Best Markets
Current markets , future markets , commercial casinos , tribal casinos — payment operators have some challenging choices to make in the years ahead .
“ The good news — and it ’ s not just at the payments level , it ’ s more broadly — is that Everi has been investing for years in the infrastructure needed to service multiple channels simultaneously and consistently ,” Newsom says . “ I would favor that position in the U . S ., because land-based is so dominant . The ability to transition from land-based-only to integrated omnichannel , as a model , is something where Everi is already leading the way . While capital is not unlimited , it has been judiciously spent by Everi over a long time horizon .
“ If you have not done that , and if you ’ re not ready for that , you will have to make a choice of where to specialize , because the pressure is going to be very high . If you are not able to take the approach that we have already taken at Everi , it is likely that you will need to make some choices to be strategically focused and capital-efficient . Then , if you if you ’ re in that position , you will need to align or ally with other specialists in order to provide the integrated guest experience that casino patrons will demand .”
Acres says the main point to understand is that the user interface of the future is the player ’ s mobile device . “ Funding , loyalty , bonusing and more will all flow through mobile . Therefore , any migration to cashless becomes a new market with exponential growth potential . Cashless is the glue that holds the mobile interface together .”
Justice adds , “ While new markets represent an opportunity for growth , there is still demand in more established areas . Similarly , while there are differences between commercial and tribal gaming — namely in the emphasis on iGaming and in-person gaming , respectively — there still is demand for modern payments technology .
“ In fact , this is where Pavilion Payments has a clear advantage . Our solutions enable brick-and-mortar and online gaming payment operators to elevate the patron experience by providing a seamless payments process .”
Webb says his company ’ s MoneyLine platform caters to multiple markets . “ For emerging digital operators or tribal / regional operators who are moving into the digital space , it ’ s an all-in-one platform that combines every major payment type , which allows new online operators to get to market quickly ,” he says . “ For mature operators , MoneyLine has the flexibility to offer certain features or tender types that the operator is missing to fill in the gaps in their payment stack .
“ So for PayNearMe , we work with a diverse book of operators and have plenty to offer , no matter the maturity level of their online operations . The difference , strategically , is that emerging operators typically want a packaged , complete solution , while larger and more established operators may only need supplemental pieces .”
Role of Regulators
For Everi ’ s Newsom , the significance of regulators is “ an underappreciated reality .”
“ We have decades of education experience and precedence that landbased regulators have absorbed and accrued in the course of following their mandate ,” Newsom says . “ Many of the ones I have talked to are very interested in facilitating digital transformation — but they also take their protection role very seriously .
“ My prediction is that on each front , the industry will consolidate on two to three primary suppliers — whether through ( mergers and acquisitions ) or attrition .”
— Noah Acres , Principal , Acres Manufacturing
“ Yes , they will play a significant role in accelerating as well as shaping how these changes are made . If we do not align well as an industry , then there will be a tremendous friction — and we ’ re already seeing it today with card schemes . Anyone who has serviced the e-commerce world can tell you , when you connect to the brick-and-mortar world , everything changes .
“ The understanding that cash can walk in the door and now be played online , or funds can be moved in online and walk out the door as cash , are things that current systems and regulations are simply not well-structured to address .
“ Everi has been on the forefront of working with many of those individuals and entities in trying to create a rational structure that makes sense — one that is workable , enforceable , etc .— yet , at the same time , isn ’ t too restrictive for entry , or specific on technology , and doesn ’ t open the door to fraud .
“ This is a very complex area , and we spent a lot of time on education . The whole industry needs to spend a lot of time on education while working with regulators .” Justice reinforces that theme . “ Gaming regulations have always been extremely rigorous — and for good reason ,” he says . “ Now , in the age of digital transactions , regulators are right to raise concerns on behalf of patrons . Specifically , AML and KYC measures are of special importance to gaming operators and patrons . Pavilion Payments actually offers solutions designed to help casino operators with these very issues .”
Webb says he doesn ’ t believe that the regulatory environment will have a major impact on competition . “ PayNearMe is committed to following regulatory best practices , while using our internal resources and expertise to help our clients navigate the complex changes in our industry ,” he says .
Acres agrees , adding , “ Some jurisdictions have been a little slower than others , but I think within a few months , the regulatory playing field will be even enough that the rules won ’ t favor one solution design over another .”
“ There is a tremendous amount of pressure to be more digital ,” says Newsom , “ whether it ’ s crypto , the Federal Reserve , real-time payments or traditional banking schemes . In gaming , we ’ re expected to have consistent journeys across brands , whether it ’ s iGaming , sports wagering or traditional land-based gaming .
“ I ’ ve seen a lot of operators and regulators say , ‘ Well , until the public is demanding this , we ’ re not going to move ’— but we know it takes years to move , once we decide to do so .
“ So we need an appreciation for the speed that will be required from us to digitize , evolve , and grow services , while also being informed , judicious , and responsive . As always , if the consumer does not get what they want , where they want , how they want it from us , they can always seek their entertainment value from the markets that will do that .”
16 Global Gaming Business SEPTEMBER 2023