Small Change Means Big Business by Andrew Truman

A while ago I went to Las Vegas. As I walked into a casino, I was overwhelmed by the lights, the sounds, and the sights of rows and rows of “one armed bandits”. It is so tempting, you get to play for as little as a penny, a nickel, or a quarter – small change for a few minutes of entertainment. Our society has always been a bit more willing to part with small change than we are with large sums. Because of this, and an appreciation for convenience and autonomous amusement, coin-operated commerce took a strong foothold early on. In the late 1800s with the Industrial Revolution making global waves, the era of coin-operated machines really began to develop with early vending machines (even though it saw its origins much earlier). During the very early 1700s, pipe tobacco and snuff vendors started to appear around England. Legend has it that even earlier, historians indicate even as early as 2,000 years ago in ancient Egypt, a primitive holy water vendor would provide a small splash of water for a worshiper’s coin.

Coin-operated machinery takes on many forms and is typically divided into three major categories: vending, arcade, and gambling. “Vending” consists of machines that provide an object for a set price like the above holy water vendor or a candy machine that gives a gumball for a penny. “Arcade” is comprised of machines that perform an amusing function such as a Mutoscope that shows a short motion picture or a series of images for a price. “Gambling” is relegated to those games of chance with set odds that can potentially pay the patron more than he or she has invested like the “one arm bandits” or slot machines that one most equates with the coin-op field.

Vending machines were followed in the 1890s by gambling devices and the industry prospered. Initially based on poker, roulette and dice games, they were a good source of income for the proprietors who would pay winners in cash or store merchandise. These gambling machines were known as “trade stimulators” because they boosted business, providing amusement for the customers and income for the proprietor. It wasn’t until 1898 that the first three-wheel payout slot machine was invented, beginning automated money making for the owner without his actual involvement. It was around the same time arcade and other amusement machines began to develop, resulting in penny arcades that would feature coin-operated music machines, strength testers, fortune tellers, scales, and the like. This led to a burgeoning industry that put coin-operated machines in every city and town across the country in bars, hotels, country stores, etc. The charm, beauty, and style of these items were a major attraction right through its “Golden Age” during the 1920s and 30s, which saw the greatest production and revenue. The war effort of the 1940s slowed production as materials were needed elsewhere as well as the further development of prohibitive gambling laws.

Technological developments allowed for a resurgence in the field from around 1950 on. But as the machines fell into disrepair, discarded or replaced with newer models, their scarcity increased, making for highly sought after collectibles that continues to this day for their sense of nostalgia and America’s cultural past. With modern technology and the use of paper currency, digital banking, and credit cards, it is entirely possible we may someday see the end of the coin and hence, the eventual demise of coin-operated machines. Until then, the artistry and appeal of the classics will live on well into the foreseeable future, surfacing in auctions like Julia’s and old school collections.