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FROM SITTMAN & PITT TO INTERCASINO: THE HISTORY OF THE HUMBLE SLOT MACHINE

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Love online slots? But ever wonder how it all started? Grab a coffee and get comfy. 

So, even though online “slots” don’t actually have a coin slot, they still keep the name, and in the UK they are still referred to as “fruit machines” and in Australia as “pokies” – keeping their long heritage alive and well. 

 

Mechanical Affairs In 19th Century New York Bars

Okay, to find the very first “slot machine” we need to journey back to Victorian New York, where the locally-based company Sittman and Pitt created a purely mechanical machine featuring 5 drums and 50 playing cards – yes, actual playing cards. It could be found at the less salubrious bars across the rapidly growing city, costing a nickel to play. However, being a 100% mechanical device, it was possible for patient players to identify patterns and work out effective strategies for winning. Needless to say, they weren’t welcome at the bars. 

To address this rather pressing issue, the manufacturers tinkered with the machine to give the house a bigger edge – namely by removing the jack of hearts and ten of spades, which reduced the odds of getting a royal flush by 50%. All things considered, these machines were really more of a kind of poker machine than today’s slot games, but they were where it all began. 

 

 

Gaming With An American Icon: The Liberty Bell

Indeed, slot machines really came of age courtesy of an American inventor named Charles Augustus Fey. Sometime between 1887 and 1895, Fey constructed the first automatic slot machine. Unlike the Sittman and Pitt devices, Fey’s investigation uses only three reels, considerably simplifying things. In fact, it replaced the pack of playing cards with just five symbols – symbols that are still with us today, namely the hearts, diamonds, spades, horseshoes and liberty bell (named after the iconic symbol of American independence located in Philadelphia, Pennsylvania). 

In fact, Fey’s machine was actually named The Liberty Bell, after that iconic symbol – which also formed the highest payout combination. Of course, in the spirit of enterprise, other manufacturers soon came out with their own versions of the machine, and because Fey hadn’t patented his invention, he lost a potential fortune. But, from our point of view, the competition it kicked off was crucial – with companies striving to innovate and outdo each other. 

 

Mill’s Sweet Solution To A Real-money Ban 

But, boom! Just like that, the entire evolution of the slot machine nearly came to a grinding halt, when in 1902 machines paying out cash were banned across the United States at the federal level. 

Though that could have been the end of the humble slot machine, a certain Herbert Mills, from Chicago, saved the day using candy. Yep. While machines paying out money were illegal, there was no law against sweet winnings, and in 1907 he set up his factory to produce the “Operator Bell” machine, which paid winnings in candy instead of hard cash. Mill’s machine is why we have the BAR symbol on slots today. The symbol was a reference to the Bell-Fruit company logo, which supplied chewing gum prizes for the machines. 

Within a few years, Operator Bell slots machines were installed all over the Windy City, at tobacconists, salons, bowling alleys, and crucially, at the gas stations which were popping up everywhere as car ownership exploded. 

 

 

The Swinging 60’s: Time For Money Honey Baby, Yeah!

Despite this progress, the slot machines of early 20th century America were still very different in many ways from the even the land-based slots found in casinos today – the games from which every online slot evolved. In fact, the next truly major breakthrough regarding slots would have to wait until the 1960s. 

In 1964, ‘Money Honey’ was launched, and changed everything. Until that point all slots had been 100% mechanical contraptions. This meant that, given enough patience and brains, it was theoretically possible to predict outcomes. In practice, it was almost impossible, but the key thing was that people believed it to be possible. However, Money Honey introduced electromechanical technology to the field, instantly raising the level of sophistication. 

Despite the technological advances, the manufacturer opted to retain the traditional side handle – from which slots derived their “one armed bandits” moniker. This helped smooth the transition for players, and let them retain their sense of personal, physical control – and, critically, it helped perpetuate the feeling that players could exercise some degree of direct influence over the results. Again, within a few years, the innovations that Money Honey trailblazer were commonplace in the casino of Las Vegas and beyond. 

 

 

From The Space Race To The Internet

Less than ten years after Money Honey’s launch, at the height of the Cold War and the Space Race, Las Vegas-based manufacturer Fortune Coin debuted its Fortune Coin machine at the Las Vegas Hilton Hotel. Equipped with a “huge” 19 inch Sony television set, it coincided almost exactly with the birth of the video game industry. Indeed, Fortune Coin was so revolutionary and inspired so many people that just a couple of years later, international gambling tech giant IGT acquired the manufacturer, and proceeded to invest in the machine’s development. In 1986 this resulted in Megabucks – the world’s very first progressive slot machine. But, although there was continual innovation, the pace of change was somewhat lethargic, until the mid 1990s. 

In 1994, when the internet was just starting to become widely known in the western countries, and dial-up modems were started to be installed widely in schools, colleges and large businesses, the tiny Caribbean nation of Antigua and Barbuda became the world’s first jurisdiction to formally legalise online slots. Two years later, in 1996, InterCasino became the world’s very first online casino. In the same year, WMS Industries Inc. released “Reel’Em”, the first video slot with a second screen bonus round. The scene was now set for the rise of the video slot and online casino we know and love today – which evolved rapidly as personal computers and internet access proliferated. 

So, next time you’re enjoying a session at your favourite online casino, pay a thought to the pioneers like Sittman and Pitt, Charles Augustus Fey, and Herbert Mills. 

 

Staying with online gambling history, in early February 2021, Intertops marked the 25th anniversary of accepting the world’s first online sports wager.

 

 

 

 

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BETFRED TURNOVER HITS £995.6M AS ONLINE NEARS HALF OF GROUP REVENUE

Betfred’s latest accounts show turnover of £995.6m for the 52 weeks to 29 March 2026, with online growing to 45% of the business as retail’s share fell to 55%.

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Betfred Turnover Hits £995.6M As Online Nears Half Of Group Revenue

Betfred generated turnover of £995.6m in the 52 weeks to 29 March 2026, according to its latest accounts filed at Companies House, with its online business now accounting for close to half of the group’s revenue.

Retail contributed 55% of turnover in the period, down from 61% a year earlier, with online making up the remaining 45%. The shift continues a long-running rebalancing for the family-owned bookmaker, which built its business on the high street.

The group traces its roots to a single shop opened by brothers Fred and Peter Done in Salford in 1967, and it remains privately controlled by the Done family. It grew into one of the largest retail estates in British betting, adding the Tote in 2011, and has since built out its online sportsbook and casino to compete with the listed groups that dominate UK digital betting.

A change of year-end

The headline numbers are not directly comparable with the prior set of accounts. Betfred moved its year-end from September to March, so the comparative period covers 78 weeks to 30 March 2025. On a like-for-like 12-month basis, group turnover rose by £23.3m, according to the filing as reported by the trade press. Management attributed part of the growth to higher marketing spend aimed at increasing market share and attracting new customers.

Gross profit for the year came in at £719.9m. Operating profit was £74.1m after a one-off £4.6m charge for aborted acquisition costs, and EBITDA was £140.6m. Profit after tax was £39.6m, as reported by SBC News.

Exceptional charges totalled £7.1m, including the aborted deal and £801,000 of closure costs for a foreign subsidiary linked to the US business the group wound down in 2023-24. Betfred had earlier sold its Spanish online business, booking a £1.6m profit on the disposal.

Costs and headcount

Employee costs rose by £19.2m on a like-for-like basis, driven largely by minimum wage increases. Employee numbers edged down to 7,795 from 7,872. The group’s tax charge fell to £24.4m from £59.8m in the longer prior period.

Betfred again declined to provide a geographical breakdown of earnings, with directors stating that doing so would be “severely prejudicial to the interests of the group”.

Tax pressure ahead

The accounts close just before the rise in Remote Gaming Duty to 40%, which took effect in April 2026, so the hit to the online business is not yet reflected in the numbers. The remote betting rate of General Betting Duty is due to rise in April 2027.

The bigger risk for Betfred sits in its shops. Founder Fred Done has been one of the most vocal opponents of a proposed doubling of Machine Games Duty, telling the Financial Times that such a rise would lead the business to close 495 shops within a year, costing 2,575 jobs. In August, Betfred said it was consulting on the possible closure of up to 132 UK shops as part of its response to the tax changes already announced.

The Betting and Gaming Council has warned this week that raising MGD to 40% could cost up to 16,000 jobs across the sector. With retail still producing the majority of Betfred’s turnover, the outcome of the Budget will weigh heavily on whether the online shift accelerates by choice or by force.

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YOUTUBE OPENS MASTHEAD TO CERTIFIED ONLINE GAMBLING ADVERTISERS

Google will let certified online gambling advertisers buy YouTube Masthead placements from 21 October, extending an existing allowance for sports betting while excluding unlicensed affiliates.

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Youtube Opens Masthead To Certified Online Gambling Advertisers

Google will allow certified online gambling advertisers to run campaigns in YouTube’s Masthead, the premium placement at the top of the YouTube home feed, from 21 October 2026.

The change was set out in a Google Ads policy notice posted on 7 October. It extends an allowance that already covered sports betting, opening the slot to online gambling operators that hold certification under Google’s Gambling and games policy.

Who qualifies

Eligibility rests on certification. Operators must be certified for the relevant market, and every ad must still comply with the wider Gambling and games policy as well as local legal, jurisdictional and age restrictions.

The notice explicitly excludes advertisers in Google’s online gambling-promoting content category that are not subject to mandatory state or national gambling registration. In practice that shuts out affiliates, comparison sites and other promotional publishers that send traffic to operators without holding an operating licence themselves, even when the operator they promote is certified.

Google has not listed the countries in which the Masthead change applies. Trade press analysis of the notice has pointed out that earlier announcements on gambling ads in Google TV and Masthead placements named specific markets, while this one does not. Masthead creative is also reviewed individually, so certification alone does not guarantee approval.

Certification itself is country by country. Google requires gambling advertisers to show they hold the appropriate licence from the regulator in each market they target, and to restrict ads to those jurisdictions. That means the Masthead opening will only matter in regulated markets where Google already accepts online gambling ads, and only for operators that have completed the process there.

Part of a wider recalibration

Google’s standard policy has long barred gambling promotion in a handful of formats, including Gmail ads, Shopping ads and Masthead placements. The company has spent 2026 tightening the certification rules that sit underneath its gambling ad policy, starting in March with new requirements for online gambling advertisers and extending them across categories in September.

The Masthead change runs the other way, adding inventory for operators that have cleared those tighter checks. It gives licensed brands access to one of the most visible and expensive placements in digital advertising.

Timing against tighter ad rules

The move arrives as gambling advertising faces mounting restrictions in several of the markets where operators would most want to use it. Denmark has tabled a whistle-to-whistle ban on gambling ads during live sport alongside curbs on affiliate marketing. France has added new sign-off requirements for gambling ad campaigns, and in the UK a House of Lords committee has called for a ban on gambling advertising, a recommendation the industry has challenged.

Platform policy is also under pressure from regulators and industry bodies focused on the black market. In the Netherlands, the Dutch online gambling association VNLOK has taken Meta to court over ads for illegal gambling, while Nordic operator Paf has launched a pilot with Meta aimed at curbing unlicensed gambling promotion.

By tying Masthead access to formal certification and excluding unregistered promoters, Google’s change is likely to favour the largest licensed brands with the budgets to buy premium reach. Operators will be watching for confirmation of which markets are covered once the policy takes effect on 21 October.

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BGC SAYS DOUBLING MACHINE GAMES DUTY COULD COST 16,000 JOBS

The Betting and Gaming Council has urged the Chancellor to rule out raising Machine Games Duty to 40%, citing EY modelling that puts up to 16,000 jobs, 1,500 betting shops and 34 casinos at risk.

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Bgc Says Doubling Machine Games Duty Could Cost 16,000 Jobs

The Betting and Gaming Council (BGC) has stepped up its campaign against a further rise in UK gambling taxes, warning that doubling Machine Games Duty (MGD) to 40% at the forthcoming Budget could cost up to 16,000 jobs.

In a statement published on 13 October, the trade body cited EY modelling showing that the increase would put almost 1,500 betting shops and as many as 34 casinos at risk, while leaving the Treasury up to £124m worse off as venues close and the tax base shrinks.

Betting shops and young workers

The BGC said betting shops support more than 36,000 jobs, with over 80% of them outside London. It said the workforce skews young: 19% of betting shop employees are under 25, against 11% across the wider economy, and 51% are under 35, compared with 35% nationally. Half of the workforce is female.

Of the jobs it says are at risk, 27% are in the North of England, rising to nearly 40% when Scotland is included.

“Britain’s betting shops support more than 36,000 jobs, and more than eight in ten of them are outside London,” said BGC chief executive Grainne Hurst. “Our message to the Chancellor is simple: rule out any increase in Machine Games Duty.”

Casinos warn of closures

The intervention followed a separate BGC statement on 12 October focused on land-based casinos. It said a 40% MGD rate would put up to 3,800 casino jobs at risk and could lead some operators to consider closing as much as a third of their estates. Half of the threatened closures would be in the North of England and Scotland.

The BGC said casinos directly employ more than 10,000 people, receive 14 million visits a year and contribute £515m in taxes. More than £50m of planned investment could be cancelled or scaled back if taxes rise, it added. Hurst described the proposal as “an existential threat to casinos across Britain”.

Where the proposal came from

The idea of doubling the duty on Category B gaming machines was put forward by the Social Market Foundation, which estimated it could raise between £275m and £458m a year in additional revenue. The industry disputes that estimate, arguing that closures would erode the yield.

The warnings land on a sector still absorbing the last round of increases. Remote Gaming Duty rose to 40% in April 2026, and the remote betting rate of General Betting Duty is due to rise in April 2027. Betfred founder Fred Done has said doubling MGD would force the closure of hundreds of the bookmaker’s shops, and a report by consultancy Regulus has argued the hike would put £92m of horseracing income at risk because of the sport’s reliance on betting shop turnover.

The BGC said the regulated industry as a whole supports 109,000 jobs, contributes £6.8bn to the UK economy and pays more than £4bn a year in tax.

What happens next

The Treasury has not confirmed whether MGD is under review, and the BGC’s figures come from modelling the industry commissioned. With the Budget approaching, the sector’s lobbying is now focused squarely on retail, after a year in which online operators bore the brunt of the tax changes. Whether the Chancellor treats machines as the next source of revenue will shape the size of the British high street estate for years to come.

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