Banknote validators have come on in leaps and bounds in recent years, with new technology making them more accurate and reliable. Phil Clegg finds out more...

One of the many areas of the gaming industry that sees fierce competition is that of banknote validation.

There are hundreds of thousands of slot machines out there and the vast majority of them have the facility to accept notes as well as coins. So it is a lucrative hunting ground for the companies who develop, manufacture and supply validators. It is also a field in which technology advancement has played a major part in recent times.

So when a gaming machine manufacturer is deciding where to go to get this vital piece of equipment, what makes them pick one unit over another? "We have built up extensive sales and service networks since we started our bill validator business in the late 1980s," said Masaki Mitsuboshi, manager of new products and business development at JCM.

"Our brand is well respected in the industry for good quality and we strive to improve the customer satisfaction level by offering training programmes and providing service tools and documents. Our other strength is the number of currencies supported. Most of our bill validator products support more than 100 currencies."

Aidan Towey, managing director of Innovative Technology, said: "Our validators have exceptional reliability and possess and industry leading acceptance rate of 99.8 per cent, which is applicable to all datasets, making the validators suitable for worldwide use.

"Our NV200 has the ability of four-way barcode reading and has a triple lock capability for added security. It also has an MMC Card interface for currency updates and statistical data collection. Maintenance is reduced due to the location of the sensors and the customer defined multi-coloured backlit bezel with self-diagnostic capability indicates if there is a problem."

Money Controls supplies the Ardac Elite and managing director Mike Innes cites its imaging technology as its USP. "This means the whole of the bill is scanned and 200,000 data points are monitored for each inserted bill and ticket," he said. "Also important is the high-speed data processing technology that analyses the data. Together, these technologies deliver unprecedented levels of bill acceptance and fraud detection.

"The Elite’s imaging technology also enables a full-colour image of the last note inserted to be instantly displayed on either a PDA or on the machine display, providing fast dispute resolution without having to access the cashbox. Another unique selling point is the option of four-way barcode reading. With this option, players no longer have to insert tickets in a particular orientation; whichever way a ticket is inserted, as long as it is a valid ticket, the Elite reads it."

For MEI, it’s a question of value. The company’s Mark Greenawalt said: "Our success in the market place lies within the company philosophy - creating and offering value for customers. We design and manufacture products that bring advantages to the end users, casino and AWP operators, so that they can see the value in choosing MEI.

"We invested significant time and resources in market research and development to bring the Cashflow SC series to the market. Value-added trials allow operators to get to know the product at first hand. This has allowed our technology to reach the end user more quickly than the conventional method, creating higher demand.

The Cashflow series offers high and sustainable acceptance rates and excellent security. With well over half a million units in the field, it continues to excel and it has not accepted a single fraudulent note anywhere in the world. We have also brought more value to customers at entry level with the GEO stackerless note reader, which can accept notes up to 85mm in width, including the UK £50 note."

Another important product at entry level is the Trilogy from Pyramid Technologies, which is distributed by Suzo International. John Carroll of Carroll Consulting, who handles Suzo’s PR, told InterGaming: "The Trilogy’s unique selling point is its cost/benefit formula. It has quickly established itself as a leading player in the entry level market. It offers a whole range of features at a very attractive price.

"Customers can rely on high acceptance rates, in-built security features and a variety of protocols all integrated into the product. It is also available as both a stackerless and stacker note reader. Finally, the Trilogy has been designed to accept notes up to 85mm in width, underlining its flexibility."

As mentioned above, this is an area of fast-moving technology. JCM has invested in the Trident table game system that provides full automated cash management at casino tables. "This table system ultimately reduces operating overheads and increases profitability from table game revenues," said Mitsuboshi. We are also working on high-speed validation technology and banknote recycling modules that can be implemented in many different products to strengthen our product portfolio in the next few years."

True note imaging has been the focus of attention at Money Controls. Said Innes: "True note imaging provides the basis for superb performance and significantly improved diagnostics via USB connectivity."

Latest advances at Innovative Technology include the integration of the core digital and analogue electronics into one high-performance application specific integrated circuit. "This allows us to use the next generation of SPF technology," said Towey. "Another development for the NV200 is the use of a revolutionary reverse stacking system that gives the validator the ability to fit the same capacity of notes into a smaller design."

The major technological advantage of Pyramid’s Trilogy is the marrying of product complexity with simplicity of use. "Pyramid have designed a card configuration that allows customers to choose the interface and make any required alterations quickly and effectively," said Carroll. "Furthermore, the programming software allows simple reprogramming to different currencies, which is essential for gaming and amusement manufacturers who focus on export markets."

MEI’s Cashflow has been further advanced thanks to Easitrax. Said Greenawalt: "Easitrax allows operators to simply track the amount and value in the cashboxes. The in-built RFID chips offer exact details of note drop. This saves operators time and money on the note drop."

So what are the major challenges to be faced when designing a validator? "Newer and more innovative features are required at lower cost," said JCM’s Mitsuboshi. "in addition, we need to design a product very carefully to protect from various fraud activities which are common in some parts of Europe."

"The first step in designing a successful validator is to understand the actual requirements of the customer," said Innovative Technology’s Towey. "Then the major design challenge is to create a validator that incorporates key features and appropriate technology while making it the best value for money possible. It is vital to maintain a high acceptance rate and continually aim to speed up the validation process without compromising our consistently high reliability or seamless note path."

As far as Money Controls’ Innes is concerned the main challenges are acceptance rate, security and reliability. "These are the key challenges, but cost is always an overarching consideration. Reliability comes from experience and we have been designing money-handling equipment for over 40 years. Acceptance rate has traditionally been a trade-off with security, i.e. fraud detection. The imaging and data processing of the Elite means this is no longer the case; it delivers exceptional first-time acceptance and the highest level of fraud detection."

MEI’s Mark Greenawalt believes creating value for the end user is the biggest challenge. "This can only be done with a sharp and deep understanding of the market, coupled with a strong development team. For example, the fact that the Cashflow SC’s design allows older, worn and true notes to be accepted means that operators are seeing more cash in the cashbox. We see the major challenge as an opportunity to create more benefits for the end user."

On behalf of Suzo, John Carroll said: "Regardless of the market segment, the challenges remain the same. The major features are high acceptance of notes of all descriptions, whether new or worn, strong security features to prevent manipulation and fraud note acceptance, simple maintenance for the operator, simple reprogramming for the manufacturer, durability and competitive pricing."

As far as current trends in the sector are concerned, Mitsuboshi believes downloading and server-based games will gradually replace traditional gaming machines and that connectivity will be an important feature for bill validators. "In the casino environment, TITO is widespread and operators need bigger cashboxes." And the future? "High-speed validation, banknote recycling and cashless payment systems are the key technologies for JCM over the next five years," he said.

Server-based gaming was also recognised as the major trend of the moment by Mike Innes. "In the next few years it will transform the industry," he said. "Thanks to the Ardac Elite, Money Controls is well placed to take advantage of this trend. For instance, full image scanning enables bill and ticket images to be instantly transmitted to back office systems. We are working on a number of new software features which will enable operators to add value to their SBG customer interface."

Aidan Towey recognises that segments within the industry are not as clearly defined as they once were because markets are beginning to merge due to issues within government legislation. "There is also a shift in the requirements for segments such as AWPs, as their requests are rising towards those in the casino industry, including dealing with high volume transactions which require higher speed, security and reliability. The NV200 is aimed at satisfying such demand."

He believes his company’s dedicated research team is vital to its future. "They are constantly evaluating new sensing and processing solutions. We are continually expanding this department by recruiting physicists, mathematicians and material scientists who are developing new validation solutions that represent the best value for money available."

John Carroll is mindful of the fact that the number of players in the market continues to increase. "This is giving customers more choice, allowing the market to sort the wheat from the chaff. In the longer term, we believe we will see market players not only entering the market, but also exiting it.

"The end user is becoming more sensitive to and aware of the note readers in machines. The market for note readers continues to grow as gaming laws worldwide increasingly understand the benefits of allowing note readers in gaming products. One only has to look at the effect that readers have had on the casino slots market. Another example is the German AWP market, where note readers are now becoming the norm. Only two years ago it was somewhat exotic to place a banknote reader in German AWPs.

"The next market trend is on the payout side in markets where TITO cannot be implemented for whatever reason. Thus, we can look to note payouts, which is especially relevant for higher payout machines. This can be done in two ways - either by a separate note dispenser or by a note recycler. We foresee a trend towards these products in the future."

MEI’s Greenawalt also cites the trend towards TITO in Europe as a current shaper of the sector. "In some markets TITO is not possible. Here the market is looking for alternative solutions. The solution we offer is with note payout via note recycling. The Bank Note Recycler can recycle four separate notes. Furthermore, end users have the unique advantage with the BNR thanks to the loader.

"A note recycler can only pay out notes back that have been entered. If the requirements to pay out a particular note are higher than those entered, then such a product soon reaches the end of its capabilities. We have solved this potential problem with our patented loader. Here up to 300 notes can be stored in the loader to be recycled upon demand. It is this flexibility that brings value to the market, especially for higher payout machines.

"Also making a difference is our recently introduced Bunch Note Feeder, which allows up to 50 notes to be placed into the note reader at one time. The BNF then enters them one at a time into the note reader."