A paper jam detector for a gaming machine. A paper jam detector is integrated with a gaming machine printer that produces cash-out paper vouchers, print-on-demand player tracking cards, or tickets. A paper jam detector may be entirely self-contained and include all of the mechanical, electrical, electronic, and software components used to detect a paper jam and communicate with a gaming machine or a host. A paper jam detector may also be distributed throughout a gaming machine printer, thereby utilizing various components of the gaming machine printer's printing mechanism and control module. The paper jam detector detects paper jam conditions by monitoring the movement of the paper through the mechanical portions of the gaming machine printer and signals to the gaming machine printer, gaming machine, or host when a paper jam occurs.