Step 2: Push the Coin Return knob -- HARD and FAST!
Flick the coin return knob hard, fast, and over and over. There's a magnet inside that grabs Canadian coins and slugs. A wiper tries to wipe the coin off of the magnet, but it rarely gets all the way to the far edge of the magnet, so a little bit of the coin holds on. When you release the coin return, the coin just slides back on to the magnet, and you're right back where you started.
Instead, flick the return knob hard and fast, over and over as fast as you can, and try to fling the coin beyond the edge of the magnet. The coin will drop in to the coin return like it's supposed to do. Repeat as needed. If that doesn't work . . .