The Coming of
CASHLESS
Many patrons will demand that casino transactions , like others in their lives , be cashless , but the two methods will coexist By John Brennan
Former New Jersey Governor Chris Christie , the keynote speaker at the annual Global Gaming Expo ( G2E ) in Las Vegas in 2019 , used a compelling prop to make a compelling point to the audience . Christie noted that his 26-year-old investment banker son “ doesn ’ t have this ,” as he took out a well-stocked money clip .
The point was that while his son has disposable income , he doesn ’ t carry cash with him . That led to his being disappointed , for example , when — after receiving his car from a valet after a wedding reception — he was unable to offer a tip because the valet did not have a Venmo account .
Christie said the U . S . gaming industry must adjust to a new generation of such potential customers on numerous fronts . “ If you don ’ t make mobile easily accessible to them , then they will not bet — they just won ’ t ,” Christie said . “ And don ’ t make them go to a casino to sign up , or to collect their winnings . They just won ’ t use your product .”
So , three and a half years later , how much has the industry done to heed Christie ’ s advice ?
An overriding theme in interviews with industry executives for Global Gaming Business can be summed up by Leighton Webb , vice president and general manager of online sports betting and iGaming for PayNearMe , as : “ Cash isn ’ t going anywhere .”
“ Although ‘ cashless ’ is a hot topic , cash will continue to be an important tender type for a certain segment of the audience ,” Webb adds . “ For a variety of reasons , some players will always prefer to use cash , and eliminating cash entirely would alienate that segment of the consumer base . It ’ s a tangible , reliable form of payment that will always have a place on the casino floor .”
Or as Christopher Justice , CEO of Pavilion Payments , Inc ., puts it , “ Casinos are beginning to implement cashless solutions , but cash still tends to be a popular method for many players .”
So it turns out that “ cash ” versus “ virtual ” is not an “ either or ” issue — it ’ s more like an “ and .”
That said , Sightline Senior Vice President Jonathan Michaels points out that “ around 50 of the 1,000 casinos ” in the U . S . already have gone cashless .
“ When 41 percent of Americans don ’ t use cash in a given week and 58 percent of previous-year casino visitors want to use digital payment options , it is important that we give our customers the option to pay how they want ,” Michaels says .
Dave Kubajak , senior vice president of sales , marketing and operations for JCM Global , says , “ Casino players are consumers , so to understand how consumers use cashless options in a casino , we can take a lesson from consumer behavior in other businesses .
“ When we look at it through that lens , we can see that consumers have a lot of choices as to how they pay for things at the grocery store , at the gas pump , at the mall , at the movie theater , etc . Consumers like to have choices , and that will continue to be the case when we think about cashless gaming at casinos . Our industry ’ s own history with cashless gaming also informs this view . The first wave of cashless gaming appeared as ticketing . Players could use tickets or cash , and the two have existed side-by-side since tickets came onto the scene .
“ There will be players who will use digital wallets , others will use ticketing , and others will pay with cash . That ’ s simple consumer behavior . Given that , our philosophy is that operators will be most successful when they give players the choices and options they expect in virtually every other consumer
“ Our philosophy is that operators will be most successful when they give players the choices and options they expect in virtually every other consumer transaction .”
— Dave Kubajak , Senior Vice President of Sales , Marketing and Operations , JCM Global
14 Global Gaming Business MAY 2023