The slot machines industry suffered their greatest losses during prohibition.  As Feds were unable to enforce a ban on booze, they had to find another target.  Unfortunately, that target was the slot machines industry.  In the early 1900's, the anti-gambling law movement emerged.  Slot machines fell victim to this movement and in 1909 were outlawed in San Francisco (slot machines were invented in San Francisco by Charles Fey).  Believe it or not, in 1910, slot machines were also outlawed in Nevada.  By 1911, the whole of California adopted the ban and slot machines were banned in the rest of the state.  The fate of slot machines seemed destined to be buried at sea and as time went on, more states followed suit in support of the ban.

In 1930, the New York Mayor (La Guardia) posed for the media on barge filled with slot machines.  These slot machines were all confiscated and on their way to the depths of the ocean.  Amid the coin operated slot machines were also vending machines which were not nor could they be used for gambling purposes.  Innocent gum and candy vendors also suffered as a result of the target on the slot machine vendors.  There are several bodies of water throughout the United States that contain the remnants of these confiscated slot machines. 

Benjamin Siegel should be accredited for his role in the history of not only slot machines, but in the making of Las Vegas.  In the later 1940's, construction on the Flamingo Hotel began.  Siegal filled the casino floors with slot machines to help keep the wives and partners of the high rolling gambler's entertained.  he had planned on constructing the finest hotel/casino in Las Vegas.  Unfortunately, Siegal was murdered during the course and was not able to live out his dream.  Siegal's role in the industry would never outweigh his more prominent gangster image of "Bugsy".