Technology has simplified so many parts of our lives, making transactions and purchases easier than ever, and gambling is no exception. A Las Vegas-based company recently showcased new cashless gambling technology that allows gamblers to connect slot machines directly to their bank account via QR code. Is making gambling easier a net positive for Nevada?
What Is Cashless Gambling?
Cashless gambling has been a trend for some time, and this QR-based version goes even further to eliminating steps between a player’s money and their ability to spend it, since there is no need to visit an ATM or click through an app to transfer funds. Acres Manufacturing, the company behind the technology, says it conducted a six-month study that found cashless players purchased 92% more gaming credits per session and are much more likely to reup. To put it in perspective, a property in Miami using the technology reported a $10 million revenue increase in just one year.
Aside from increased revenue, the system also collects individual player data that can be used for targeted marketing, making it easier for casinos to lure back gamblers.
Nevada gaming regulators approved the technology in August and it’s expected to launch at Las Vegas properties in January.
On Responsible Gaming and Addiction
With any form of gambling comes addiction concerns, and some advocates worry that removing “friction points” can exacerbate the problem. According to the American Psychiatric Association, more than 80% of people with a gambling addiction never seek help, and 70% of those who do seek treatment eventually relapse.
State regulators will have their work cut out for them once the new machines are switched on. Alan Feldman, a gaming industry veteran and expert on responsible gambling at UNLV, told us that cashless gaming could give us a treasure trove of real world data — a key part of putting guardrails in place to protect players — as long as there is also the funding to collect and analyze it. On the other hand, as co-host Dayvid Figler points out, large gaming corporations with even more data about our consumer habits doesn't necessarily inspire confidence, either.
There are valid concerns, but Feldman is not ready to call the technology a bad thing.
The Positives
On a larger consumer scale, Las Vegas relies heavily on tourism and gambling revenue — much of which has been declining recently. It can be argued that implementing new technology early helps the city beat out the competition and attract more of that money.
Josh Swissman, GMA Consulting founding partner and gaming industry expert, says increased data collection could also create an opportunity to better monitor criminal activity, fraud, and problem behavior.
There’s a lot of questions surrounding new QR-based cashless gambling technology, but its effects remain to be seen.
The National Problem Gambling Helpline at 800-522-4700 is available 24/7 and is fully confidential.
