Music & Games

Digital transformation takes gaming by storm: Redemption links to multiple touchpoints

Gaming equipment manufacturers have introduced mobile wallets that allow guests to create digital tickets by scanning a voucher or using their mobile account. Such tools allow guests to access funds at the gaming table, game machine or a retail destination.

Photo courtesy of the American Gaming Association.

August 22, 2022 by Elliot Maras — Editor, Kiosk Marketplace & Vending Times

One economic sector that has embraced digital transformation as much as any has been the gaming sector, which has been on a post pandemic boom. Past the halfway point, 2022 remains on track to surpass 2021 as the highest-grossing year in gaming industry history, according to the American Gaming Association.

As a sector that includes multiple points of customer interface — game machines, gaming tables, check-in stations, foodservice/hospitality destinations, entertainment venues and even conference centers — gaming has unleashed rapidly expanding digital ecosystems.

Changes in consumer buying habits, no doubt, have propelled this digital expansion. In addition to contactless and mobile payments, consumers are embracing to peer-to-peer digital payment platforms to instantly move funds into and out of their bank accounts.

As a result, a number of gaming equipment manufacturers have introduced mobile wallets that allow guests to create digital tickets by scanning a voucher or using their mobile account. Such tools allow guests to access funds at the gaming table, game machine or a retail destination.

Tying redemption to venue touchpoints

Nasr Sattar

Nasr Sattar, senior vice president of strategy and innovation at NRT Technology Corp., a gaming hardware and software provider, said such tools allow winnings redemption to be part of a casino's digital ecosystem that can include games, guest's wallets, loyalty and other points of contact, including guest services and foodservice.

"The safest and securest method and the thing that all (gaming) customers like is to get their money back," Sattar told this website in a phone interview. "And what that means is you want that money in your bank account."

NRT Technology Corp. recently teamed with AptPay, a fintech processor, to introduce "smartsend," a digital solution that allows casinos and other venues to instantly disburse winnings to a player's bank account, prepaid card or mobile wallet.

The 2Pay self-serve kiosk from CountR GmbH allows a player to buy credits on a "ticket-in/ticket-out" transaction.

Cashless redemption

In a similar move, Global Payments Gaming Solutions introduced its VIP Mobility, an app that lets guests create digital tickets scanning a voucher or using their VIP e-check account. The user pairs their mobile device to any game at any location by scanning a QR code, enabling them to reload from their phone and review funds.

CountR GmbH, a provider of cash handling systems for casinos, introduced its 2Pay self-serve kiosk that allows a player to buy credits on a "ticket-in/ticket-out" transaction.

Buying credits on a TiTo ticket with a debit card instead of processing a cash withdrawal at an ATM eliminates the need for cash, said Kai Buenger, global sales manager, in an email exchange. It also allows for cashless services to be provided in high traffic areas for guest convenience.

On the operator's end, the machine's central management server supports functionalities such as configurable staff access levels, remote software uploads, live accounting and online service alerts, all of which benefit cost efficiency and maintenance.

While reducing cash from the operation reduces costs, Sattar of NRT Technology Corp. said cash will not be eliminated.

"You've got to offer multiple channels," he said. "The winners will integrate digital and brick and mortar experiences."

What pace of change?

Christopher Justice, president of Global Payments Gaming Solutions, doesn't see traditional redemption machines being replaced any time soon.

Christopher Justice

"Redemption entails players redeeming cash-out vouchers at kiosks for cash or various touchpoints for play or value," Justice said in an email interview. "Thus, redemption kiosks and other touchpoints will be required to handle that activity. Physical redemption will lessen over time as more players and casinos adopt cashless solutions and as younger players enter the market that are more likely to embrace cashless and mobility-based solutions."

Kevin Williams, co-founder and technology director at Spider Entertainment, a provider of out-of-home entertainment for retail, agreed.

"The need for redemption is still a matter of much investment and would be difficult to see abandoned so easily," Williams said in an email. "That said, with the deployment of cashless convenience stores that remove the need for any physical cash handling or contact with payment platforms, but achieved all via an app and machine learning, the questions are obvious that this technology will find a home in the gaming sector."

Kevin Williams

Multi-function machines

As for solutions that combine redemption with cash advances, bill breaking and ATMs, Williams is less convinced that such concepts, which are not new, will find application soon.

"It is difficult to judge the comfort of the gaming audience to a combined payment and winnings (advancement) systems," he said. "At the same time the need for them to be physical payment interchange through ATMs is a difficult combination."

There are also government regulations to be considered before combination machines can replace existing equipment.

"We need to be mindful that some legislations demand a clear paper trail regarding money in and winnings out, along with the clearance of any remaining payments accumulated," Williams said. "Lawmakers will be much more attuned to the needs of the new audience for frictionless payment, but also be mindful of the needs of operation and regulation."

Justice of Global Payments Gaming Solutions is more optimistic about machines that combine transaction functions.

"There will continue to be emphasis on offering multiple transaction types at unattended touchpoints, which helps with the amount of foot traffic for the cage and becomes an extension of the casino cash access environment," Justice said. "Usage of unattended service points are on a rapid rise with the increase of utility and versatility. We see the addition of this technology at everyday locations like airports and fast-casual dining."

Sports betting emerges

Williams does see the emerging sports betting kiosk as ripe for "hybrid" game machine concepts.

"The difference between the ticket printing redemption kiosk and the sports betting terminal is a big one, but there is a process of creating a hybrid," Williams said. "We need to understand that all people carry around what could be with them their own possible sports betting platform through their smart phone. But there are limitations to their interoperability towards usage alongside already established physical kiosks in locations. It seems inevitable that the online betting platforms will cross over into this application."

On this point, Justice of Global Payments is more reserved.

"These touchpoints provide different functions, have different dwell times, and are often located in different parts of the casino floor," Justice said. "They are effective at supplementing the traffic at the betting windows in the same way cash access kiosks are effective partners for the casino cage and staff, but they are not homogenous.

"Redemption kiosks are masters in speed and efficiency of turning cash back to the casino floor. Placing bets or managing loyalty accounts is more time consuming and would considerably slow cash to floor churn if done on the same devices."

Justice does, however, foresee more self-service for casino operators through redemption kiosks with mobile applications that can extend functionality to process jackpots.

"The ubiquity of these kiosks across a casino floor makes it easier to more quickly pay out jackpots because they are placed in convenient spots throughout the enterprise and create efficiencies for the slot management teams," he said. "Utilizing specialized mobile technologies provides a great bridge to process jackpots at the point of opportunity while leveraging existing touchpoints for payout disbursement without inordinate dwell times."

Photos provided.

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