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September 2009

Hail To The Liberty Bell by John Grochowski  

Hail to the Liberty Bell. Let jackpots ring. We’re not talking  Philadelphia and bigger issues of independence and liberty, of  course. We’re talking slot machines, one-armed bandits, spinning  reels and big paydays. We’re talking Charles Fey. Charles Fey was the  father of the modern slot machine, the man who gave the one-armed  bandits their arms and started the world spinning as easy as reel No.  1, reel No. 2 and reel No. 3.

Oh, there were coin-operated gambling devices before Fey. There were  “color wheel” machines, for starters, games with a single vertical  wheel up front, divided into color spaces. You could take a flutter  on which color the wheel would stop. But it was with the Liberty Bell  that modern slot machines really begin. It was in 1895 that Fey, a  San Francisco auto mechanic, devised the machine with three spinning  reels, a clockwork assembly of gears, clutches and pulleys, and a  handle to start it all in motion. The reels contained heart, diamond,  spade and horseshoe symbols, along with one Liberty Bell on each  reel. Line up the three Bells, and your single-nickel wager would  bring you 10 nickels in return (later Bells offered higher payouts) —  a princely jackpot of 50 cents. Or it would pay you 10 of something —  the sign on the game says three Bells pay “10 units.”      

Early slot machines were placed in bars and some retail  outlets, not always legally. They’d be touted as trade stimulators  rather than gambling devices, something to amuse the customers and  bring extra business. Those 10-unit jackpots might be free drinks,  sticks of gum or golf balls — unless the merchant was making cash  jackpots under the table, away from the prying eyes of the law.     

Fey would live to see the legalization of casinos. Nevada made  the move in 1931, while Fey passed away in 1944, at age 83. But Fey  would not live to see slot machines become as overwhelmingly popular  as they are today. In the early days of casinos — in fact, until  technology started to bring bigger jackpots and more bells and  whistles to the games decades later — slot machines were a small  piece of the casino business. They were there as a diversion, a  little break from the serious gambling going on at the craps,  blackjack and roulette tables.

But let’s pretend Fey could see what was to come. If we could time  travel, pick up Fey and whisk him into the future, what key changes  would he see as slot machines were on their way to becoming the  people’s choice among casino games?

First stop, 1964. Slot machine jackpots had already come a long way  from the 10 nickels the Liberty Bell could pay for a one-nickel bet.  But there were constraints. In the early days, manufacturers  including Mills Novelty Company of Chicago built on Fey’s innovation,  including internal coin tubes so the games could pay larger amounts  automatically without an attendant having to make the payoff. But  tubes have tight limitations on the number of coins that will fit.  What we regard today as a moderate hit of a few dozen coins would  drain tubes fast. Anything much larger would have to be paid by hand.  Whether the problem was refilling coin tubes or paying jackpots by  hand, it was all labor intensive, and expensive in time and money for  the casino.

That changed dramatically in 1964. If Charles Fey could take a walk  with us down a casino aisle, he’d be amazed to see the Money Honey  slot machine by Bally Gaming. Oh, it was definitely a descendent of  his original creation, with three reels, winning symbols and an arm  at the side, but this one paid more than 10 coins at a time. Money  Honey could pay out a whopping 500 coins at a time, and there were  plenty of combinations that would have drained earlier games — 150  coins for either three watermelons or three bars, 100 for three  stars, and had 27 combinations of three cartoon-like faces that would  pay 18 coins each.

How could the machine pay out all that? The key was the coin hopper,  developed by engineers Frank Nicolaus and Bud Breitenstein. The motor- driven hopper gave slot machines a large pool of coins rather than  the limited tubes. That enabled larger, more frequent payoffs. It  also allowed larger bets. On Money Honey, players could wager one,  two or three coins at a time, a big move from the single-nickel  Liberty Bell.

Fey would be equally amazed if he could open the machine and peek  inside. In the place of most of his gears, springs and pulleys were  servo-relays and electrical components. Money Honey was the first of  the electro-mechanical slots, the first slot machine that plugged in,  enabling lights and sounds. The Liberty Bell went where no game-maker  had gone before, but it couldn’t play a celebratory tune when it paid  off its nickels. Now games could.

With Fey properly intrigued, we could leave 1964 and take him  another 15 years into the future for a look at a project Inge Telnaus  was developing at Bally, one that took slot machines another quantum  leap ahead.

To bring truly large jackpots to slot machines — not the 10 coins of  the Liberty Bell nor the 500 on Money Honey, but the millions of  dollars we see on some progressive games today — something had to be  done to change the odds of the game. From Fey’s creation on through  the 1970s, the only way manufacturers had to change the odds was to  either make the reels bigger with more stops, or to add more reels.

Early games had 10 symbols on each of three reels. If there was one  top jackpot symbol per reel, the odds of winning the big one were 1  in 10x10x10, or 1 in 1,000. Expand the reels to 20 symbols each, and  the odds grew to 1 in 8,000. Make it a four-reel game with 20 symbols  per reel, and it was 1 in 160,000. A game could pay some nice money  at that point, but accounting for other, smaller payoffs during the  course of play and a little something for the house, jackpots still  couldn’t be of the lifestyle-changing variety.

It took computerized slots to change that, and the random number  generator. Telnaes devised a system for mapping slot symbols onto a  virtual reel, making the physical reel behave as if it has more  symbols than it really does.

To simplify a bit, let’s say I have a 20-stop physical reel with one  7, two triple bars, three double bars, four single bars and 10 blank  spaces. And let’s say I want it to behave as if it has 64 stops  instead, with one of them being the 7, four of them being triple bars  and so on. I have the programmer tell the game’s program that  whenever No. 1 comes up, to have the 7 stop on the payline. Whenever  No. 2 or No. 3 come up, have the first triple bar stop on the  payline. Whenever No. 4 or No. 5 is generated, show the second triple  bar. And I keep assigning numbers until I reach my target of 64. If  you can take that reel with 20 symbols or blanks and make it behave  as if it has 64 stops instead, there are 262,144 possible  combinations. With that, you can start paying some sizeable jackpots.  If you want potential payoffs of really big bucks, you can make the  virtual reel bigger without increasing the size of the physical reel.  With 256 virtual symbols or spaces, there are nearly 17 million three- reel combinations — 16,777,216 to be exact. If only one symbol on  each reel is the top jackpot award, the casino can start paying  lifestyle-changing prizes.

With Fey’s mind no doubt boggled by the notion, let’s take him just  a few more years into the future for one more step that had to happen  to turn modest-paying slot machines into three-reel jackpot  factories. It wasn’t enough to just map out the virtual reel. There  had to be a mechanism to put it into effect, to make sure the reels  stop where the RNG tells them to. That came in 1984 when Gary Harris  and Randy Adams of Universal Co. patented the computerized stepper  motor. Reel spinning slots, whether they have three reels or the  popular new five-reel configuration, are still called “stepper slots”  within the casino industry today. Along the way, International Game  Technology would acquire the Telnaes and stepper patents, helping  along its modern-day dominance among reel-spinning slots. From the  outside, the most popular, durable games of the last couple of  decades — Double Diamond, Red White and Blue, Wild Cherry — remain  easily familiar as children of the Liberty Bell. But random number  generators, virtual reels and computerized stepper motors make then a  different generation indeed.

From here on out, the innovations come fast and furious. From 1984  we need jump Fey forward in time only two more years, to 1986, to see  Megabucks, the first of the wide-area progressive jackpot systems. In  Fey’s day, when 50 cents was a windfall, he never got to see  progressive slots, with a percentage of each bet added to the  jackpot. And he certainly never saw anything like Megabucks, the  first of the wide-area progressives. Wide-areas link jackpots in  multiple casinos, so that a percentage of a wager made in Casino A  will raise the jackpot also available in Casinos B, C, D and E.  Jackpots in the millions of dollars would have astounded Fey. So  would the technology to electronically link the casinos so that the  jackpot increase instantly was displayed in all.

The innovations come fast and furious in the computer age. In the  late 1980s, we’d be able to show Fey the conversion to credit play,  with credits mounting on a meter instead of coins dropping out of the  machine on each win. And a few years later, in the ‘90s, he’d note  the addition of bill validators, so players could slide currency into  machines and get credits to play against instead of dropping coins  into a machine to start play.

Together, those two innovations made a huge difference in the way we  played. Going decades beyond the Liberty Bell, in Fey’s lifetime the  most sophisticated slot machines required players to drop a coin in  for each play, then would pay on each winner. By the late 1980s, that  had changed a bit. You still had to drop coins for your first plays,  but winnings would mount on the credit meter, and as long as there  were credits on the meter, you could play them instead of dropping  more coins. When slot manufacturers started adding bill validators to  machines in the 1990s, that took us another leap forward, to starting  with credits on the meter, and seeing coins only when we hit a button  to cash out.

If we jumped ahead to modern times, we could show Fey the logical  extension of this: slot machines without coin slots. Games where  players never use coins at all. From the first experiments with  ticket printers — and the objection from players who had been used to  coins used in slots all the way back to the Liberty Bell — we’ve  reached a modern day where nearly all games use ticket in, ticket out  payoffs. Push the button for a payoff, and you don’t get coins  clanking and clattering into a metal tray. You get a bar-coded ticket  that you can then redeem for cash. That would be a new one on Fey.

But we don’t want the great innovator to miss what was going on with  the fun parts of the games, the ones that enhance our entertainment  experience. So we take him to 1996, where Anchor Gaming’s Wheel of  Gold was causing a commotion. Remember Randy Adams, one of the  driving forces behind the stepper motor when we visited 1984? By  1996, he was at Anchor, and Anchor was pushing the first bonus wheel.  The Wheel of Gold mounted a column at the back of a standard Bally  slant-top slot machine, with a vertical wheel atop the column. The  wheel was segmented into bonus amounts, and when the special wheel  symbol landed on the payline, a tone would sound. The player would  press a button to start the wheel spinning. When it stopped, the  player would get the number of bonus credits at the top of the wheel.

It was a sensation. When the tone sounded, players all around would  stop their own games and watch the wheel. It certainly caught IGT’s  attention — no doubt it would have caught Fey’s attention, too. The  world’s largest slotmaker licensed the system, and later bought  Anchor. In IGT’s hands, Wheel of Gold morphed into Wheel of Fortune.  No doubt you’ve seen that one. Jumping one more year to 1997, we could show Fey Reel ’Em In! and  the beginning of America’s video slot revolution. WMS Gaming wasn’t  the first company to market multiline video slots with bonus events.  Such games were already established in Australia, where Aristocrat  Leisure was in the forefront.  But Reel ’Em In! was fresh and new in  the United States. Fey passed on before television reached mass  penetration, so he’d probably be fascinated by the video images of  reels. But no doubt he’d recognize the images of spinning reels as  the Liberty Bell brought to modern times.

From the beginnings of video slots to current day, the tinkering and  fine-tuning happens year by year, day by day. We could point Fey  toward mystery jackpots and multilevel jackpots, with Aristocrat  leading the way with its Hyperlink products such as Cash Express.  Every manufacturer has a version of these nowadays, with progressives  with names such as Mini, Minor, Major and Grand giving you a chance  to win a few bucks or a few thousand.

Fey probably would look in wonder at community-style games such as  WMS’ Monopoly Big Event, players sharing bonus rounds and making  playing the slots a social experience.

And the big innovation for the very near future, server-based  gaming, might just be mind-boggling for a man born in the 19th  century. The ability to instantly change game themes, to deliver  bonus rewards and comps and for real-time two-way communication  between player and casino would be totally outside Fey’s experience.

But when he stepped back and saw the reels spinning, both on stepper  slots and on video screens, Charles Fey might well nod and smile. For  all the changes, for all the computerization and bonus rounds and  progressive jackpots and ticket payoffs, the games people play are  the great, great, great grandchildren of his Liberty Bell.    

— John Grochowski is the author of The Casino Answer Book, The Slot  Machine Answer Book, The Video Poker Answer Book and the Craps Answer  Book, available through Bonus Books, Inc. at (800) 225-3775.