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Slot Machine History, The First Slot Machine is Born in Canada

The First Slot Machine is Born in Canada

From the traditional one armed bandits to internet slots with enough paylines to make your head spin, slots have changed a lot over the years. And thanks to visionary inventors, rapidly advancing technology, and forward-looking casino gamblers, it doesn't look like things are going to slow down any time soon. Read on for a quick look at the history of slot machines - from simple fruit machines to modern million dollar jackpots! In the next ten years, get ready to see even more exciting changes in slots technology. With the likely integration between land casinos and online casinos, get ready to see even bigger progressive jackpots. Also, with so much industry transparency, your odds may get better in the future as online casinos compete for Canadian slots players like you.

Slot Machine History

The First Real Slots Machine

Throughout the mid-1800's, there were a few automatic gambling machines, but based on what we now consider to be a slot machine, the first one was invented by Charles Fey in San Francisco in 1887. He wanted to make the machine based on poker but, with 52 cards per reel and so many winning combinations (i.e. payouts), that idea was way ahead of his time.

Instead, he dumbed it down and the Liberty Bell machine was born. With three reels and five now-iconic symbols (bells, horseshoes, diamonds, etc.) this machine was the first of its kind and it became a huge success.

The overwhelming orders kept Fey's shop running around the clock and he found a new talent - not as an inventor, but as a businessman. He never sold any of his machines but, instead, split the profits 50/50 with whomever was hosting them. Fey became rich and his original Liberty Bell slots machine is still on display in the Nevada State Museum.

Slots Machines Enter the Mainstream

With the obvious business opportunities, inventors began to compete with new slots machine designs, styles, payout structures, etc. These games spread like wildfire and, while they were originally designed for casual gamblers while the real men played table games, by the 1940's, slots had become technically advanced and their revenues finally beat out traditional games. From there on out, the sky was the limit!

In 1963, Bally Manufacturing took a quantum leap with slots gambling when they invented the first electromechanical version: Money Honey. It could finally pay big jackpots automatically, and it was much more technologically advanced than anything that came before it. Most notably, this is also the birth place of the electric lights and noises that accompany all modern slots machines.

Digital Technology Merges with Slots Gambling

Then, over a decade later, Fortune Coin Co. released the first video slots game in 1976 and started a trend that would really catch on with the mainstream market in the 80's. These machines finally let players use bills instead of coins, which was a huge logistical step in the right direction, and they also made serious bonus features possible for the first time in slots history. These machines are the forefathers of all of the machines that you see in casinos today, and their software inspired the earliest online casinos.

Quick Facts

The first slot machine was invented by Charles Fey in San Francisco in 1887. Smart guy!

Fey’s original “Liberty Bell” slot machine is on show at the Nevada State Museum.

The first electromechanical slot was developed in 1963 by Bally.

In 1976 the Fortune Coin Company created the first ever video slot.

Today, there are over 2,000 online slots casinos.

The State of Modern Slots Machines

Today's slots machines dominate the gambling landscape, providing upwards of 30% of any given casino's revenue. They are powered by digital RNG software, the bonuses are big (and loud) and cashless technology has opened the way for fast, easy bets and payouts. The biggest modern revolution, though, has to do with the online slots casinos that started popping up all over the place in the 90's.

Today, there are over 2,000 online slots casinos and their lower operating costs give them a real edge when competing with land casinos. Also, their integrated gambling software makes it easy for them to seven-figure progressive jackpots right into your living room! Until online gambling took off, there weren't many people that could credit their millionaire status to playing slots!

The Future of Slots

In the next ten years, get ready to see even more exciting changes in slots technology. With the likely integration between land casinos and online casinos, get ready to see even bigger progressive jackpots. Also, with so much industry transparency, your odds may get better in the future as online casinos compete for Canadian slots players like you.

Finally, since there's already "an App for that", most industry experts agree that mobile gambling will continue to become more and more popular every year.

Frequently Asked Questions

Slot machines are the inspiration for the online mega game, slots. Main street slot machines are an evolved form of Charles Fey's adaptation of the trade simulation machines of the era. Over the last century and more, these machines have captured the nation's imagination and found a place in the hearts of many.

Depending on where you wish to play, yes. Differing from other countries in gambling laws, Canada's gambling rules are applied under provincial jurisdiction. With the exception of New Brunswick, Prince Edward Island, Newfoundland and Labrador, casino "style" gaming is legal which, fortunately for you guys, includes slot machines. That said, internet gambling is not a form of legalized gambling.

If you can find them, you can play them. Retro themed bars and casinos often offer the older versions for prosperity and old school charm. I'm not going to lie to you though, they are not easy to find.

Don't worry, all slots are random. Any land based casino or online casino offering a non-random slot machine or game is not, quite frankly, worth its salt. The computer that powers the game generates its line orders at random.

There are no quantifiable odds with a slot game. The reels don’t overload and, while there is only so much real money a slot machine can take, the RNG inside ensures that there is no time limit on payouts. And, while many good people will attempt to convince you that they know a secret, you can't really beat them as such. You can however still win very, very big.

Nope, sorry again. Each spin is random and independent from ALL previous spins. This means that the next jackpot win has no relation whatsoever to the last jackpot win. The computer chip running the Random Number Generator (RNG) inside is constantly cycling through the internal numbers even while the machine is idle, meaning the "due" jackpot isn't actually due after all.

Providing 30% of any casinos revenue, slots are the most popular game in the house. Of these, Penny slots remain the most popular form.

The Mechanization os Canada’s Gambling Market

How technology has molded the history of gambling in Canada.

From the early war craft designs of Leonardo Da Vinci, to Nikola Tesla’s countless breakthroughs in electrical engineering, advancements in technology have been shaping our world since the dawn of time. The invention of the wheel has lead to everything from chariot races to space rockets. The first digital electronic calculating machine, developed during WWII, set the stage for whatever computer or mobile device you’re reading this on right now.

Technology is constantly molding a new future, and at the same time, writing fantastic new pages in our history books. Just look at what it’s done for the gambling industry. Not just the industry, but the innumerable bettors who take part in every type of gambling amusement imaginable.

Technology & the History of Gambling in Canada

Wagering something of value on the outcome of an event – this is something that has gone on throughout the ages. Betting on who, or what, will be faster, stronger, hungrier than its competition. In the earliest days, humans relied on wit and simple engineering. Blaise Pascal’s roulette wheel, built in in 1720, required no electricity. In fact, it was his life-long passion to devise a perpetual motion machine that resulted in the invention. Having failed in his original intent, it became the cornerstone of one of the most famous gambling games of all time, first installed at a casino in Paris in 1796.

Skip ahead to the end of the 19th century, when a young mechanical engineer named Charles Fey developed rolling drum technology out of his garage in San Francisco, California. He affixed playing cards to the drums, implanted them within a large cast-iron encasement, and behold – the first slot machine was born.

What do these have to do with Canada? Flip through the history pages and you’ll see. The French, who so adored the lackadaisical pastime of casino gambling, had been colonizing the territory of Canada since the 15th century. The bounding North American Gold Rush of the 18-1900s led countless seekers of wealth north from overrun California gold mines into the treacherously cold lands Yukon. All of those coming to Canada brought with them the technology, or at least the knowledge of that technology, to spread new age gambling to the Great White North.

Computerization of Gambling

From these grand inventions – something most of us would consider crude technology by today’s standards – we’ve been equipped with so much more. In the 1950’s, slots transitioned from simple, mechanical designs, to electronic machines with computer chips, utilizing sophisticated random number generators (RNGs) to decide where the reels would stop.

This was a huge breakthrough for the casino industry. It eliminated genuine mathematical probabilities from the equation, giving game manufacturers the ability to set their own payout percentages. Then in the 1970-80s came digital screens, endless paylines, and all manner of features software engineers could come up with.

The same technology was overtaking other gambling amusements. Video poker machines were introduced in the 1970s, just as the first personal computers were coming to market. These games really haven’t changed much over time, except that the graphics are far smoother.

Circumventing Law with Lottery-Style Results

Even card-based table games – originally requiring nothing more than a dealer, at least one player, and a deck of cards – evolved through technology. Due to legal restrictions, many casinos were unable to host live dealer tables. They were only able to provide ‘bingo’ and ‘lottery’ style gaming. Through the wonders of technology, both slot machines and electronic tables were built that could base their results on a lottery-style drawing, while appearing to offer a genuine slot machine or blackjack experience.

Welcome to the Cyber-Gambling Highway

Then, the granddaddy of all inventions came along – the internet. For games developers, making the transition from land-based to online casino games technology was simple. Physical games were already built to take place on a computer screen. Moving them to the online space was a simple matter of creating the necessary installment for casino operators and players, instead of building a large encasement to house their minuscule micro-chips.

From the mainstreaming of personal computers in the 1990s, to the development of mobile phones, smartphones and tablets over the next two decades, technology has clearly and definitively impacted the history of gambling in Canada.

No longer must we travel to a land-based casino, race track, sports book, poker room or bingo hall to place a wager. All of this and more can be accessed with the tap of a finger. The only question left to ponder is what will the next evolution in technology bring us?

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The First Slot Machine is Born in Canada

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History of Slot Machines

Slot machines, which today are counted as the most popular games of online and offline casinos, have an important history dating back more than 100 years.

In fact, today’s slot machines have come a long way from the early ones, reaching the point of being in different versions, types and different prizes.

Source:africanexponent.com

But before talking about those of today, let’s talk about those of the past and when the slots were mechanical games and why they were born.

The origins: Charles Fey and the Liberty Bell

The first slot machine was invented by Charles Fey, this was a mechanical game machine, based on the card game of poker and was thought of as a simplified answer to the problem of automating a poker game.

In 1887 Charles Fey invented a machine with 3 reels and with 5 symbols: diamonds, hearts, horseshoes, spades. This machine took the name of Liberty Bell.

The Liberty Bell prizes were fruit-flavored chewing gum, and this is where the first Fruit Machine was born, the symbols on the reels were in fact the fruits, symbols still used today in the specific machine.

The BAR symbol was then introduced in the first slot version offered by the Gum Company Bell – Fruit and which appears often and willingly still today in classic fruit slot machines.

The candy prizes were used to evade criminal prosecution under the US anti-gambling law at the time, so the first slots did not consider cash prizes.

In 1963 Bally Technologies Inc develops Money Honey, historically the first electromechanical slot machine in the world, mechanical components were replaced with electrical ones, incorporated into the slot design, guaranteeing at this point multi-coin bets and obviously better game as higher winnings.

The arrival of progressive jackpots and the graphic variations that made the machines more fun and colorful gradually gave birth to the new generation of slot machines, making them the most popular game in Las Vegas casinos.

Microchip Technology evolution

Source:inventorsdigest.com

In the 1980s the explosion of microchip technology brought some interesting advances in the world of online slots.

It must be said that the first video slot in the world made its debut already in 1979, created by Walt Fraley who invented the Fortune Coin, anticipating the technological times but unfortunately not well accepted by a public wary of the new technology that wanted the computerized reels on screen.

Famous slot maker IGT bought the Fortune Coin patent in 1976 and with intelligent marketing and further development of this new type of slot ensured the success of a machine that already had the potential, giving birth to a new one.

The number of players who know how to recognize the type of game that best suits their profile is increasing: titles with which they enjoy playing, win and have fun. And it is not just about slots of a certain theme or with a specific reel system. Although it is true that many remain faithful to the same old games, there are also those who jump from one to another depending on the theme looking for best slots of all time, if you ant to check click here https://www.winkslots.com/blog/best-slot-machines-of-all-time

The5 most common features

1.Theme: the slot machines of Egypt, terror, official … have their own club of unconditional, and it does not matter if they pay a lot or a little, or if they repeatedly repeat the same functions as always.

Structure: the number of reels, the payment system and the functions associated with both (increasing the number of rows on the board with winnings, re-spins or payments in both directions…), are extras to take into account.

Audiovisual effects: a true video slot is immersive and will accompany each event of the game with music and movement. Graphic quality determines how good a game is, no matter if the designs are 3D or flat.

4.All terrain: even if they look like real animated movies, today’s slots are designed to be played comfortably and safely from 1005 any device, without the need for an app.

Prizes: The maximum payout potential (or by how much your bet can be multiplied), the highest prize that is awarded per spin, and the existence of fixed and accumulated jackpots, make the difference.

Online slot machine

Source:greatbridgelinks.com

The epilogue is what we all know, slots land on the net, online casinos are born, the game becomes accessible to everyone and from everywhere without the need to go to any land-based casino, which in most cases is very far from where it is. lives.

The slots are colored, they become hundreds, the casinos give bonuses to play and the borders quickly expand making this game, which once gave chewing gum as a prize, the richest and most fun in the world of online gaming.

How to tell when online slots are about to pay out

When you intend to play slot machines, online ones are certainly a better choice than bar machines and the first reason is the payout. The payout represents the percentage of money collected from the AMD slot and returned to the player: it is equal to 75% in the case of bar machines and 97% in the case of online slot machines.

To understand when an online slot machine is going to pay out, you have to pay attention to the type of payout. The payout can be:

standard: it is between 95 or 99%

previous months: Many online casino sites publish the payout of the previous months

current month: to consult to decide which slot to play

It is obvious that a slot that has a high payout in the current month will certainly be avoided because it needs to recharge and consequently will struggle to give money.

Another fundamental element to understand when an online slot is about to pay is the cycle. At the end of each cycle the slot must necessarily make a payout. For example, if one slot ends its cycle with 30,000 turns and another with 15,000, it will be more convenient to choose the latter.

When are slots in land-based casinos about to pay out prizes?

The ones that certainly guarantee the highest payouts but also require a greater use of money are the slot machines of real casinos.

Source:art-rooms.org

In just a few minutes you can win considerable amounts. First of all, you need to take a general look at the various slots to choose which ones to bet on, which then must necessarily coincide with those preferred by other players.

Once seated in front of the machine it is a good habit to check that the slot has not already paid very high sums. At this point, the best strategy is to always change the machine until you find the one that pays modest amounts; don’t give up and keep playing.

If the slot allows you to make bets with a high bet, the best technique is to bet a low bet and occasionally make high bets to send the machine on tilt.

History of Slot Machines

Whether you are into a mechanical three-reel classic or an ultra-modern sparkly online slot, you're into slots all the same. Well, you're not alone. Numbers prove that slots generate up to 65% of any casino’s revenue.

Have you ever wondered where this exciting, fun, and addictive form of entertainment comes from? Read on to find out!

Page contents

It's All About Casual Fun

Since the end of the 1800’s, many types of mechanical machines have spread throughout America. The small stands in the corners of drugstores, shops, and bars providing casual gameplay for the general public. These machines include arcade games, pinball machines, and everyone's favourite slot machines.

While playing arcade games and pinball requires some skill, slots are the ultimate fun for those who just need to relieve stress. You don't have to think: just pull the lever and get rewarded. This was perfect for those at a drugstore looking to kill some time and those chilling at a bar with friends on a Friday night.

Slots: A Brief History

The gambling industry is all about innovation and changing directions. The evolution of the slot machine is the living proof of it. There have been many twists and turns in the history of slot machines. They went from bulky, hand-operated machines at the corner of a bar, into your beloved, mobile-friendly, one-click time killers.

Chapter 1: The Olden Days and the Birth of Mechanical Slot Machines

Everything started in 1891, in New York City, with Sittman and Pitt's mechanical machine. Gambling historians categorize this invention among the slots. However, it was a poker machine with modified card settings for a higher house edge.

At the end of the 1880s, Charles Fey came up with a simpler and more approachable idea. It was The Liberty Bell, the first three-reel slot machine. Failing to patent the machine led to numerous copycats and their unseen popularity in the US.

Chapter 2: What's Up With Fruits?

In 1902, the direct cash payments got banned, making way to other, less "harmless" rewards, like flavoured candy and mint. To make it more theme-appropriate, the manufacturers changed the symbols into fruits to indicate the gum flavour.

The first wildly popular fruit slot, Operator Bell by Herbert Mills, was born.

Chapter 3: Technological Advances

The mechanical slots dominated the market for almost 60 years. Soon, the first electromechanical slots with automatic payouts got into the market. It was the year 1964, and the technology was booming. Bally created Money Honey, the first slot that used electricity to turn the reels.

People were skeptical at first; thus, the manufacturer chose to keep the lever in the beginning. When people got used to it, the producers abandoned the lever. These machines had the capacity to payout up to 500 coins per game.

Chapter 4: The First Video Slot and its Popular Appeal

Fast forward 10 years, and the population was already craving for rapid change. This was the era when TV gained popularity. The screens conquered all homes in developed countries, so it wasn't too weird to replace the slot reels with a TV screen. However, video slots were considered a truly bold invention at the time. A 19-inch Sony TV set continued serving its days inside the first-ever video slot, the Fortune Coin.

When the Nevada State Gaming Commission approved the Fortune Coin for use in the state, it became even more popular with Las Vegas Strip visitors.

In 1996, video slots got an upgrade. WMS released the first video with a second screen bonus round. These slots peaked in popularity, eventually paving the way for today's slots.

Chapter 5: Internet Slots

1996 was a turning point in gambling history. At the same time, when the physical game machine manufacturing reached its historic heights, the internet took the world by storm. The gambling industry, of course, was the first to adopt new technological challenges.

New companies emerged, and the old physical slots manufacturers hired programming teams to re-create their original games in the new environment. The newer entries started pushing the limits of what a computer slot means.

A new era of slot variety kicked in. Now, we have a staggering amount of game variations. They differ in the number of reels, themes, payouts, bonuses, RTP and many other aspects. However, history shows that slots adapt to the latest, most cutting-edge hardware available when their variety reaches a peak.

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Looking Ahead!

Today, slots have already conquered mobile devices. So, what could you expect further?

With some decent estimates, the next technology to fully embrace slots could be the VR. While hundreds of small game developers appear and disappear from the landscape, the slot manufacturing veterans, like IGT and Microgaming, continue writing the next chapter of the slots' history.

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Odds of winning get longer as new wrinkles added to slot machines, although players may believe otherwise

View full size Associated Press A casino technician examines a slot machine's electronics.

With its heavy cast iron cabinet and brass claw feet, the first coin-paying slot machine looked like a mash-up between a cash register and a Victorian-era bathtub.

Gamblers in the saloons and brothels of 1895 San Francisco dropped a nickel in the Liberty Bell's coin slot and tugged a spring-driven lever to set its three mechanical reels spinning. If the cylinders stopped with three bells aligned in the glass window -- the top prize, with odds of one in a thousand -- the lucky bettor won 50 cents.

Charles Fey, the Bavarian-born tinkerer who invented the contraption, would hardly recognize the Liberty Bell's descendants. More than a century later, the slot machines that have become the most popular form of casino gambling are sophisticated computer-controlled devices.

A few retain vestigial pull-levers, a nostalgic nod to the one-arm bandit days. But coins no longer tumble into the hopper; winners are paid with a bar-coded ticket while the machine's speakers mimic the jangle of a jackpot. Microprocessors and random-number generators dictate the outcome. Actual reels have been replaced by digitized "virtual" ones.

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The advanced slots are more reliable and tamper-resistant than their mechanical ancestors. The computer's versatility means faster, more exciting games, and the possibility of bigger payouts.

But critics say the machines are more misleading and manipulative, too -- programmed to capitalize on gambling myths and to lure players to continue spending with tantalizing near-misses, losses disguised as wins, opaque odds, and other strategies. Under American and Canadian gambling regulations, the tactics are perfectly legal. They may also contribute to some gamblers getting hooked.

"Before virtual reels, you couldn't really have big jackpots," said Kevin Harrigan, a computer scientist at Canada's University of Waterloo who researches slot machine design and its impact on people."Once you could manipulate the odds -- which I would argue almost every single bit of it is deception -- that's when things changed."

Reel chances of winning

To understand Harrigan's and others' concerns, it's important to know something about probability and how slots work.

Gamblers wager money on the likelihood of an event -- in the case of slots, it's the appearance of a matching set of symbols, such as three cherries or five images of Tony Soprano, on the slot's "payline." The number of reels, and the number of symbols on each reel, determines a bettor's chances.

Fey's original Liberty Bell had three reels, each with 10 symbols (including one bell). Each symbol was as likely as another to stop on the payline. So the odds of winning weren't bad: 10 x 10 x 10 = 1,000, possible symbol combinations, and a one-in-a-thousand chance of the three bells lining up on a given spin.

Rivers Casino 2 cents slot closeup by AP.JPG

View full size Associated Press A five-reel slot machine.

To attract serious gamblers, though, casino operators needed to offer bigger jackpots than the Liberty Bell's two-bit payoff. And to avoid losing money with these bigger jackpots, they needed to decrease the odds of winning, by making the jackpot harder to hit. So mechanical slot machine makers began to add more symbols (and blank spaces) to the reels.

The symbols and blanks are collectively known as stops. Adding more stops increases the chances that the reel will halt on a blank, or on a losing or low-paying symbol. A gambler playing the 22-stop, three-reel mechanical slots common in the early 1970s had a 1 in 10,648 chance (22 x 22 x 22) of hitting the top prize on a single spin.

But the tactic had a physical limit. To fit more symbols on the reels, either the symbols had to shrink -- making them harder for players to see -- or the reels had to get bigger -- resulting in an unwieldy machine.

Another approach, boosting the number of normal-sized reels to four or five, drastically cut the probability of winning without causing as much of a space problem. Gamblers balked at the higher-reel machines, however, because they correctly sensed their odds were much worse than with the three-reel models.

Virtual reels alter odds of winning

With the rise of computer technology in the 1980s, Norwegian mathematician Inge Telnaes devised a brilliant, if devious, solution. In 1984, he

a revolutionary invention that made it possible for a standard-sized three-reel slot machine to offer the big jackpots that gamblers craved, with the long odds that casinos wanted.

Telnaes accomplished this feat by creating phantom "virtual" reels in the slot's computer memory. The virtual reels are invisible to gamblers. They have more stops -- often dozens or hundreds more -- than the physical reels that the players see spinning on the machine's face.

The disparity between the few stops on the "real" reels that gamblers see and the many stops hidden from view on the virtual reels makes it seem like the odds of winning are much better than they are.

There may be four cherries among the real reel's 22 stops, suggesting that the odds of a cherry popping up in the payline are 4 in 22. But if there are 64 stops on the virtual reel, and two of the "real" cherries aren't linked to any virtual reel stops, then the odds actually are 2 in 64.

The computer randomly halts the virtual reels, so the slot machine's play is technically still driven by chance. But Telnaes' approach clearly is meant to mislead slots gamblers. As he candidly noted in his patent application, "it is important to make a machine that is perceived to present greater chances of payoff than it actually has, within the legal limitations that games of chance must operate."

Many newer all-digital slot machines have animated reels rather than actual ones, but they still employ Telnaes' basic strategy: using visual displays that portray better odds of winning than are actually the case.

In the 1980s, when the Nevada Gaming Commission was weighing whether to allow virtual-reel slots in the state's casinos, several slots manufacturers raised concerns, according to meeting transcripts that Harrigan reviewed.

A Bally's executive worried that players were being "visually misled." International Game Technology's corporate lawyer told the gambling commissioners that a jackpot symbol "appearing four times as often [to the player] as it actually is seen by the computer" amounted to "false advertising."

IGT's man also fretted about the repercussions of slots programmers exploiting virtual reels to indirectly cause "near-misses." That's where the spin stops with a jackpot symbol just above or below the payline, spurring bettors to try again.

Whatever their apprehensions, the companies recognized the potential bonanza that the virtual-reel machines posed, and they vowed that if the Nevada regulators approved them -- which they did -- they would offer their own versions. IGT, in fact, bought the rights to Telnaes' invention and licensed it to other manufacturers.

Slot machines eventually surged ahead of table games as casinos' primary source of gambling revenue. In 2009, the average Las Vegas Strip casino raked in more than $307,000 each day from slot machines, 24 percent more than its table game take.

The Nevada gambling regulators, for their part, rejected the idea of requiring that slot machines display the odds of winning. As then-commissioner Richard Hyte reasoned, that would "take away the mystery, the excitement and entertainment and risk of playing."

Besides, "there isn't an establishment that would agree with posting those odds," Hyte remarked, perhaps forgetting that the gaming commission had the power to compel such an action if it chose.

Harrigan, the lead scientist on the University of Waterloo's

, has uncovered other methods that slots designers and casino operators use to keep players on the machines.

Video slot machines allow players to place multiple bets on how winning symbols might line up on the screen when the spinning stops -- horizontally, vertically, diagonally like tic-tac-toe, or even in crazy W-shaped squiggles.

The payoff on some of those multi-line bets can be less than the total amount the player wagered. Technically, that's a loss: If a player bets a dollar's worth of credits and wins 75, he's down 25 cents. But the machines are programmed to react as if the gambler has won a profit, with flashing graphics, ringing bells and such. Harrigan calls this effect a loss disguised as a win.

In Canada, where the provincial governments run the casinos, Harrigan used the Freedom of Information Act to obtain design documents for a video slot machine called Lucky Larry's Lobstermania. He found that, when gamblers bet on the maximum 15 lines, they were considerably more likely to experience losses disguised as wins than actual wins.

The documents also showed that Ontario gambling regulators had approved nine different versions of the Lobstermania slot machine. The slots all appeared the same, but varied in their "payback percentage" -- the portion of a gambler's wager that, on average, the machine is programmed to return. The identical-looking machines had payback percentages ranging from 85 to 98 percent, meaning the casinos kept between 2 and 15 percent of bets.

In principle, there's nothing surprising or untoward about payback percentages, also known as "holds." Casinos are in business to make a profit, and the American Gaming Association, the trade organization that represents them, takes pains to publicize that the house always has the edge. State gambling regulations, including ones recently drafted for Ohio, permit holds as large as 15 percent on slot machines. It's also not uncommon for regulators to allow a casino to have identical machines with varying holds, as Ontario did.

Possible links to gambling addiction

But Harrigan and other researchers worry that such misleading practices may encourage excessive, even addictive, gambling.

Various problems lead people to gambling addiction. One thing pathological gamblers have in common, though, according to the most widely accepted psychological model, are faulty, deep-seated beliefs about their personal skill and their chances of winning.

Philadelphia Park casino slots player 2 by AP.JPG

View full size Associated Press Near-misses can mislead slot machine players into thinking that the next spin will be a winner, even though the outcome of each spin is unrelated to the next.

Repeated exposure to a stimulating experience -- what psychologists call conditioning -- is what causes those gambling fallacies to take root.

If a slot machine repeatedly signals that a money-losing spin is a winner, a gambler begins to believe he's winning more often than he really is.

If the slot occasionally delivers a near-miss, a gambler may wrongly conclude that the next spin will be a winner and keep betting, even though near-misses are meaningless and have no effect on the next, randomly-generated outcome. (Harrigan, who's currently studying how problem gamblers respond to near-misses, suspects they regard them as "almost wins" rather than losses.)

And if a gambler consistently wins more on a particular slot than its identical neighbor, he may figure that his special playing talent accounts for the difference, when it's really just how the machine is programmed.

"What I think keeps people gambling are the [slot machines'] structural characteristics, the things like the illusion of control and the near-misses and the event frequency," said psychologist Mark Griffiths, who directs the International Gaming Research Unit at Britain's Nottingham Trent University. "If you're vulnerable or susceptible, I think those things absolutely contribute to addiction."

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