Everi’s cashless gaming wallet went live Thursday at Penn National Gaming’s third Pennsylvania casino, with plans for it to be added at Penn National locations across the country.
Penn National, with 43 properties in 20 states, intends to install Everi’s digital wallet for use at more than 30,000 of its slot machines, said financial analyst David Bain of B. Riley Securities. He said that is more than twice as many as what Everi had in operation last week. An analysis that Bain released Thursday said the companies plan “an aggressive installation schedule” as part of Everi’s “first mega-multi-property, multi-jurisdictional order.”
Acres Manufacturing Co. announced Thursday that its Foundation casino-management system is enabling cashless gaming at Penn National’s just-opened Hollywood Casino York in Pennsylvania. It was already in use at Hollywood Casino at Penn National Race Course near Harrisburg and the Meadows Racetrack & Casino south of Pittsburgh.
The cashless wallet used at the three Pennsylvania casinos is marketed as mychoice. Everi said the mychoice wallet will be introduced at other Penn National properties pending regulatory approval.
Acres Manufacturing founder John Acres said in the company announcement that the Foundation system interfaces with the mychoice wallet to transfer funds from player accounts to slot or table games.
Everi’s digital wallet launched in December at WinStar Casino in Oklahoma, where it’s known as the WinStar Wallet, and at Seminole casinos in Florida, which branded it as the WildCard Wallet. Everi says the wallet can be used for gaming or non-gaming purchases, as well as for online and in-person bets. It also can work at affiliated properties in different jurisdictions.
For players, using the CashClub Wallet is similar to an online shopping purchase. Money can be moved into it via a credit or debit card, electronic funds transfer, or e-check. The wallet lets a player buy or cash in slot credits or table game chips seamlessly and securely stores credit and debit cards. Users can set limits on their spending and be flagged for self-exclusion.
Bain said Everi’s wallet will be used at Penn National properties slated to go cashless. He noted that Everi gets about 40 percent of its revenue from casino financial technology and leads the market with about 60 percent of multi-year contracts.
“Benefits of an ongoing transition to cashless for casinos are multi-fold, (including) intelligence (better player tracking), increased velocity of play potential, lower costs, and portability of loyalty,” his analysis says.
Bain said Everi benefits from a broader market, including increases in financial transactions for which the company receives payments.
“Instead of one-way transactions (access to slot play, for instance), with the digital wallet, a player can replenish her account or source of funds with digital-wallet currency after usage – a new transaction opportunity. Further, portability of a digital wallet allows for transactions in all four corners of the casino resort,” the analysis said.
“Finally, the digital wallet allows for transactions outside the four walls of the casino for at-home wagering or more.”
Bain noted that North America is home to more than 150 million people with casino player cards, “representing a significant captive patron for digital-wallet opportunities.” The analysis reiterated his buy recommendation for Everi, with a price target of $39 per share. Everi was trading around $23.30 before Thursday’s market close.
A “Quick Thought” analysis by Truist Securities of Atlanta said Penn National’s move toward cashless transactions “highlights their leadership in the sector with omni-channel ramifications, while we could see this accelerating competitors’ moves to cashless.” Truist said Everi remains rated as a buy, “the best and most material way for investors to play the cashless trend today.”
Penn National’s $120 million York casino, the second of five “mini” or satellite casinos in Pennsylvania, opened Thursday with more than 500 slot machines, 24 table games, and Pennsylvania’s first retail Barstool Sportsbook. The 80,000-square-foot facility has 290 employees.
Todd George, executive vice president of operations for Penn National, touted the “3C” technology of York facility’s cardless, cashless, and contactless mywallet, calling it a “revolutionary enhancement for our industry.”
