Panel moderator Noah Acres from Acres Technology kicked off an afternoon panel at the IGA conference and trade show on digital wallets by mentioning that when he told his Uber driver on the way to convention that he was speaking on cashless gaming, she asked him, “Are you guys still working on that?”
That pretty much summarizes the view that many operators have about the subject. Everyone can appreciate the benefits of eliminating cash, tickets, impress banks, and change booths, not to mention the possible reductions in labor costs. But despite the promise, the technology still remains more of a goal than a reality. However, an older simple strategy may get things moving forward: direct funding.
Jacob Lanning, senior director of Business Development at IGT, said, “It’s not a super unique or new functionality. It’s just never been widely adopted. Essentially, it allows players to very simply use their phone as a sort of mobile checkout device to buy slot credits.”
Operators simply place a QR code on or near each slot machine. Players scan the code with their phones, then using any variety of apps can download credits directly to the slot machine. It’s one of the most “frictionless” cashless solutions.
Ted Keenan, VP of Product Management for Gaming Systems at Aristocrat Interactive, was also enthusiastic about direct funding, but felt there was still a place for independent digital wallets. “The wallets still have some value. They’re great for building loyalty. They’re great for cross-channel play.”
Unlike direct funding, players can use a digital wallet on slots, at the restaurant, the sports desk, or even at home for online gaming and shopping. Keenan said, “A digital gaming wallet will be a better place in that scenario.” That’s because direct funding works only at the slots for now and, even then, can’t be used to pay out large jackpots.
Skyelar Perkins, the Corporate Senior Director of Operations at the many Choctaw Casinos & Resorts in Oklahoma, is a supporter of cashless, but pointed out that adoption could be difficult for some. “You have to make sure you truly understand how direct funding works, then make sure you have a whole plan in place, from marketing to how you communicate to your customers. We’ve seen some places where they’ve been using cashless, but the communication is poor. And that just doesn’t work.”
Payment providers are also important partners in making this all work. Kaleigh Thompson, the VP of Business Development at Pavilion Payments, said the goal is to make the whole process easy and frictionless. “For players, it really needs to come down to a convenience factor. It needs to be easy to use the first time and so simple they want to use it again the second time.”
When asked by an audience member why it has taken so long for gaming to catch up to others, such as the corner 7-Eleven, Keenan noted that gaming transactions are different. “Players are making dozens, may even hundreds, of funding moves at a slot machine, whereas most retail transactions are far more limited.”
There has also been resistance from regulators and others about cashless leading to more problem gambling. However, the panelists were in agreement that digital wallets and direct funding may actually help spot and deter addiction problems. The strong digital trail of all gaming transactions could help spot players with problems. Australia, which seems to lead the world in enforcement aimed at curbing problem gambling, is making cashless mandatory for its ability to better track spending issues.
Acres kept the discussion moving forward nicely and it seemed the consensus was that once players find digital wallets and cashless virtually frictionless, it will take off. It may not be tomorrow, but it’s closer now than ever before.
