Books have been set forth on this topic, and the bickering and interchanges about where the "hot" slots are positioned in a casino are still there – over 60 yrs after slots were first installed in gambling houses.
The traditional rule is that the superior slots were installed just inside the entry of the casino; so that people walking by would be able to see real jackpot winners and be smitten to come inside and play. Our sentiment is that this is not so anymore.
Almost all of the major casinos nowadays are enormous complexes … it’s no longer possible to see inside from the sidewalk, so there is no longer a reason to position the ‘loose’ one armed bandits close-by any exits.
Yet another traditional rule is that loose slot machines are put on the major aisles inside the casinos, again so that more people could see winning jackpots and be encouraged to play. However, we find that this also isn’t a universal rule any more.
What casinos found over the years is that people walking down the busy aisles were frequently on the way to somewhere else. If they played one armed bandits at all, they would simply put in their loose change because they happened to be walking by. Win or lose, they would very often not stop to keep playing. And the last thing a casino wants is for someone to win a jackpot by playing only a few coins and then not stay to put it all back in!
These days, casinos are constantly changing their philosophy about where to place the loose slot games.