InterGaming discovers how smart cards are changing gaming.
Imagine if you could combine a loyalty card with a hotel room key that also doubles up as a parking pass and stores playing data, as well as restaurant reservations and stored credit. Smart cards offer these functions now, and are increasingly being integrated within the most sophisticated casino management systems throughout the world. Cashless gaming offers seemingly endless possibilities for operators, but there are still those who are yet to make the jump.
There is no doubt that casino operators are making a concerted effort to move over to a cashless gaming system - that is the belief of Zlatko Waiss of Slovenian systems developer Advansys.
"Cashless helps casinos to approach contemporary customer needs," Waiss told InterGaming, "not only in the gaming industry, but also the business model of companies in other sectors follow this IT trend. The development of the banking system towards cashless transactions has already educated customers in using ‘plastic’ money or credit cards."
Advansys offers the CashLess module as part of its SlotScanner slot management system. This, it claims, enables supervision of the slot floor from the operational, marketing and management perspective, enhances casino profitability and increases player retention. Developed in 2008 and launched into the market this year, the module utilises RFID technology and can therefore form part of a wider player tracking system.
"It has been developed using the latest technologies and it assures the high security of money transactions, as well as being comfortable and simple to use," Waiss explained. "Additionally, players manage their cash transactions by using PIN code protection."
Smart cards are increasingly being used throughout the gaming industry, following a trend that began with TITO technology, such as FutureLogic’s GEN2 Universal printer. They, unlike tickets, are expected to define the future of cashless gaming due to the breadth of their functionality.
"TITO is the latest step in this evolution, and smart cards are the next," said Bruce Ross, chief executive officer of US-based smart card developer CardLogix. "Our operator customers tell us that a truly secure approach to cashless gaming cuts down on fraud and helps them manage essential, daily business functions, like machine placement, profiling and accounting.
"In addition, by storing and reading data from a smart card, they reduce the cost of printers, consumables and labour. The secure multi-functionality of a smart card takes cashless to a new level, with a player card that opens up guest room doors, stores and spends winnings and authenticates online identity and grants specific access."
Ross told InterGaming that most gaming customers are familiar with smart cards, particularly as they are used in a variety of other spheres.
"In these challenging times, gaming and hospitality operators are looking more than ever into capturing customer spending at every touchpoint," he remarked.
Italian company Paytec has developed an intelligent key system called Genius, which is designed for small to medium-sized casinos. As a spokesman for the company explained, the Genius system can be used as a loyalty solution, as well as a cashless one.
"Most operators are looking to continuously improve their offering to their customers and the benefits of loyalty and cashless schemes has been proven," he said. "Genius specifically wins over more conventional TITO systems in that it does not require each machine to be connected back to a central server.
"This provides flexibility in casino layout and significantly reduces the cost of installation. More generally cashless offers cost savings from the reduced need for attendants on the floor and the reliability of the key readers being much higher than that of note readers, coin mechs and ticket printers."
Statistics produced by the Nevada Gaming Control Board showed that non-gaming revenue on the Las Vegas Strip in the 2008 fiscal year accounted for more than 60 per cent of total revenue, compared to 40 per cent 15 years ago. According to CardLogix’s Ross, this is where smartcard technology comes into its own.
"A casino operation that integrates a smart card-based cashless gaming system really addresses this spectrum of revenue potential," Ross added.
Over 30,000 machines in 30 countries are equipped with Atronic’s cashless solutions, and the Austrian company launched its Chip Cash smart card technology 10 years ago in South Africa.
"Cashless gaming is definitely a major milestone in this customer-centric approach, which the majority of casino operators are focusing on," a spokesperson told InterGaming. "When using smart cards, the card can also support other applications in a casino. It can be used to pay for meals, as a loyalty card, as a hotel room key or a parking access pass."
The sheer variety of the type of applications that smart cards can be used for offers casino operators huge possibilities, while also helping to significantly reduce their overall costs.
Atronic’s spokesperson said that the cashless systems, such as the company’s Chip Cash, reduces machine downtime and operational costs by eliminating coin and ticket handling.
"At the same time, it increases revenues by providing uninterrupted play and increased game speed," she said. "Players even have the option of using the same card in more than one location within a group of casinos while still having their funds with them."
Combining cashless gaming with player tracking technology is now far easier, thanks to smart cards and the systems developed by the likes of Advansys, which now offers integrated cashless and player tracking modules.
"Basically, both use a single piece of hardware, which now provides double functionality," Waiss stated. "The advantage is the cost efficiency of the investment."
This system, he said, accelerates the flow of money, reduces costs and adds value, helping a casino to a build a competitive advantage.
There are, however, obstacles to the widespread proliferation of cutting edge cashless technologies. Setting aside the obvious operational benefits of either a ticketing or smart card system, some casinos appreciate that the sound of coins cascading into a metal tray beneath a slot machine both attracts players and forms a crucial part of many people’s gaming experience.
Logistically, setting up cashless systems is expensive, as Erik Wijma of Suzo Happ notes, particularly if machines need to be updated and operators are seeking to limit investment in these difficult times. However, he is confident that the migration to cashless gaming will take place.
"We believe that in time, all will move away from coins," he told InterGaming. "In small arcades this will take a long time, however."
Additionally, some jurisdictions either limit or completely prohibit the use of cashless systems, and the recent banking crisis has shaken many consumers’ - and even operators’ - faith in the security of electronic transactions. But is this attitude holding the industry back?
Ross believes the gaming industry has not always been "out front" with new concepts that require modifying player expectation and behaviour.
He said: "When TITO first came along, operators worried that players would give up their coins!
"The costs of upgrading magnetic-stripe systems with smart cards may seem at first expensive. CardLogix has helped many operators see that ROI is there in multiples, due to the added data management this technology provides and the increased revenue it creates throughout their operations."
"The main focus should always be to offer the best gaming experience to players," Atronic’s spokesperson said. "For some technologies it took a while to gain acceptance among players and operators. For example, the introduction of cashless gaming some years ago was taken somewhat reluctantly by several markets while in the meantime players and operators alike have been convinced by the many advantages of cashless gaming with smart card solutions like Chip Cash."
The majority within the industry, it seems, believe that the future of the gaming floor is a cashless one and that ultimately the benefits of turning to such technology outweigh the perceived negatives.
"The trend for casino business models is for using ‘electronic’ money and implementing IT technology," Waiss of Advansys asserted.
Ross agreed, stating: "The digital age of money is upon us.
"However, the pace may be slowed by the fact that at any property, several different businesses work together, as with casinos that share space with independent shops and restaurants. Each organisation has its own legacy computing systems and way of adopting technology, so that will be a factor in the cashless future."
Feature-rich cashless gaming technologies will be required to ensure operators are able to keep pace with consumer requirements, and already plans are in place for the development of new ideas.
Advansys is continuing work to improve its SlotScanner modules to meet the diverse requirements of operators and players. Atronic, meanwhile, is seeking to develop platforms that allow for the continued integration of various customer offerings such as casino, restaurant and hotel.
"This year is definitely under the focus of our next generation online floor network Crystal.net and all the extra special benefits offered when combined with our cashless, jackpots and bonusing solutions," its spokesperson said.
Ross believes that CardLogix has the components in place to offer the "optimal" cashless gaming system and is planning to continue refining its value model for the gaming industry, as well as exploring new concepts.
"We are looking at a card printing innovation that will actually show balances and feature promotions, on-the-fly, and on the card, for players as they game, shop and dine," he said. "Initial customer feedback is very positive, as operators always welcome better ways to engage their players."
