The Evolution of Slot Machines: A Business Perspective
When you look at it, slot games have come a long way. Nowadays, it is pretty hard (almost impossible) to find genuine machine-powered slot games where you have to pull down a lever to start the reels spinning.
But that’s a normal part of evolution. After all, with today’s technology everything evolves, even slot games.
So, what started as a novelty in the late 19th century has grown into a billion-dollar industry that kind of transitioned online.
Every aspect of social games evolved, from the game mechanics to visuals and even the psychological part of the games. This also means that the business part of things has shifted quite a lot, which is normal.
Nowadays, we have people with different preferences that demand different things, so the industry must evolve in order to survive.
Let’s dive a bit deeper and try to understand how slot games evolved over the years.
The Birth of the Slot Machine
Not many people, especially younger generations know much about the history of slot machines.
This journey that reshaped the world of online gambling began in 1895 when Charles Fey invented the Liberty Bell. This was the first mechanical slot machine, and it had quite a simpler design compared to modern-day slots.
It featured three spinning reels and simple symbols.
But what was so special about this game? Well, it allowed bars and saloons to add a form of entertainment where there is minimal engagement and knowledge is required. Just put in a coin and pull the lever.
The boom in popularity of such machines led to massive developments in the world of slot games.
Businesses quickly recognized this and began integrating slot machines to boost foot traffic and revenue.
But how did we go from the Liberty Bell to the top 10 highly engaging low volatility slots highlighted in this list from YouBet.com?
From Mechanical to Electric
The next big milestone was when mechanical slots advanced to electromechanical slot machines in the 1960s. It was Bally’s Money Honey that started this revolution, which was actually a game that had faster gameplay and higher payouts.
From the business side of things, this was revolutionary. Why? Well, faster machines mean that players can complete more spins in less time, which eventually will increase the amount of money wagered per hour.
Plus, the visual aspect of the slots improved, and people were having more entertaining experiences with all the flashing lights and sounds.
Slots Went Digital
Next, we have the digital revolution that started in the late 1970s and continued through the 1980s. This was the golden era of slots where we could see innovation, and new concepts, and game-developing companies started thinking outside the box.
But what changed on the business side of things? Well, these video slots were like a goldmine for casino companies. Why?
Well, game developers could tailor games to specific demographics, such as pop culture lovers, adventure seekers, and so on. This made slot games more attractive, and we could finally see a wider variety of games.
Here we have another important year that we must mention, and it was the launch of the first progressive jackpot IGT’s Megabucks in 1986. This is a slot concept that is stuck with the industry to this day and was where multiple machines contributed to a shared massive prize pool.
Now, having a $1,000 prize on a slot is great, but imagine people seeing an ultimate jackpot of $500,000 back in the day? It must have been revolutionary.
The Internet Boom
If we move towards recent times that you actually remember, we can see the internet revolution of slots that happened in the 1990s. This is when things changed quite a lot!
After all, the internet allowed slot games to transition from physical casinos to virtual platforms and reach new audiences that have never even walked the casino floors.
Yes, most of the internet slot games in the 90s were terrible, but so was the Liberty Bell slot machine. It is part of how things evolve.
From the business side of things, this was probably the biggest change that ever happened to slots. At that time not many people had internet access, but it was still a major milestone that shaped the slots we have nowadays.
Internet slots were more engaging, offered better visuals, were easier to maintain, and of course, there were lower costs since companies don’t actually have physical places that need to be maintained.
Mobile Gaming
The advent of smartphones in the 2010s ushered in the era of mobile gaming. Players no longer needed to sit at a desktop or visit a casino; they could spin the reels from their phones anytime, anywhere.
Mobile slots opened new revenue streams for operators by tapping into the growing market of casual gamers. The portability and convenience of mobile games expanded the player base beyond traditional gamblers. For businesses, this shift also meant adapting to a freemium model, offering free-to-play slots with in-app purchases for bonuses or virtual currency.
By 2024, mobile gaming accounted for over 70% of the online gambling market, a testament to its dominance and profitability.
This isn’t the end of slot’s revolution. In fact, we will see a lot more changes in the future. For example, the crypto revolution has already begun, and something tells me that slots will go under a massive overhaul in the recent future.