A slot machine is a gambling machine that works by inserting one or more coins or tokens into a slot and then pulling a lever or pressing a button to activate one to three or more reels that are divided into horizontal segments by different symbols. Depending on how and how many of the symbols line up when the whirling reels come to a stop, the machine pays out by dropping two to all of the coins into a cup or trough. The word slot machine was initially used to refer to both automatic vending machines and gambling machines, but by the twentieth century, it was almost exclusively used to refer to gambling machines. The original coin-operated gambling machines in the United States were novelty items—such as two miniature horses that would race once a coin was entered in the machine—rather than direct gambling machines.

Such gadgets encouraged betting amongst clients when placed atop a bar in a saloon or similar venue. Winning clients were usually rewarded with drinks or cigars, or trade checks (specially made metal tokens) that could be exchanged for refreshments, according to the owners of most machines. By 1888, there were coin-paying machines on the market. Later devices had a round-shaped display and a spinning indicator that came to rest on or pointed to a number, color, or image; earlier devices had a circular display and a spinning indicator that came to rest on or pointed to a number, color, or image.

In 1894, Bavarian-born American inventor Charles August Fey, who was working as a machinist in San Francisco at the time, constructed the first coin-operated gambling machine. The 4-11-44 was manufactured in Fey’s basement the next year, and it was so popular at a local tavern that he resigned his job and founded a factory to make additional units. The Card Bell, the first three-reel slot machine with automatic cash payouts, was invented by Fey in 1898. When the Card Bell was pressed, the reels began to spin, and the suit marks on the playing cards aligned to form poker hands.

The maximum payout was equal to three bells in a row. Due to the 1906 San Francisco earthquake, just four of Fey’s more than 100 Liberty Bell devices remain. The Liberty Bell was instantly popular with San Francisco bargoers, and Fey’s competitors, such as Chicago’s Mills Novelty Company, quickly copied it.

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