Abstract: A system and method for automatically adjusting the sound volume of a gaming machine based on the ambient noise level to an appropriate level. The gaming machine may implement an open loop control algorithm when the machine's sound output is inactive as determined, e.g., by software, or by analyzing samples from a soundboard. A closed loop control algorithm may be implemented when the gaming machine is active. Alternatively, the machine may implement only an open loop algorithm that provides volume adjustment only when the machine's sound output is inactive, in which case the adjusted volume is maintained through an active period, then adjusted again at the next inactive period. A saturation back off feature prevents the sound level of the gaming machine from escalating to, and remains at, a maximum, saturation level.