In 1869, a British inventor named Montague Redgrave settled in America and manufactured bagatelle tables out of his factory in Cincinnati, Ohio. In 1871 Redgrave was granted US Patent #115,357 for his "Improvements in Bagatelle" [1], which replaced the cue at the player's end of the table with a coiled spring and a plunger. The player shot balls up the inclined playfield using this plunger, a device that remains in pinball to this day. This innovation made the game friendlier to players. The game also shrunk in size and began to fit on top of a bar or counter. The balls became marbles and the wickets became small "pins". Redgrave's innovations in game design are acknowledged as the birth of pinball in its modern form.
By the 1930s, manufacturers were producing coin-operated versions of bagatelles, now known as "marble games" or "pin games". The table was under glass and used Redgrave's plunger device to propel the ball into the upper playfield. In 1931 David Gottlieb's Baffle Ball became the first overnight hit of the coin-operated era. Selling for $17.50, the game dispensed five balls for a penny. The game struck a chord with a public eager for cheap entertainment in a depression-era economy. Most drugstores and taverns in America operated pinball machines, with many locations making back the cost of the game in a matter of days. Baffle Ball sold over 50,000 units and established Gottlieb as the first major manufacturer of pinball machines.
In 1932, Gottlieb distributor Ray Moloney found it hard to obtain more Baffle Ball units to sell. In his frustration he founded Lion Manufacturing to produce a game of his own design, Ballyhoo, named after a popular magazine of the day. The game became a smash hit as well, its larger playfield and ten pockets making it more of a challenge than Baffle Ball, selling 50,000 units in 7 months[2]. Moloney eventually changed the name of his company to Bally to reflect the success of this game. These early machines were relatively small, mechanically simple and originally designed to sit on a counter or bar top.
The 1930s saw a leap forward in innovation in pinball design and devices with the introduction of electrification. A company called Pacific Amusements in Los Angeles, California, USA produced a game called Contact in 1933. Contact had an electrically powered solenoid to propel the ball out of a bonus hole in the middle of the playfield. Another solenoid rang a bell to reward the player. The designer of Contact, Harry Williams, would eventually form his own company, Williams Manufacturing, in 1944. Other manufacturers quickly followed suit with similar features. In addition, electric lights soon became a standard feature of all subsequent pinball games, designed to attract people to the game.
By the end of 1932 there were approximately 150 companies manufacturing pinball machines, most of them in the city of Chicago. Chicago has been the center of pinball manufacturing ever since. Competition between the companies was brutal, however, and by 1934 there were only 14 companies left.
And following-up on the Wiki link, I also learned the origins of Gottlieb Premier...
"... Gottlieb was bought by Columbia Pictures in 1977. In 1983, after the Coca Cola Company had acquired Columbia, Gottlieb's pinball assets were transferred to a new Coca Cola subsidiary, Mylstar Electronics. In 1984, Coca Cola sought to divest itself of Mylstar, which also made video games. A management group, led by Gilbert G. Pollock, purchased Mylstar's pinball assets in October 1984 and continued the manufacture of pinball machines under a new company, Premier Technology. Premier Technology continued in operation until the summer of 1996, when the slackening demand for pinball forced the company to cease business. Premier did not file for bankruptcy, but sold off all its assets for the benefit of its creditors.
Today, Gottlieb's pinball games (along with those distributed under the Mylstar and Premier names), as well as the trademark on the Gottlieb name are owned by a holding group, Gottlieb Development LLC ... "