Charles Fey of San Francisco engineered the first one-arm bandit, a very simple automatic machine. The actual time of its manufacture is debatable. Some are of the opinion that the machine was conceived in the year 1887 while some say it was the year 1895 when it was devised. The machine devised by Fey had three spinning reels consisting of five symbols. A Liberty Bell was among the five symbols which helped the machine get its name. Horseshoes, spades, diamonds and hearts were the other symbols used.

When the bell symbol, came three in a row it resulted in the maximum payoff which was equal to ten nickels. Popularity of the Liberty Bell slot machine made other slots machines manufacturers copy its design. Hence in 1907, Chicago based manufacturer Herbert Mills built a slot machine named Operator Bell. By 1908, ‘bell’ machines became common at places like cigar stores, bowling alleys, saloons, barber shops and brothels. In 1891, Sittman and Pitt of New York’s Brooklyn produced a gambling machine. It was an ancestor of the modern times slot machine. It could hold 50 cards in the five drum that it contained. The machine became popular soon and it was installed in the bars of the city. Direct payout system was not available at that time.

The prizes varied from beer to cigars, from drinks to chewing gums. The flavor of the chewing gums depended on the symbol, for instance cherry, melon, etc. Food items were used as gifts in order to dodge legal hazards against gambling.  In the year 1940, Bally Technologies produced a draw poker machine named ‘High Hand’. It was a partial electromechanical gaming machine. Completely electromechanical slot machine, named ‘Money Honey’, was developed by Bally Tech. in 1963. ‘Money Honey’ had an automatic payout system which enabled to receive up to 500 coins without an attendant’s aid.