Tokens for slot machines have evolved slightly over the years but have always been based on money. For real life casino gambling, cash and coins need to initially be cashed in upon arrival in order to receive tokens to use at the slot machine. Tokens can also serve as keepsakes for some people who visit casinos as well as good luck charms for others.

The first slot machine was created in 1891 by Sittman and Pitt Corporation in New York, where large drums held poker cards that were distributed as the player entered in nickels for tokens. As the machines evolved and casinos began expanding throughout the world, each casino developed their own style of token. Typically the tokens were made from copper or nickel with one side displaying the casino logo and the other the amount of the token. Slot machine toys became popular in the 1950s and plastic tokens were utilized for child's play as well as at parties with a casino theme. Many vintage tokens that are no longer in circulation having become valuable collectors pieces and highly sought after by antique dealers and slot machine enthusiasts.

Slot machine tokens are used in place of real money to be able to play a pull at a slot machine. One pull typically takes one or more tokens ranging from a penny to $100 dollars. The token allows for easy machine management with maintenance and workers who cash out slot machines. Eliminating extensive money counting at the cashier's desk also simplifies and speeds along obtaining and cashing in tokens.

Tokens can be thought of as real money when being used in a working slot machine at a casino. One token can be entered in to place a bid and then with the pull of the slot machine arm, you can either win or lose the game. If the game is won, more tokens will be distributed through the bottom payout panel or they can be left in the game and utilized as credit until they are exhausted or the player is done betting. Not all slot machine tokens are recognized as cash. Some are used for play on machines that are for personal use and can be made out of plastic and regenerated for reuse or as party favors or decoration pieces.

Each cash token that is used at a casino can appear different by size. They are generally always round resembling coins such as quarters. Most tokens are distributed in quarter and dollar values to eliminate confusion. Slot machine tokens are not permitted to closely resemble actual currency due to fraud and counterfeit issues. Each casino distributes their own tokens and they cannot be used as cash at other locations or other casinos---they must be cashed out and can only be used in that casino for cash exchange. Large buckets or bags are taken to casinos to be able to easily manage tokens during game play.

The effects of using tokens in slot machines is that it eliminates having to carry excessive change around a casino during game play. Tokens are becoming obsolete in many newer casinos and computer generated tickets are being used during game play, making it a convenience for some but a disappointment for others who look forward to hearing the rush of tokens as they win a jackpot.