Cashless Gambling: A Sluggish but Inevitable Shift
Online Gaming Transactions Shift Towards Digital Payment Solutions
Planning my trip to the States, the first thought is, of course, the passport, followed swiftly by the wad of cash. After all, I'm just a Canadian who needs to tip the hotel staff and airport bellhop, right? Wrong! Perhaps it's time to upgrade from the Stone Age and familiarize myself with cashless payments.
Being surrounded by a crowd of Gambling Gen Zs, I'm no stranger to the reluctance of my peers to engage in face-to-face conversations. But this aversion to real interaction extends beyond everyday socializing – it appears the whole gambling world is pivoting towards the digital realm.
So, do Casinos lead the way in cashless payments? Not quite yet, but we're not far off from the world inhabited by those who've never seen The Sting. In a recent article by CDC Gaming, casinos were described as being in a "time warp," with cashless systems "lagging in implementation."
Gary Ellis, CEO of Koin Payments, Ellis Island Casino, and Marker Trax, confirms the benefits of cashless gambling – it reduces the risk of money "walking" to another property, but adoption is far from swift. Predicting that 60% of tribal casinos would offer cashless gaming by 2025, Tim Cotton, spokesperson for the National Indian Gaming Commission, looks a tad too optimistic, as 2023 saw only about 5% of operators making the switch.
However, progress is steady. The broader U.S. consumer market is increasingly shifting towards digital payments, with nearly half of consumers abandoning cash for weekly purchases[2]. But why has the gaming industry been hesitant to embrace this trend? The answer lies in regulation and responsible gaming concerns.
Various payment methods, such as Trustly, are widely available for online gambling, yet some operators still prefer conventional alternatives. Across platforms, standard cashless methods include e-wallets, bank transfers, and even mobile payments[3]. However, government agencies and gambling commissions have cautioned operators to restrict access to cashless gambling due to potential risks of excessive spending.
Yet, despite these hurdles, the industry's growth in cashless transactions is commendable, as it promises greater visibility into player spending habits, enabling operators to curb problematic gambling before it spirals out of control. In fact, Forbes Magazine salutes the industry for striking the balance between facilitating cashless transactions and maintaining responsible gaming standards.
As more states adopt regulated gaming, security measures will continue to be prioritized to combat fraud attempts and ensure compliance with each state's unique regulatory framework. The younger generation, who are driving the demand for digitization, will further bolster the push towards cashless transactions.
In the end, cashless gambling may be a slow burner, but it appears to be an inevitable development within the industry. So, better start practicing smiles and small talk, because the days of reaching for your trusty money clip might be numbered.
WARNING: This article discusses gambling, including but not limited to the terms "online gambling," "casino," and "sports betting." If you or someone you know struggles with gambling addiction, please seek help from resources such as the National Council on Problem Gambling (www.ncpgambling.org) or call 1-800-GAMBLER.
- Adoption of cashless payments slow in gaming industry, but seemingly inevitable
- Moving Beyond Cash: The Rise of Digital Everyday Transactions
- Common Casino Deposit Methods
- Pavilion Payments Wins Contract to Install Cashless Wagering at Rivers Casino by the end of 2022
In the gaming industry, casinos are yet to fully adopt cashless payments, but this trend seems inevitable, as evidenced by the increasing shift towards digital transactions in the broader U.S. consumer market. Despite regulatory and responsible gambling concerns, the growth in cashless transactions promises greater visibility into player spending habits, which can help operators curb problematic gambling.
