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Those laws are still on the books, of course, but I expect game show producers have got better at working around them in the small print, while regulators haven't kept up.
I could be wrong but this was early in the era of popular computing — and interfacing with high-current lamp circuits would have been a challenge for most. The other compelling reason to believe it was mechanical is that having only 5 patterns seems really lame if there was software driving it.
Why only 16 of the possible 18 tiles would ever have the Whammy, I have no speculation.
> The motivation for this aberrant behavior was a contest put on by a local radio station. Each day a disk jockey would read a serial number aloud on the air, and if any listener was able to produce the matching dollar bill they would win $30,000. Michael reasoned that 100,000 one dollar bills was 100,000 opportunities to win the prize, giving him a statistical advantage. And even if his scheme proved fruitless he would just redeposit his money, so he figured he had nothing to lose.
> Michael and Teresa spent each day rifling through piles of cash looking for matches, pausing only for such distractions as eating, bathing, and excreting. They soon realized that it was impossible for two people to examine that much money in the allotted time
(sort then binary search)