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Today online slot machines are among the cornerstones of the gambling industry and are among the most profitable revenue streams for land based casinos. The history of slot machines as well as the history of gambling inside the usa are intertwined and may also be traced back to 1895, when the first ever slot machine was built.
Designed and built by Charles August Fey, the Liberty Bell slot machine was first available to the public in 1895. Named after the San Francisco saloon it was placed in, the Liberty Belle became an instant hit with gamblers. Recognising that there was potential within this new untapped market, and buoyed by the huge publicity and success that his first invention had created, Charles August Fey decided to set up a new company that will focus solely on the design and manufacture of slot machines. The new company, aptly named 'Charles Fey and Company Inc' would go on to dominate the slots industry for the next 50 years.
The first half of the 20th century was a challenging one for the gambling industry as a whole and was characterised by legal regulation. In 1909 slots were made illegal within their home city of San Francisco, and by 1911 this had spread to the whole State of California. On the contrary, the small range of slot machine companies, led by Charles Fey became increasingly innovative in identifying loop holes in the law. Within an attempt to ensure their machines did not meet the legal classification of a 'gambling device' slot machine, manufacturers changed the symbols used on the machines from gambling themed cards to fruits and sweets.
Whilst certainly creative, it was only a matter of time before the authorities recognised the inherent weaknesses within their legislation. The slots industry was dealt an additional blow with the 'State v Ellis' case, which effectively outlawed all slot machines.
Regardless of the legal restrictions, the slots industry continued to grow and develop, primarily in Nevada where the gambling industry was free from the legal restrictions faced in other states. On the back of rising demand, the Mills Novelty Company grew to become one of the major players within the industry on the back of producing cheaper slots in lighter wooden cabinets. In 1933 they produced the 'Castle Front' slot which came to symbolise the slots gambling market at this time.
An additional blow was dealt in 1951, when Congress passed the Transportation of Gambling Devices Act. In spite of this, technological advances, initially electro-mechanical development within the 1960's by the Bally Corporation tool slot machines to new levels of functionality that provided players with more advanced features that added significantly to the entertainment levels experienced by players. Further advances in the 1970's saw the introduction of Video Slots. It was at this time that International Game Technology (IGT), among the current giants in the slots industry was established.
With technological advances came the introduction of Random Number Generators (RNG's), a vital development which is still at the core of the land based slots market and also the ever expanding online pokies market. The slots industry has come a long way since the Liberty Bell was first produced back in 1895, and it has faced an exceptional amount of legal challenges and regulation. Not surprisingly the industry has not just survived but has flourished.