INSIGHT - CASHLESS GAMING Te three steps to Cashless
Step 1. Carded Cashless Customer uses physical player card account. Deposits and withdrawals limited to age and slot machines Step 2. Cardless Cashless Customer uses either physical player card or virtual player card with EZ Pay cashless wagering account via Cardless Connect. Deposits and withdrawals limited to cage and slot machine. Step 3. IGTPay Full service cashless wagering. The cashless wagering account can be directly funded (deposits and withdrawals) using a bank, credit/debit card, and/or eWallet via IGTPay.
towards at least phase 1-2, if not all the way to phase 3. There is such a broad consumer base of players that we’re not going to see immediate universal adoption, be that through a desire for anonymity, or reluctance to adopt new technology. There will, of course, be consumers that see the value of cashless, create a demand and choose between Casino A or Casino B, depending upon the provision of cashless.
In regards to the efficiency of cashless; I don’t think operators will enjoy the full benefits until the majority of players have migrated to cashless play, which will take time as those legacy forms of payment will remain viable options in the gaming environment.
Could you describe the current landscape; from the current position of the operators (1), the regulations in place and forthcoming (2) , any compliance issues (3) and the acceptance of players (4).
Firstly, everything has to be considered in the context of the pandemic. Covid-19 is a disruption point for this technology in the gaming industry. We saw progressive operators moving towards cashless gaming, but what we’re seeing now is a gigantic pull from the industry that didn’t exist pre-Covid- 19. I don’t think there’s going to be blanket adoption, but while many of the Las Vegas Strip properties are looking to move immediately to step three as it makes the most sense for their consumers, some of the regional players want to go step-by-step as
part of a process towards external funds.
Depending on the operator, their consumer base and their market, there are varying degrees of willingness along the path from step one to step three. The install base of IGT’s cashless solutions across the globe, shows Carded Cashless is commonplace in APAC countries. We have a lot of APAC customers already at stage one with loyalty cards connected to an account, which has been a solution in the market for many years. Culturally, we know that APAC customers are prepared to accept cashless step one.
In the US, to date, MotorCity adopted Carded Cashless technology several years ago. However, we haven’t seen the same degree of penetration as in APAC. Moving to Cardless Cashless, we see installations , California with tribal gaming operatorsthat are progressive and forward-leaning from a technology perspective, and both installed in 2019. The third step, IGTPay, which is external funds pay, has seen lottery customers and digital customers, such as Penn National, and most recently Svenska Spel in Sweden, which has 4,000-plus VLTs, make the move to VGM and mobile full cashless with external funds transfer.
In answer to the second point regarding regulators, we have had multiple conversations with the Nevada Gaming Control Board (NGCB), in which we see a similar level of excitement and enthusiasm towards cashless that’s comparable to the
operators. The Emergency Directive issued by the Governor of Nevada in response to the pandemic, specifically addressed retail stores (not casinos) and the encouragement of card payments to effectively go cashless. We are now seeing that while the original intent was solely for retailers, we are seeing the same push and enthusiasm from casino operators, with regulators wanting to be forward-looking and progressive too. I think that Nevada is seeking to be pioneering in this respect. We also work with the American Gaming Association (AGA), which has identified a number of potential states in the US that are looking to be the leaders in this space.
Looking specifically at Nevada, all three of the steps - 1. carded, 2. cardless and 3. external funds transfer - are legal, compliant and allowed within current regulations. There has been trailblazing in Nevada that has propelled the step change to a cashless as both wagering accounts and funds transfer exist in both the regulations and the law. What we’re now compelled to prove is the technology in field trials, but we’re no longer forced to advocate for new regulations, as the regulators have already provided the framework.
In terms of compliance, your third point, lottery markets are worthy of a distinction unto themselves, because within these markets the lottery is effectively the regulator. They rely on external testing bodies, but in terms of oversight and regulation, this comes from the lottery itself. And, as per tradition, Northern European lotteries continue to be forward- looking and several steps ahead of the industry.
NEWSWIRE / INTERACTIVE / MARKET DATA P49
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