Pulse
Cashless systems offer operators the best of all worlds
By Lewis - 2 September 2020
Jurgen De Munck, CEO and Co-founder of DR Gaming Technology, offers insight into the cashless debate in light of COVID-19 and expresses his belief that both TITO and player cards will become a technology of the past.
Has the Coronavirus pandemic impacted the cashless debate? Can it now be said that cash is no longer king?
I think at a primary level yes, and in obvious relation to specifically the physical transfer of the virus. That said, the World Health Organisation (WHO) continues to affirm the fact that the COVID-19 virus is solely spread when:
• saliva droplets are left on objects and surfaces by an infected person when they sneeze on, cough on, or touch these surfaces;
• healthy persons then get infected when they touch these surfaces and then touch their eyes, nose, or mouth, before properly cleaning their hands.
The above said, and whilst I maintain that in time all operations will be cashless, in specific relation to your questions, my view is that as long as we all utilise our best endeavours to inhibit the spread of the virus, both as consumers and service providers; and subscribe to the protocols prescribed by the WHO in respect of regularly washing our hands, wearing a face mask, and most importantly refraining from touching our eyes, nose, and mouth, cashless and cash gaming will continue side-by-side for some time to come.
Why should operators invest in cashless solutions now? Has the catalyst of covid necessitated an immediate change by operators?
Our design mantra has always been ‘the player first’, and as a result I firmly believe that it will ultimately be ‘the player’ that drives operators’ speed of migration to cashless, whether that be expedited by the current pandemic, or as a result of changes to society’s general service expectations as technology evolves, remains to be seen.
The above said, cashless solutions through electronic fund transfers (via either a player card or an app), are without a doubt the future; it is a safer, simpler, and easier to manage solution for players and operators alike. In addition thereto, and in specific relation to consumers’ on-going demand for tailored offers of value, a cashless solution specifically increases tracked game play, in so doing providing operators with the data required to better understand their players, and as a result design rewards, and present relevant offers, of real value
One of the main benefits of going cashless is the elimination of cash handling costs yet operators often offer an option to pay in cash alongside a cashless alternative. Does this undermine the benefits of a cashless solution? Why do operators offer both types of payment?
You are quite correct in noting the cost benefits of operating cashlessly, in relation to not only the cost of handling that cash, but the elimination of the associated hardware required to ‘use that cash’, specifically in relation to coins, but also in respect of notes, and TITO ticket, acceptors and printers too.
Our view is that at present the most cost-effective way for gaming operators to manage their casino, and meet the expectations of their customers, is via a cashless system. Hard cash is becoming less and less of a currency every day, and that evolution will extend to land-based casinos, it is merely a matter of time. As long as the service is as secure, easy, and reliable as that provided by retailers and/or any other types of entertainment vendors, players will want it and will adopt and accept it gladly.
In terms of why operators, and the aforementioned retailers, still accept cash, as alternate option to cashless comes down to offering consumers choice. In my experience the answer talks to the human psyche:
Firstly, we want to know we have an option, it’s empowering. Have you ever been to an event where you can only use a certain payment provider, or cash only, it’s irritating isn’t it – we don’t like being told what we can and can’t do.
Secondly, we sometimes just like to feel the physical money. A wad of cash has a feel to it, doesn’t it? Whereas a card, or your phone (in the case of an e-wallet), feels exactly the same whether it has a balance of €0.00 or €10,000.00.
Cashless solutions and the technology powering them are continually evolving. How do you stay ahead of the curve and incorporate the latest developments into your solutions?
Now if I had to answer this question I’d be giving away all our secrets, wouldn’t I? Suffice to say, our CTO and our respective R&D directors and Product Managers spend a lot of time with existing service providers in this space, as well as with our customers, and new entrants to the sector in order to understand what the market needs; what the market is offering; and what the market may soon be offering.
drTicket enables players to transact cashlessly between multiple EGMs, tables, and operator venues. How do you ensure transactional security in a serverless ticketing solution?
I believe that what sets us apart from our competitors is indeed the serverless technology you refer to; that said I need to clarify that the offering we have relates to our system not having to be connected to a server at all times, it is not serverless per se’.
What is key, and it drives not only our reliability, but our affordability, and our functionality, is our patented drSMIB; to which all EGMs, Tables, Cash Desks, Player Kiosks and the like are connected. Via our drSMIB, operators are able to define parameters, amend user access and licence keys, and update and change various other details relating to individual EGMs or tables, as well as local and wide-area jackpots.
This functionality then extends to the entire gaming floor and its associated aforementioned support services too; each drSMIB (on which all edits are undertaken) then automatically synchronises with all other drSMIBs in the network as soon as any changes are made, in so doing ensuring unparalleled data redundancy, real-time data and reporting, and providing the transactional security you refer to.
Where do you see the next innovation for ticketing solutions?
Ticketing, despite its on-going use, was the precursor to SMART card technology, which in turn is being replaced by RFID and NFC technology; both of which now afford operators with significantly less expensive (approximately 50 per cent) and easier to use player card options, and ultimately place them in a position to migrate to both a cashless and cardless solution.
Our view remains that both TITO and player cards will become a ‘technology of the past’, in that order, over the next five to 10 years. In addition to the current pandemic, and its associated risks, TITO ticket costs are also becoming more and more prohibitive and also not very environmentally friendly.
The move to RFID cards, and ultimately cardless gaming just makes commercial sense; even though the initial cost in issuing all players with an RFID card may seem prohibitive, after an average of what we would estimate to be no more than 100 TITO tickets being printed, the RFID cards have probably more than likely paid for themselves. They last far longer, do not need to be replaced as frequently as every transaction, (like a ticket), and when true cardless technology is embraced there is nothing to print and as a result nothing to throw away.
The move to coinless happened almost organically, and we see that a progression to cashless is not only inevitable, but logical; with many operators skipping the ‘stop off’ at TITO completely.
Real-time monitoring of payments is becoming increasingly important. What advances are being made in technology and data quality to improve the monitoring of player transactions?
I refer here again to our patented drSMIB, and our ability to guarantee uptime through the redundancy created across our drSMIB network, locally or across an operator’s entire estate.
Time is indeed money, and as long as operators are able to track all transactions, all the time, and as they happen, and then be notified of any ‘exceptions’ in real-time too, player and operator data and funds remain secure.
Emerging markets, such as South America and Africa, are predominantly cash dominant. How do you tap into these markets that hold huge potential? How do you tailor a cashless solution that utilises the latest technology to these markets?
The above statement is very true, but the evolution model remains the same, with the adoption of new technology happening here at an even faster rate than elsewhere. One only has to refer to Carnival City Casino in Johannesburg, South Africa who as far back as late 1998 opened with not a single coin-operated slot machine or ticket printer, it was all carded game play from day one, and similarly Mexico where true cashless gaming has been around since the market opened in 2004.
The solution for these regions exists and many operators have already embraced it, the key though, as I referred to earlier is the player, he comes first, and until he embraces it, that migration will be a trickle, not a flood.
