OVERVIEW

HISTORY

DIRECTORS & CEO

CAREERS

HISTORY OF THE POKER MACHINE

But the era of the slot machine really began in the last quarter of the 19th century. We do not know where, when and by whom the first primitive slot machines, also known as 'nickel grinders' or 'one-armed bandits', were produced. But we do know that the first counter-top models appeared around 1890. At the same time, floor machines were being designed: heavyweights which stood on the floor and were much more attractive than their table-top counterparts.

These primitive slot machines used three main systems of play. First there was the spinning wheel, a kind of vertical roulette. Then there were machines where the coins had to drop on specific areas to win, and thirdly there were machines which randomly paid out a specific percentage as soon as there were enough coins in the machine.

Even in these early days, frustrated gamblers unable to win the prizes they thought they deserved would sometimes cheat or even vent their rage on the machine, counter-top machines had to be monitored by staff, as they were only semi-automatic. Only the floor machines were fully automatic and required no supervision.

The original three great manufacturers of slot machines were the Mills Novelty Company, the Caille Brothers and the Watling Manufacturing Company. Between them, these companies dominated the market for 28 years. Others produced their own floor machines, but most were short-lived and were either taken over or forced out of the business.

Floor machines survived into the 1930s. Counter-tops went out of fashion in the 1890s, but then enjoyed a revival in 1899, when Karl Fey, a German who had emigrated to the United States in 1882, produced the first three-reel automatic payout machine in San Francisco. This was the famous Liberty Bell. Fey later changed his name to Charles after acquiring United States citizenship; the name Liberty Bell must have been in honour of his homeland. These machines were set up in specially selected saloons in San Francisco, whose owners paid Fey a percentage of the takings.

Although Fey made sure that his machine had a close eye kept on them, a Liberty Bell was stolen in 1905, probably by Mills. This marked the beginning of a run of ill-fortune for Charles Fey, who was really the inventor of the slot machine. First he lost his factory in the great San Francisco earthquake, and then he lost nearly all his money when his bank when bankrupt.

In 1909, after four years of work, Mills bought out its own redesigned and technically improved Liberty Bell. Inevitably, Thomas Watling and the Caille brothers then came out with their own Liberty Bells, but Mills' model was by far the most successful. The Operators Bell developed in 1910, had a separate slot for ball gum, and the fruit symbols used today, such as lemons, oranges, cherries and plums, depicted the various flavours of gum.

The external design of the Mills' Bells changed over the years. Initially the whole cabinet was made of metal and the sides were made of oak. Each time an innovation was introduced it was immediately copied by all its competitors, with scant disregard for the law on such matters. Inevitably there were several legal cases.

In 1926 Jennings, the country's biggest second-hand dealer in slot machines, began designing and manufacturing its own machines. The first of these was the Bantam, so called because of its relatively small size.

In 1929 the big Four became the Big Five as a new manufacturer, Ed Pace, entered the market in a big way. Pace and the juke box company Rock-Ola scored a huge success with the production of conversion fronts. These new fronts, with a jackpot and vending facility, led to a new boom in the industry.

Selling chewing gum was a subtle way of getting around gambling laws, as technically they were vending rather than gaming machines. These 'combination fronts', and the fact that patents to the individual machines were not very clear, meant that there was soon a huge variety of machines on the market. (This sometimes makes it difficult today to establish which companies made which machines).

The slot machine manufacturers were hit by the depression of the 1930's, but most managed to keep their heads above water by producing cheaper machines and getting around the gambling laws. Manufacturers had many ups and downs, especially with the arrival of the war, which forced many of them to stop or cut back production of gaming machines. But some of the leading names managed to come bouncing back.

The next set back they faced were new gambling laws, including the Johnson Act of 1951. This meant that the only remaining markets were Nevada and the export market, both of which became extremely competitive as a result. The Caille brothers ceased production, and the Big Five became the Big Four again. Jennings was still thriving with its Chief range and Mills was the market leader with its successful Hi-Top Line. Watling sold all its rights to European companies; shortly afterwards Pace shut down production and finally Mills went into liquidation. It was the end of an era."

From: Ladwig, Dieter & Raszkowski, Petra (et al) Slot Machines 1994, Tiger Books International PLC, London. ISBN 1-85501-482-3.

The initial development of poker machines began in a small heavy dental equipment factory in Sydney. An engineer saw that the machinery could be used to manufacturer poker machines. He alerted the owner, Len Ainsworth, who researched the idea and discovered the market potential for gaming machines.

The gaming machine industry at that time was undersupplied and there was a strong demand. In 1954, Len Ainsworth founded the business that became Aristocrat*. For many years Len Ainsworth remained its Managing Director, Chairman and controlling shareholder.

In 1956 the legalization of the poker machine in New South Wales led to an expansion of the market. Poker machines manufactured by Len Ainsworth were in demand. His gaming machines were popular, renowned for their innovative designs, features and games.

By the early 1960's there were 1500 clubs in Australia. Len Ainsworth decided to enter this market, utilising his renowned experience and reputation.

By the 1980’s Ainsworth's company, had become the dominant player in the Australian poker machine industry.

During the 1990's the gaming machine industry experienced rapid growth. This was due to a relaxation of the laws in New South Wales. As a consequence, clubs and hotels could retain licenses for poker machines. This led to an expansion of the gaming machine industry from $14.52 billion in 1990/91 to $66.04 billion in 1998/99.