Sometimes proprietors would issue special tokens to the winners that could be redeemed for beer or whiskey. These types of machines were installed in saloons and the proprietor would encourage patrons to make bets on the outcome, paying off the winners in drinks or cigars. They were, in essence, mere novelty items, for example a pair of horses that would race each other if a customer put a nickel in the slot. By the early 20 th century, the term had become exclusively associated with gambling machines, thanks in large part of a man named Charles August Fey, but more on him in a moment.īack in the late 19 th century, most slot machines were a far cry from what we think of today. The term slot machine was originally the short form on the phrase “nickel-in-the-slot machine” and was used to describe automated vending machines. Redeem Now A short history of slot machines