Hello, today's episode answers the question where were slot machines invented as a means to understanding the 100+ history of slot machine development, which provides valuable insights into this popular entertainment device. Plus, I'll review and provide some of my thoughts on Connecticut slot machine casino gambling. Thank you for joining me for the Professor Slots podcast show. I'm Jon Friedl, and this is the podcast about slot machine casino gambling. It is where I provide the knowledge, insights, and tools to help you improve your slot machine gambling performance. Show notes are available within most podcast apps, or alternatively, at professorslots.com/e9. Jon Friedl from the Professor Slots blog reveals all his slot machine casino gambling strategies, as well as tips and tricks for thriving in the casino environment. Choose winning slot machines, and identify your gambling goals. Being entertained, earning comps, winning take home cash, or combining them. Jon has won 90 taxable jackpot and a luxury car in nine months of slot play, and made a profit at slots gambling since 2013. Remember to visit Professor Slots dot com slash subscribe, again that's Professor Slots dot com slash subscribe to get my free report revealing the top seven online resources for improving your gambling performance, including the one I've used as a top tier slot machine casino gambler. Show notes for this episode are now available on... within most podcast apps, or alternatively, on my website at professorslots.com/e9. So, let's get started with the first segment of the show. Where were slot machines invented? Between you and me, understanding the history of slot machine development provides an invaluable insight to this entertainment device. Armed with this knowledge, we can begin to understand what next technological advances to expect. Hence, I'll do my best to answer the question where were slot machines invented? What follows is a brief chronological history of significant developments in slot machine technology. Throughout, notice how slot machine popularity waxes and wanes alongside the governmental responses to this type of gambling. I'll begin with Charles Fey in 1887, and finish with the invention of the first video slot machine in 1994. The technical development of slot machines after the introduction of the computer microchip in the mid 1980s to today what we detailed in later episodes. In those later planned episodes, technological details will concentrate on their importance and relevancy to current winning strategies. These feature topics will include such advances as modern casino business operating software, player's club programs, and other techniques casinos use to foster game play by their patrons. The time and place to begin answering the question, where were slot machines invented, is the year 1887 in San Francisco. The liberty bell is arguably the first slot machine for gambling with automatic payouts. It was invented by Bavarian born Charles Fey in San Francisco, CA in 1887. This slot machine simulated the card game of poker, having three spinning reels, each with five symbols; diamonds, hearts, horseshoes, spades, and an image of the liberty bell. The highest Professor Slots Podcast: Episode 9 Copyright 2017 Jon Friedl, LLC Page 1 of 7
jackpot, which would be 50 cents or ten nickels, occurred when three reels showed a golden liberty bell. It was a massive success. Fey is generally considered to be the father of slots. In part due to his invention, however he also is known as the father of slots because he worked so hard to popularize the game. For both of these reasons, Charles Fey's San Francisco workshop is a California historic landmark. Starting in 1907, Bell-Fruit Gum's slot machines were manufacture by Industry Novelty company. The reels on these machines included cherry, melon, orange, apple, and bar symbols. It had non-cash payouts in the form of fruit flavored gum, allowing machine owners to avoid prosecution under the anti-gambling laws of that time. The cherry and bar symbols became traditional to slot machines and are still commonly used today. The bar symbol was a company logo of the manufacturer. For more information, consider taking a listen to my previously released episode six of the Professor Slots podcast, which goes into greater detail about the origin of the traditional fruit reel symbols found in modern slot machines. By 1910, slot machines could be found worldwide, with companies in Europe mass producing 30,000 of them, while in America, machines were installed in most cigar stores, saloons, bowling parlors, brothels, and barber shops. Improvements immediately found in slot machines were cast iron machines replaced with wooden cabinets, improved mechanicals allowed for back to back jackpots, which was not possible in earlier designs. A new coin accepter was developed to limit the use of fake coins or slugs. And machines were designed to be quieter. In 1909, new laws began to be produced prohibiting slot machines from dispensing cash, with the results of slot machines having the aforementioned non-cash payouts of fruit flavored gum. This coincided with a rise of an interest in the restriction of the production, importation, transportation, and sale of alcoholic beverages. Eventually leading to a constitutional ban which became known as prohibition in the United States. From 1920 to 1933, prohibition existed in America. When we learn about the history of the United States, we're generally taught that prohibition was a time when the making of and consumption of alcohol was illegal. What generally isn't taught in history class is its consequence with regards to slots. Since slot machines were mainly found in bars and saloons, they moved to speakeasies alongside the distribution of alcohol, and returned to offering in cash prizes. So, as a result, during America's prohibition, slot machine popularity increased even more. How much? Well, the time of prohibition is also considered to be the golden age of slots due to its tremendously increased popularity. A few years before the end of prohibition, gambling was legalized in the state of Nevada in 1931 due to the increase popularity of gambling, despite governmental pressure on the gaming industry. In the 1940s, the first slots were installed in Las Vegas's Flamingo hotel. However, after World War two, municipalities began to be drawn by the prospect of tax revenue. A consequence of this governmental response was an exponential growth in the manufacturing and playing of slot machines, which continued well into the 1960s. Slot machine development advanced from a fully mechanical machine to an electromechanical device in 1963 with the Money Honey slot Professor Slots Podcast: Episode 9 Copyright 2017 Jon Friedl, LLC Page 2 of 7
machine by Bally Technologies, a company formerly limited to the manufacturing of pinball machines. Besides improving gameplay with all manner of flashing lights and sounds, the electrical components allowed for multi coin bets with higher payouts. Bally Technologies would continue to develop slot machine technologies for decades. By 1970, Bally had added more reals and made coin handling improvements to allow for more coins and higher denominations, which in turn resulted in larger jackpots for consumers. Bally went public in 1975, trading on the New York stock exchange as the first gaming company. The first true electronic slot machine, the video slot machine, was developed in 1976 in Las Vegas Nevada. It was placed in the Hilton Hotel in Las Vegas. It received approval from the state of Nevada, but only after additional security modifications were made against cheating. Atlantic City New Jersey legalized gambling in 1978. By this time, the Bally technologies behemoth had cornered 90% of the market for slot machines. Bally continued to add reels, knowingly both decreasing the odds of winning, but also increasing the size of jackpots. Over time, the number of symbols per reel were increased to a maximum of 25 and wagers were raised to first five dollars, then $25, then eventually $100. Coins would continue to be provided during slot machine jackpots until they eventually began to be phased out in the 1990s. An answer to the question where were slot machines invented, wouldn't be complete without including an electronic board component commonly known to modern slot machines. This electronic component is the random number generator. Bally Technologies hired a computer programmer to increase the size of jackpots without losing profits for the company. This was accomplished by utilizing the concept of a random number generator. As it can be extremely difficult for a computer to generate a truly random event, take it from me I'm a physicist, so sometimes the more accurate term pseudo random number generator is used. In any case, this focused business development resulted in yet another technological revolution in slot machine gaming. For those interested in this sort of thing, see Inge S. Telnaes' US Patent number 4,448,419. That's four four four eight four one nine, within Google patents. It was awarded in 1984, and entitled Electronic Gaming Device Utilizing a Random Number Generator for Selecting the Real Stop Positions. Speaking of the mid 1980s, this was a time when computers came on to the scene. In the 1980s, computer microchips allowed a leap forward in slot machine technological advances. This included the capability of having video slots, online slots, and linked machines for progressive slots. In Las Vegas in 2003, a linked slot machine with a shared jackpot reached an extremely large size before it was won. Nearly $40,000,000. One of the first slot machines with video reels was the Fortune Coin by Walt Freely. Slot manufacturer IGT purchased its patent from mister Freely, then developed it further to overcome an initial distrust of this new technology by slot machine players as well as improving its overall technical operation. Due to the careful and concerted application of targeted marketing techniques, video poker machines were found to be fair and could be trusted. Thereby overcoming people's initial skepticism over how fair the video slot machines would be. And building a public perception of trust. In the 1990s, the advent of the internet and increasingly fast and powerful computers allowed for the Professor Slots Podcast: Episode 9 Copyright 2017 Jon Friedl, LLC Page 3 of 7
first electromechanical slot machines with bonus games. Multiple lines, and the modern version of online slots. Casinos have established a wide base of slot players while, along with today's ready online access, online game developers are mostly only limited by their imagination. The first video slot machine with two screens was created in Australia in 1994 and followed by America in 1996. The second screen was used to provide the player with a different environment in which bonuses could be played. In summary, the history of slot machines is filled with technological developments. Each step in this chronological journey brought forth more inventions included into the modern slot machine. Prior to Charles Fey's 1887 invention in San Francisco, there were gambling machines but they didn't have slots for coins. Therefore, despite prior technologies being used in that device, Fey's coin operated machine is considered the first slot machine. So, let me read through the historical events in chronological order so that we can best understand the technological developments as they occurred. In 1887, Charles Fey invented the Liberty Bell, a slot machine with automatic payouts. In 1907, fruit themed slot machines were introduced, having non-cash gum rewards. In 1909, new laws began prohibiting slot machines from legally dispensing cash rewards. In 1910, slot machines could be found worldwide. In 1920, prohibition began in America and slot machines moved to speakeasies. In 1931, gambling was legalized in the state of Nevada. In 1933, prohibition ended in the United States. In the 1940s, governments became drawn to the prospect of tax revenue from gambling. In 1963, the first electromechanical slot machine was invented, which was the Money Honey by Bally. In 1975, Bally goes public, trading on the New York stock exchange. In 1976, the first video slot machine, it was invented in Las Vegas, Nevada. In 1978, gambling was legalized in Atlantic City, New Jersey. And then, 1980s, computer microchip technology was incorporated into slot machines. In the 1990s, internet and faster computers were then incorporated into slot machines. In 1994, online gambling began with the Free Trade and Processing Act. In 1995, the first online casino opened, which was called Internet Gaming Incorporated, or ICI. In 1996, the Canadian Kahnawake gaming commission was established. In 2006, the US Senate passed the Unlawful Internet Gaming Enforcement Act. And in 2013, local governments began legalizing gambling in the state of Illinois. Remember to visit professorslots.com/subscribe. Again, that's professorslots.com/subscribe, to get my free report revealing the top seven online resources for improving your gambling performance, including the one I've used as a top tier slot machine casino gambler. Show notes for this episode are now available within most podcast apps, or alternatively, on my website at professorslots.com/e9. Let's get started with the second segment of the show; Connecticut slot machine casino gambling. Connecticut slot machine casino gambling currently consists of 18 casinos and parimutuel facilities. While the state has few casinos, all are large scale operations. For example, Professor Slots Podcast: Episode 9 Copyright 2017 Jon Friedl, LLC Page 4 of 7
Connecticut hosts two of the world's largest casinos; Mohegan Sun and Foxwoods casino, both Native American gambling establishments. In fact Foxwoods is currently the world's second largest casino. The minimum gambling age within Connecticut is 18 at bingo operations and 21 for casinos. Connecticut's chapter 226 general statues for gaming policy regulation and revenue are located on the CT dot gov website. Historically, bingo was legalized in 1939 in Connecticut, further, bazaars and raffles were authorized in 1955 and seal tickets in 1987. Beginning in 1972 but repealed in 2003, non-profits could operate casino games during Las Vegas night fundraisers. Tribal state compacts and agreements are provided on the CT state website. These are the first examples I've found of tribal compacts, and appear deserving of further scrutiny and will likely become the topic of a future episode. Regarding slot machine private ownership, it is illegal to privately own a slot machine in the state of Connecticut. So, let's talk about state gaming commissions within Connecticut. Connecticut has had several state gaming commissions. The commission of special revenue introduced the lottery in 1972 before lottery operations were transferred to the newly formed Connecticut Lottery Corporation in 1996. Currently, Connecticut has its gaming division run by the state's department of consumer protection. In part, its stated goal is to ensure public confidence in the honesty and fairness of all facets of gaming for the high quality benefit of the state. In 1976, off track betting started. Live greyhound racing began in 1976. Jai alai began in 1976 and the last facility closed in 2001. Horse racing is also authorized, but there are no horse tracks currently in operation in Connecticut. Of special interest is the gaming division's gaming revenue and statistics webpage at CT dot gov. This provides slot machine gambling statistics for both North America casinos, including monthly hold percentages and payout percentages. Specific payout percentages at Foxwoods and Mohegan Sun for each denomination slot machine can also be found at the American's casino guides website within their Connecticut state slots statistics section. I'll go over some of those numbers in a moment. So, let's talk about gambling establishments in Connecticut. Connecticut's casinos have a total of 10,332 slots and gaming machines, as well as 757 table games. Mohegan Sun has 5,532 gaming machines, and 377 table games. Foxwoods has 4,800 gaming machines and 370 table games. Mohegan Sun and Foxwoods casino compete, always striving to be best by constantly upgrading their facilities. This ongoing competition is to the great advantage of their patrons, as well as resulting in a worldwide reputation. Historically, Foxwoods casino is New England's first casino, opening in 1992. Slot machines were permitted the following year. Mohegan Sun opened four years later in 1996. The second largest casino in the world, and the largest in Connecticut is Foxwoods resort Casino. In 2008, Foxwoods added a new casino to their property. Originally called the MGM Grand at Foxwoods, but renamed Fox Tower in 2013. The two Native American Indian casinos are Foxwoods Resort Casino. I have the following information from Connecticut's division of slut revenue regarding Foxwood's payback percentages by each denomination of slot machine, from mid 2016 through Professor Slots Podcast: Episode 9 Copyright 2017 Jon Friedl, LLC Page 5 of 7
mid 2017. Denominations and payback percentages are for the one cent machines, payback is %89.88. For the two cent machines, %91.57. For the five cent machines, or the nickel machines, %90.58. For the quarter machines, %91.95. For the fifty cent denomination machines, %90.16. For the one dollar machines, %93.45. For the five dollar machines, %94.08. For the ten dollar machines, %95.11. For the $25 machines, %96.16. For the one hundred dollar machine, %96.76. On average, across all denominations at Foxwood's casino, the average payback percentage is %92.25. Which denomination had the largest payback percentage? It would be the hundred dollar machine, closely followed by the $25 machine. Of course, you don't want to bet on these machines unless you have suitable bankroll amount in order to be able to play them a 100 or 120 times, as I've discussed in past episodes. The ten dollar machine has %95 and the five dollar machine has %94, almost entirely decreasing with denomination size. Mohegan sun has 295,000 square feet. And I have the following information from Connecticut's division of special revenue regarding Mohegan Sun's slot payout percentages by denomination of slot machine, from mid 2016 through mid 2017. The average payback percentage across all denominations is 91.79. This is slightly lower than the 92.25 from Foxwoods. The payback percentages by denomination are for one fourth of a penny, %86 payback. For one half cent, %85.9 payback. For the one penny machine, %88.95. For the two cent machine, %88.87. For the five cent machine, %88.09. For the quarter machine, %91.42. For the fifty cent machine, %91.98. For the one dollar machine, %93.22. For the five dollar machine, %93.98. For the ten dollar machine, %96.64. For the $25 machine, %95.14. And for the hundred dollar machine, %93.58. When you look at these numbers, you might want to consider whether or not you go to Mohegan Sun or Foxwood's, depending on which denomination machine you like to play. For instance, at Mohegan Sun, the penny machine is %88.95 payback, while at Foxwood's the penny machine has an &89.88 payback. Whichever your favorite denomination slot machine, take a look at these numbers to determine which casino you should go to for the best payback percentages. In summary, Connecticut currently has 18 casinos and para mutual facilities, hosting two of the world's largest casinos. The Mohegan Sun and Foxwoods casino. In fact, Foxwoods is currently the world's second largest casino. On the next episode of Professor Slots, part one of the next episode is how do slot machines work? This will have an introduction, a section on the service light, sections on bonus display, pay table, player's club interface, results, pay council, ticket in, ticket out, and a summary. Also on the next episode of Professor Slots, part two will be about Delaware slot machine casino gambling. As usual, I will have an introduction, relevant legal statutes on gambling, slot machine private ownership, state gaming commission, gambling establishments, and a summary. That's the end of another great episode of the Professor Slots podcast. Thanks so much for listening. Show notes for this episode can be found within podcast apps or at professorslots.com/e9. I plan to have the next episode come out very soon for you, where I'll Professor Slots Podcast: Episode 9 Copyright 2017 Jon Friedl, LLC Page 6 of 7
have more amazing content for the show. Please subscribe to and review the show, that would help so much. Here's how to subscribe. If you're an Apple user, simply visit Professor Slots dot com slash Apple podcast. That's an easy link to get you directly to the Apple podcast app. If you're an Android user, simply visit Professor Slots dot com slash Android. And that'll guide you through how to select a podcast app if you don't already have one and subscribe. Until the next episode, have fun, be safe, and make good choices. Bye. Professor Slots Podcast: Episode 9 Copyright 2017 Jon Friedl, LLC Page 7 of 7