operated using buttons and touchscreens.

Slot machines include one or more currency detectors that validate the form of payment, whether coin, cash, voucher, or token. The machine pays out according to the pattern of symbols displayed when the reels stop "spinning". Slot machines are the most popular gambling method in casinos and make-up an estimated 70% of the average U.S. casino's income.

Digital technology has resulted in variations on the original slot machine concept. As the player is essentially playing a video game, manufacturers are able to offer more interactive elements, such as advanced bonus rounds and more varied video graphics.

Sittman and Pitt of Brooklyn, New York developed a gambling machine in 1891 that was a predecessor to the modern slot machine. It contained five drums holding a total of 50 card faces and was based on poker. The machine proved extremely popular. Many bars in the city had one or more of them. Players would insert a nickel and pull a lever, which would spin the drums and the cards that they held, the player hoping for a good poker hand. There was no direct payout mechanism, so a pair of kings might get the player a free beer, while a royal flush could pay out cigars or drinks; the prizes were entirely dependent upon what the establishment would offer. To improve the odds for the house, two cards were typically removed from the deck, the ten of spades and the jack of hearts. This doubled the odds against winning a royal flush. The drums could also be rearranged to further reduce a player's chance of winning. Because of the large number of possible wins in the original poker-based game, it proved nearly impossible to make a machine capable of awarding an automatic payout for all possible winning combinations.

Some time between 1887 and 1895, Charles Fey of San Francisco, California devised a much simpler automatic mechanism with three spinning reels containing a total of five symbols: horseshoes, diamonds, spades, hearts and a Liberty Bell. By replacing ten cards with five symbols and using three reels instead of five drums, the complexity of reading a win was considerably reduced, allowing Fey to design an effective automatic payout mechanism. Three bells in a row produced the biggest payoff, ten nickels (50¢). Liberty Bell was a huge success and spawned a thriving mechanical gaming device industry. After a few years, the devices were banned in California, but Fey still could not keep up with the demand for them from elsewhere. The Liberty Bell machine was so popular that it was copied by many slot-machine manufacturers. The first of these, also called the "Liberty Bell", was produced by Herbert Mills in 1907. By 1908, "bell" machines had been installed in most cigar stores, saloons, bowling alleys, brothels and barber shops.

The first Liberty Bell machines produced by Mills used the same symbols on the reels as did Charles Fey's original. Soon afterward, another version was produced with patriotic symbols, such as flags and wreaths, on the wheels. Later, a similar machine called the Operator's Bell was produced that included the option of adding a gum-vending attachment. As the gum offered was fruit-flavored, fruit symbols were placed on the reels: lemons, cherries, oranges and plums. A bell was retained, and a picture of a stick of Bell-Fruit Gum, the origin of the bar symbol, was also present. This set of symbols proved highly popular and was used by other companies that began to make their own slot machines: Caille, Watling, Jennings and Pace.

A commonly used technique to avoid gambling laws in a number of states was to award food prizes. For this reason, a number of gumball and other vending machines were regarded with mistrust by the courts. The Iowa court cases of State v. Ellis and State v. Striggles are used in criminal law classes to illustrate the concept of reliance upon authority as it relates "ignorance of the law is no excuse"). In these cases, a mint vending machine was declared to be a gambling device because the machine would, by internally manufactured chance, occasionally give the next user a number of tokens exchangeable for more candy. The courts ruled that "the machine appealed to the player's propensity to gamble, and that is a vice."

In 1963, Bally developed the first fully electromechanical slot machine called Money Honey although earlier machines had exhibited the basics of electromechanical construction as early as 1940. Its workings made Money Honey the first slot machine with a bottomless hopper and automatic payout of up to 500 coins without the help of an attendant. The popularity of this machine led to the increasing use of electronic games.

The first video slot machine was developed in 1976 in Kearny Mesa, California by the Las Vegas–based Fortune Coin Co. This machine used a modified 19-inch (48 cm) Sony Trinitron color receiver for the display and logic boards for all slot-machine functions. The prototype was mounted in a full-size, show-ready slot-machine cabinet. The first production units went on trial at the Las Vegas Hilton Hotel. After some modifications to defeat cheating attempts, the video slot machine was approved by the Nevada State Gaming Commission. Fortune Coin Co. and its video slot-machine technology were purchased by IGT (International Gaming Technology) in 1978.[citation needed]

The first American video slot machine to offer a "second screen" bonus round was Reel ’Em In, developed by WMS Industries in 1996. This type of machine had appeared in Australia from at least 1994 with the Three Bags Full game. With this type of machine, the display changes to provide a different game in which an additional payout may be awarded. (1)

Slot machines were not originally associated with gambling. In 1891 the Boston Traveler reported that slot machines were being used to dispense candy. (2) In 1891 the Dubuque Daily Herald reported that there were an estimated 12,000 nickel-in-the-slot machines in use across the country. English postal authorities had altered the machine for the sale of postage stamps. Beating the nickel-in-the slot phonographs found two people dropping in one nickel and then each holding a tube to his ear. (3) The Dubuque Daily Telegraph editorial writer reported that hardly "a railway station or place of popular resort" was not furnished with one or more of the latest products of mechanical genius offering various wares in exchange for a trifling fee." The writer continued that "certainly the low-working expenses incurred should conduce to render them a food investment for their proprietors." (4)

Glowing forecasts did not lessened attempts as early as 1900 to rig the machines. A Dubuque resident was arrested for boring a hole in a slot machine, inserting a needle, and stopping the dial wherever he desired. (5) It was later noted that some men were seen in Dubuque standing a long time feeding nickels into machines which "sold cigars." While there were no reports as of July of problems in Dubuque, Chicago leaders were hearing similar stories and it was alleged that some of the slot machines were "geared up" to yield a return for the owner of as much as 500%. (6)

In May 1900 municipal authorities decided to enforce a law providing that only those holding certificates from the state board of health could be midwives. The newspaper commented that "these same gentlemen have made laws against slot machines, gambling...and other iniquities. The laws against the men may not be enforced, but the women generally have to toe the mark. (7) The writer undoubtedly referred to the varying number of slot machine owners who had paid "fines." In August, 1900 seventy owners had paid while in September the number had fallen to thirty-four. (8) The Berg administration, rather than enforce the grand jury ruling against slot machines, chose to "fine" operators. Those who did not pay their "fine" risked having their machine confiscated. (9)

The municipal election of 1900 brought the slot machine issue into the political realm. The Democrats led by former Mayor Charles J. W. SAUNDERS campaigned against licensing slot machines done by the Citizen's (Republican) administration led by Mayor (BERG, Christopher|Christopher BERG]]. The Citizen's Party responded by saying that the marshal the Democrats renominated had power under the ordinance to suppress slot machines and did not. (10) Berg won the election.

A grand jury in 1901 ordered the closing of slot machines. Aware, however, that owners of the machines stood ready to resume business, the grand jury announced that any of the owners who did so would be indicted by the next grand jury. (11) While the order was carried out in the city, no attention was paid to the county where they continued in business. In Dubuque the machines were again opened and ran openly for chips. Called "trade machines," they were soon resuming the play for money. Before they adjourned, the jurymen agreed to personally gather information of any machines in operation. (12)

By June, 1902 Police Chief Morgan had given orders to the police to seize all machines found in operation. A raid on June 6th had resulted in five nickel slot machines being seized. Evidence indicated that others had been removed by the business owners and hidden. (13) Mayor Berg was not willing to easily return the machines. Despite the grand jury being unable to find indictments against any of seven slot machine owners, he refused in November, 1902 to return them without pursuing the individual cases in court. (14)

Not unlike a virus, various of the traditional coin-operated slot machine developed. In January, 1903 police began looking for "check machines." These were identical to slot machines, but used checks instead of coins. Checks were sold for five cents and cashed at the same value. (15)

Iowa casinos have some of the tightest slot machines in the country, holding back one-third more money than they did a decade ago, a recent study shows. A slot machine hold percentage is the amount a casino can anticipate earning from a machine over the long run. The study of data from 16 states found Iowa casinos had an average slot hold of 9.37 percent in 2014 — far more than the average 6.4 percent hold in Nevada, the smallest hold in the study. The machines have software that monitors what money goes in and out. The machines are tested before they are put on the casino floor and monitored by the Racing and Gaming Commission. Individual casino managers decide what the average hold should be, and that can range from 0 to 20 percent. (11)

FACILITY AND PAYBACK PERCENTAGE AT IOWA CASINOS

   Prairie Meadows in Altoona: 92.1%
   Wild Rose in Jefferson: 91.9%
   Wild Rose in Emmetsburg: 91.4%
   Catfish Bend in Burlington: 91.2%
   Riverside Casino in Riverside: 91.2%
   Rhythm City in Davenport: 90.9%
   Wild Rose in Clinton: 90.9%
   Grand Falls In Larchwood: 90.8%
   Mystique Casino in Dubuque: 90.7%
   Diamond Jo in Dubuque: 90.5%
   Lakeside in Osceola: 90.5%
   Ameristar in Council Bluffs: 90.4%
   Hard Rock Casino in Sioux City: 90.4%
   Diamond Jo Worth In Northwood: 90.3%
   Isle Casino in Bettendorf: 90.2%
   Lady Luck in Marquette: 90.1%
   Isle Casino in Waterloo: 90.0%
   Harrah's in Council Bluffs: 89.5%
   Horseshoe in Council Bluffs: 89.2%

Source: Iowa Racing and Gaming Commission

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Source:

1. "Slot Machines," Wikipedia, Online:https://en.wikipedia.org/wiki/Slot_machine

2. "The Society Slot Machine," Dubuque Daily Herald, January 23, 1891

3. "Nickel in the Slot," Dubuque Daily Herald, April 5, 1891, p. 6

4. "Wonderful Mechanism," Dubuque Daily Telegraph, January 8, 1891, p. 2

5. "News in Brief," The Dubuque Herald, February 13, 1900, p. 5

6. "Cigar Machines," Dubuque Telegraph-Herald, July 31, 1902, p. 5

7. "Midwives Must Have License," Dubuque Herald , May 17, 1900, p. 5

8. "City News in Brief," Dubuque Herald, September 11, 1900, p. 5

9. "Slot Machines Takin," The Dubuque Herald, May 20, 1900, p. 8

10. "Will be Indicted," Dubuque Daily Telegraph, June 26, 1901, p. 3

11. "City Briefs," The Dubuque Herald, April 3 1900, p. 5

12. "After Slot Machines," Dubuque Daily Telegraph, August 6, 1901, p. 3

13. "Raid on Machines," Dubuque Telegraph-Herald, June 7, 1902, p. 3

14. "About Slot Machines," Dubuque Telegraph-Herald, November 1, 1902, p. 3

15. "Stop Easy Graft," Dubuque Telegraph-Herald, January 2, 1903 p. 4

16.

11. Rood, Lee, "Iowa Slots Some of the Tightest in the Nation," Des Moines Register. December 10, 2015, Online: https://www.desmoinesregister.com/story/news/investigations/readers-watchdog/2015/12/10/iowa-casinos-slots-some-tightest-nation-study-released/76988428/