By Bill Sokolic
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Cashless Crescendo
The ongoing migration to a cashless casino experience
By Bill Sokolic
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Every time you use a debit card to buy a couple of books at Barnes & Noble , you ’ re going cashless . Every time you tap your card at Giant for groceries , you ’ re going cashless . When you hand your Master- Card to an Old Navy cashier — notice the word “ cash ” in the job title — you ’ re going cashless . When you order dinner delivered by DoorDash through a phone app , you ’ re going cashless . Yes , the world has embraced a cashless society for several years running . But a segment of the patrons who visit casinos — most of whom have no qualms with any of the aforementioned transactions — have been slower to catch on to the same cashless world inside gambling resorts .
“ The industry itself was built on cash , and so it ’ s more of a foundational change ,” Koin President Gary Larkin says .
Sometimes old habits die hard . But they do pass on . In recent years , gamblers have fed bills into slot machines , and when they “ cashed ” out , the machine spit out a ticket instead of cash . Ticket-in / ticket out ( TITO )— cashless . Still in play today . The musical clink and clatter of coins dropping into the hopper , piped in .
“ The ( TITO ) system , in many ways , serves as a precursor to cashless payments ,” Larkin says .
It ’ s not just reluctance on the part of casino-goers that delays acceptance by some . Gaming is such a highly regulated industry that by its nature it has to jump through regulatory hoops to move forward . The same holds true for the other partner in a cashless casino world — the banking industry .
“ Companies that supply the casinos with gaming- or revenue-related equipment or software must be licensed as casino service industry enterprises ,” says Allison Inserro , a spokeswoman for the New Jersey Division of Gaming Enforcement ( DGE ). “ The hardware or software must also be submitted to DGE ’ s Technical Services Bureau for testing to review and analyze the product .”
The DGE also works with the New Jersey Department of Banking and Insurance to ensure that the providers of cashless systems have obtained proper licensure , Inserro says .
In the context of the gaming industry , cashless transactions refer more often to in-person casino resorts . Within the confines of the resorts , you have a multitude of products , services and cash equivalent options spread out across your entertainment experience , says Victor Newsom , senior vice president , product management , payments solutions for Everi .
“ Gaming ’ s home base has always been physical casinos , so it ’ s natural that cashless would start there ,” Larkin says .
But a lot of activity and interest is moving toward other avenues like online gaming , sports wagering , e-sports , and more , he says . “ Cashless technology was developed to improve the consumer and operator experience , and so as more activity moves toward those other sectors , cashless will ultimately follow suit .”
Help Me , Help You
Cashless systems have a broader calling beyond convenience for players . “ They allow casino operators to better understand their customers ’ behavior , which can be important from anti-money laundering and responsible gambling standpoints ,” says Josh Swissman , managing director and founding partner at GMA Consulting .
For many reasons , some regulatory , some security-related , the cashless transformation of gaming at its most intimate level requires additional echelons of protection . Swiping or tapping a card alone doesn ’ t cut it .
“ What companies in our sector have done is develop an ‘ intermediate ’ step between the consumer ’ s account and the gaming floor that comes as close as possible to a simple tap or swipe while staying within all regulations and security standards ,” says Steve Ritchie , Pavilion Payments ’ chief revenue officer .
Solutions like Pavilion Payments ’ VIP Mobility app , launched in 2021 , allow patrons to fund games — and eventually entertainment , food , and other non-gaming goods and services — by scanning QR codes at the slot machine or table game from their mobile device , which is a familiar way to offer a cashless experience .
By linking their VIP Preferred account to the VIP Mobility app , customers can connect as many as four checking accounts to their play . “ With a single sign-up , they gain access to more than 400 in-person and online gaming institutions across the U . S .,” Ritchie says .
The process of using a Koin digital wallet in the gaming space is functionally similar to using an app on your mobile device to purchase something at a store . Your bank account or other preferred payment is linked to the digital wallet , and you can use it to pay for specific property services — from gaming to dining to show tickets , Larkin says .
24 Global Gaming Business JULY 2024