I’ve written a lot about slots games and slot machines on this site. So much so I looked into the history of the first slot machines and where they came from. This is what I found.
In 1891, Sittman and Pitt of New York City developed the precursor to today’s modern slot machine. Based on the popular poker game, the machine contained five drums that carried 50 cards each. Players would insert a nickel and pull the lever in the hopes of a good hand.
During this time, there was no numerical payout value. Bars and clubs would offer players pitchers of beer, food, and other items in the event of a spin. However, these occurrences were slim and none because establishments would remove the ten of Spades and the Jack of hearts which would cut the odds dramatically.
The invention of automatic payout came with a new series of the invention five years after Sittman and Pit. Charles Fey created the first one-armed bandit. By replacing ten cards with five symbols, diamonds, hearts, horseshoes, spades, and a cracked liberty bell, and using three drums instead of five he created a machine capable of automatic pay-out. Three bells was the big winner, players would receive fifty cents. The machine was later named, Liberty Bell. Five years later, Fey invented a machine called 4-11-44. Fey only gained more success after this and developed other machines after transitioning to a larger factory.
In 1910, slot machines could be found anywhere. This was the year of fruit symbols and a more fitting neck coin entry. By World War I, the Mills Novelty Company was producing five variations on Fey’s design and were moving their industry to Europe. When the United States declared prohibition, this only increased the popularity of slot machines.

In 1978 Atlantic City legalized gambling. Pinball manufacturer, Bally, had 90% of the slot machine market. They added reels, raised maximum bets, and hired a computer programmer to increase the size of jackpots without losing profits. This brought slot machines in to a new era of production and profit making.