Cashless gaming has seen slow adoption, but industry experts believe it will grow as consumer demand rises. Insights from the Indian Gaming Association tradeshow reveal key trends and challenges ahead.
Despite the slow adoption of cashless gaming solutions, recent developments, such as Resorts World Las Vegas temporarily pausing its pioneering Strip program, have not helped the industry's perception. Analysts at the Indian Gaming Association tradeshow, however, maintain a more optimistic outlook, suggesting that cashless gaming is on the rise and will continue to expand as the sector adapts to consumer preferences.
During a panel discussion titled "Beyond the Wallet: The Future of Cashless Payments in Tribal Gaming," Jonathan Michael, a principal at Michaels Strategies, emphasized that although adoption rates are low among both tribal and commercial gaming entities, there is a clear demand for diverse solutions. He stated, "Players want choice in a variety of form factors," reflecting the broader societal trend towards cashless transactions.
Experts discussed how tribal gaming properties could harness cashless technologies to improve customer convenience, streamline operations, and drive digital transformation. Topics covered included mobile wallets, digital loyalty programs, and alternative funding methods, all while keeping an eye on emerging trends.
The panel featured notable figures like Victor Newsom from Everi and Thomas Pierro from Giesecke+Devrient, who shared some compelling statistics. Newsom reported a 44% increase in wallet usage over the past year, with TITO (Ticket In, Ticket Out) purchases made via debit cards rising by 14%. In 2025, TITO transactions are projected to reach $2.5 billion, while wallets are expected to contribute $550 million to the total $3.2 billion market. Notably, $40 million in chip purchases were recorded through debit devices at tables.
While cashless gaming is growing, it still represents only 7% of the overall market, indicating significant room for growth.
Newsom acknowledged that while there is strong growth potential, the industry's overall focus on digital transformation diminished post-COVID. He noted that the pandemic served as a major catalyst for digital adoption across various sectors, including gaming.
Looking ahead, Pierro predicted continued growth in cashless options, whether through direct funding or external wallets. He expressed optimism that as more individuals become aware of the benefits, adoption will increase. However, White pointed out that new technologies often face resistance on casino floors. He likened the current situation to the early days of TITO, which took a decade to gain acceptance.
Keenan remarked that the industry is still in the early stages of cashless gaming, but consumer feedback is promising. "There is demand," he stated. "We know elsewhere it is very successful. Our patrons want to use it." However, the question remains whether the industry will transition to a growth phase in the coming year.
Michael highlighted that while the American Gaming Association reports flat growth in land-based gaming, there are opportunities for expansion through digital payments and loyalty programs. He questioned how the industry can create systems that cater to both cash and cashless users effectively.
White pointed out that friction in the enrollment process often deters players from adopting cashless options. The requirement to join loyalty clubs and download apps can complicate the user experience, contrasting sharply with the industry's efforts to streamline gameplay.
Newsom echoed this sentiment, noting that the conversation around adoption rates often revolves around this friction. He added that the industry must meet customer expectations to enhance convenience.
As Michael pointed out, different companies have varying perspectives on cashless solutions. He mentioned Resorts World's decision to phase out its initial cashless wallet, indicating that it didn't resonate with their player base.
While digital payments account for 90% of transactions in the broader economy, the gaming industry is still largely reliant on cash. This discrepancy raises the question of how to design systems that cater to both cash and cashless preferences.
As Newsom highlighted, the solutions exist but often come with high costs or require significant time investments. The focus should be on initiating the process, learning from early experiences, and remaining adaptable. Options must be tailored to enhance customer experience, offering fast access to play and integrating loyalty programs effectively.
The panelists concluded that the path forward lies in simplifying cashless solutions, making them more intuitive and engaging for players. By doing so, the industry can encourage wider adoption and ultimately unlock the full potential of cashless gaming.
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