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The first, and most direct answer to this question, is that even though coins played are used for payouts for other players the typical number of coins paid out is typically less than the number of coins put in the machine to play. A well designed.
In the earliest gambling machines, the coin or a ball fell through the machine to land, lost, in the cashbox or in a cup that guaranteed a payout. A variation of this, the Pickwick, was developed in 1900 to add a little skill to basic luck. The winning cup could be moved in an attempt to catch the descending ball. The Allwin, patented in 1913, became the quintessential British arcade game. A.
Slot machines, fruit machines, gambling machines, one-armed bandits, - these are coin-operated devices for the purpose of gambling. People put money in, hoping to win, and sometimes they win, but on average it is the machine that wins. Because of this, owning a gambling machine is profitable. There is one true way to win on the gambling.
The earliest coin-operated gambling machines were developed in the USA during the 1890s. By the 1960s, machines became electronic and towards the mid-1970s, they began to utilise video technology. Mechanical machines, rather than computer operated games, offer a nostalgic experience for players. Coin-operated machines come in many shapes and sizes, and theres a huge variety of different games.
It is an offence to manufacture or supply a gaming machine (fruit machine, slot machine) or part of a gaming machine (including software) without the appropriate licence. 'Supply' in this context includes selling a gaming machine. This prohibition does not apply to parts of a gaming machine which do not affect game outcome (such as fuses, light bulbs and artwork) or part-exchanging a machine.