Quoted from FlimFlamMan:Mine is not on freeplay and instead uses quarters. What does the coin lockout relay do and when/how is it activated?
It allows the acceptance of coins. Back in the day (especially pre-1967, 1968 era) it was not easy to tell when a machine was turned on but hadn't been played yet, as before the 120V hold relay was eliminated, the machine would turn on FULLY DARK. Entirely no sign of life. Later around 1967 Gottlieb removed the 120V hold relay, leaving behind only the 30V hold relay. Machines after this (EMs) powered on in "TILT", as that is actually the default state of the machine and it is "powering itself away from tilt" 100% of the time it is not tilt rather than "powering itself into tilt" the small amount of time it is tilted. Interesting way to do it, but it is how they did it. Fun fact: If you powered on a pre-1967/1968 Gottlieb and manually pressed in the 120V hold relay but NOT the 30v hold relay, it would just be in "TILT", much like how they started up later down the road. It shows the "stepping stones" of the two relays and how they function (a little).
Anyways, the coin lockout relay is ON when the machine is ON, and obviously vice-versa, they are both off at the same time. So when the machine is off, the door automatically rejects ALL quarters - and when it is on with a properly functioning coin lockout relay, it will accept them.
It sounds like yours is not working right, is stuck on, or has been partially removed. Except, you are on the "good side" of the flaw whereas you can leave it as is and be thankful that it is still accepting quarters for you and doing what you want it to do.