The Pros and Cons of Cashless Gambling
The global economy is recording record highs for payments using cashless methods. Cashless payments and digital wallets are becoming the channels of choice for consumers because they offer quick and frictionless payment. This is also happening in online casinos where players use cashless methods to make deposits and withdrawals.
Mobile technology and cashless gambling
TITO systems were introduced more than 20 years ago. These coin-free slot machines were more convenient for patrons, lowered operating costs for casinos, and reduced theft and loss. The rise of card-based technology was next. Cards embedded with chip technology could track player activity, display membership awards, etc. With the advent of mobile technology, cashless gambling became possible.
At an Android casino, players have many ways to pay using their mobile phones. Players can use e-wallets that link to their loyalty member accounts and even make non-gaming retail purchases at casino resorts. They can transfer funds into their e-wallets at a casino cashier or via external payment gateways. These gateways allow them to transfer funds directly from their credit cards or bank accounts. Here are the pros of cashless gaming:
Enable quick, safe, and convenient transactions
One of the advantages is to ensure seamless transactions. Digital wallets can reduce queuing, waiting, and other inconveniences associated with using cash. Transactions are quick, safe, and convenient.
Encourage responsible gambling
Given the ability to identify and track players through e-wallet accounts, they can be an important tool to help with responsible gaming. Casinos could use the technology to implement voluntary barring or limits on spending to help those with gambling problems.
Identify suspicious behavior
Records of payments provide casino operators with real-time insights into transactions in the casino. They can identify suspicious behavior before it causes too much damage.
Comply with reporting requirements
The records also help them to comply speedily with reporting requirements. Operator efficiencies can increase when moving away from cash.
Cons of cashless gaming
The Nevada Gaming Control Board has technical standards for cashless wagering systems. Requirements are jurisdiction-specific such as restrictions on fund transfers and daily limits on electronic fund transfers. Additionally, cashless payment make it easier for players to gamble more, which could exacerbate problem gambling.
Compliance with data privacy laws
Other casino licensees must conduct risk assessments and propose internal controls when using new technology. The fact that they capture player data for identification and actively track them means they must conform to data privacy laws. Embedding privacy-compliant safeguards into systems is becoming increasingly popular.
Regulatory approval
The use of cryptos in daily life is increasing, and the outlook of regulators needs to evolve. Various cashless technologies are in the testing phases, pending approval from regulators. A thorough understanding of the benefits such new technology provides can help state and tribal regulators come up with a flexible regulatory framework to allow digital payments in the casino environment. Cashless gambling is likely to play a part in adoption by a younger target market and could help to future-proof the industry.
