A reward mechanism in which the machine directly dispenses coins to the player based on scoring outcomes during play. Cash payout machines blurred the line between pinball and slot machines — the player inserted a nickel, launched a ball, and if it landed in the right hole or triggered the right combination, the machine dropped coins into a payout cup.

Cash payout was the dominant reward mechanism in the earliest era of coin-operated pin games, particularly during the 1930s. Manufacturers like Bally, PAMCO, and ESCO built machines with visible coin escalators, odds-changing mechanisms, and payout cups that made the gambling analogy explicit. The playfield was the randomizer; the payout cup was the jackpot. These machines were enormously profitable for operators and enormously controversial for regulators.

It was the cash payout mechanism, more than any other feature, that provoked the anti-pinball legislation of the 1940s. New York City’s 1942 ban and similar prohibitions across the country targeted machines that dispensed coins, but the bans were often written broadly enough to sweep in all coin-operated pin games regardless of payout capability. The industry’s subsequent pivot toward Replay and Novelty configurations was a direct response to this regulatory pressure — an effort to distance pinball from its payout-machine origins.

By the 1950s, cash payout had largely disappeared from mainstream pinball manufacturing in the United States, though payout mechanisms persisted longer in bingo pinball machines and in markets outside the US where the regulatory environment was different.