Chicago Coin was founded in the early 1930s in Chicago, Illinois, during the rise of the coin-operated amusement industry. The company quickly became a significant player in the emerging pinball market, producing early electromechanical games that capitalized on the growing popularity of pinball. Unlike some of its competitors, Chicago Coin focused on creating affordable, accessible machines that appealed to both arcade operators and casual players. Throughout the 1940s and 1950s, the company expanded its product line beyond pinball, manufacturing shuffle alleys, bowling games, and even early arcade-style machines.

By the 1960s and 1970s, Chicago Coin remained active in the pinball industry but struggled to keep up with competitors like Bally, Williams, and Gottlieb, which were introducing more advanced designs and gameplay features. In 1976, facing financial difficulties, Chicago Coin was acquired by Sam Stern (father of Gary Stern) and rebranded as Stern Electronics. Under new ownership, the company shifted its focus toward the solid-state pinball revolution of the late 1970s and early 1980s. While the Chicago Coin name faded, its influence on the industry persisted through Stern, which eventually evolved into Stern Pinball, one of the leading pinball manufacturers today.