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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 ๐ŸŒ century came to refer almost exclusively to gambling devices. The first coin-operated gambling devices in the United States date to ๐ŸŒ the 1880s, although they were actually mere noveltiesโ€”such as two toy horses that would race after a coin was inserted ๐ŸŒ in the machineโ€”rather than direct gambling machines. Set on a bar in a saloon or similar establishment, such devices attracted ๐ŸŒ wagering between patrons. With most machines, however, the proprietor paid off winning customers in drinks or cigars or sometimes in ๐ŸŒ the form of trade checks (specially minted metal tokens) that could be exchanged for refreshments. By 1888 machines that paid ๐ŸŒ off in coins were in existence. In the first ones, inserted coins fell onto an internal balance scale, where they ๐ŸŒ might cause it to tip and spill other coins out; among later devices were ones with a circular display and ๐ŸŒ a spinning indicator that came to rest on or pointed to a number, a colour, or a picture.

The first slot ๐ŸŒ machines in the modern sense were invented by Bavarian-born American inventor Charles August Fey, at the time a mechanic in ๐ŸŒ San Francisco, who built his first coin-operated gambling machine in 1894. The following year Fey built the 4-11-44 in his ๐ŸŒ basement; it proved so successful at a local saloon that he soon quit his job and opened a factory to ๐ŸŒ produce more units. In 1898 Fey built the Card Bell, the first three-reel slot machine with automatic cash payouts. The ๐ŸŒ Card Bell had a handle that set the reels in motion when it was pushed down and playing card suitmarks ๐ŸŒ that lined up to form poker hands. His next slot machine, the Liberty Bell, was built in 1899 and used ๐ŸŒ horseshoes and bells as well as playing card suitmarks on the reels. Three bells lined up in a row meant ๐ŸŒ the top payout. Chiefly because of the 1906 San Francisco earthquake, only 4 of more than 100 Liberty Bell machines ๐ŸŒ built by Fey survive. The Liberty Bell proved immensely popular among saloon patrons in San Francisco and was quickly copied ๐ŸŒ by Feyโ€™s competitors, such as the Mills Novelty Company of Chicago.

Forces of morality and the clergy, and then of law, ๐ŸŒ frequently opposed the operation of slot machines. By the time San Francisco banned them in 1909, there were some 3,300 ๐ŸŒ slot machines in the city. In order to circumvent the law, Fey and his competitors built machines with no coin ๐ŸŒ slots in which purchase and payout (perhaps in drinks and cigars) occurred surreptitiously across a saloon counter. Soon most slot-machine ๐ŸŒ factories relocated, especially to Chicago.

The ubiquitous reel symbols of various fruits were first used in 1909 by the Industry Novelty ๐ŸŒ Company. In an effort to circumvent legal restrictions on slot machines, the company called its machines chewing gum dispensers, replaced ๐ŸŒ suitmarks on the reels with fruit symbols that suggested various flavours of chewing gum, and built a few machines that ๐ŸŒ really did dispense gum. The idea was copied in the following year by the Mills Novelty Company, which added on ๐ŸŒ their reels a picture of a chewing gum pack (soon stylized as the well-known โ€œbarโ€ symbol). The Mills Novelty Company ๐ŸŒ also invented the โ€œjackpotโ€ in 1916, whereby certain combinations of symbols on the reels regurgitated all the coins in the ๐ŸŒ machine.

During the 1920s the machines were popular throughout much of the United States, especially in resort areas, and they continued ๐ŸŒ to be popular into the Great Depression years of the โ€™30s. But knowledge that the distribution of slot machines was ๐ŸŒ often controlled by organized crime led to increasing legislation restricting their sale and transportation as well as their use except ๐ŸŒ in private social clubs. Prohibition outside Nevada, which had relegalized gambling in 1931, was virtually total by 1951, although illegal ๐ŸŒ operation, especially in private clubs, was widely ignored.

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