Inside Asian Gaming

27 26 here are considerable benefits for operators, which encourage the utilisation of these systems. These include the following: • The reduction or elimination of hard count and dropping of machines. • Substantial reduction in floor staff re- quirements, particularly in operating change booths, cash trolleys and in making hand payments. • The reduction or elimination of machine lock-ups in cases where, for example, hop- pers empty. • Improved auditability and reduced pa- per flows associated with accountability doc- umentation generated for fills or hand pays. • Improved security; cash transactions do not occur on the casino floor, and cash does The Ins and Outs of Cashless Machine Gaming Cashless gaming is a generic term which refers to a variety of systems for cashless or coinless wagering, or payouts, or both, from electronic gaming machines (slots). The deployment of cashless gaming systems is growing, to the point that new properties, such as Wynn Las Vegas, are opening with coinless slots not need to be handled on the floor to the extent required by cash-based systems. • It is claimed by industry insiders that 30% to 40% of direct labour costs associated with machine gaming can be saved by the introduction of cashless systems. There are also a number of benefits claimed for patrons, including the following: • Improved security, particularly for large amounts of coins or tokens which a patron might otherwise have won. • Greater portability; patrons do not have to carry buckets of coins. • Clean hands; change booths in most ca- sinos require a large stock of disposable wipes for use by patrons who have been handling coins. • The potential use of cards to aid harm minimization. Forms of Cashless Wagering There are currently four distinct technologies for cashless wagering, as follows: Bar Coded Tickets This technology is often referred to as TOTI, or ticket out-ticket in. There are several permu- tations which are possible with a TOTI system. The first is that players may use currency (i.e. banknotes) to load a machine with credits when they commence play. When they com- plete play, instead of cashing out, they will re- ceive a printed ticket, which is then taken to a booth and exchanged for currency. Alterna- tively, patrons purchase tickets at a booth and use the tickets to play themachines,which are equipped with ticket readers. When players complete their play, they can either cash out the ticket that they receive from the machine, or they can use it to play other machines. The technology is relatively straight for- ward; it involves the integration of a thermal printer with each gaming machine, as well as a reader. As with gaming machines which operate using cash, the machine generates its own audit trail. Magnetic Strip Cards AMagnetic strip card is similar to a credit card, such as might be issued by banks to enable customers to access their accounts. The sce- nario here is that a customer may establish a deposit account with a casino, which then is- sues him with a card and password. The card is then swiped through a reader integrated with a machine, the player enters the pass- word, and the display indicates the amount of funds he has available with which to play. At the completion of each cycle of play, the account is debited or credited, depending on whether the player has won or lost. This technology is well established; mag- netic card readers have been manufactured for more than 30 years. Smart Cards, Also Known as Stored Value Cards A magnetic strip card encodes information about the card holder onto themagnetic strip. A smart card, however, uses an electronic chip to store information,and it may be adapted to also store value on the card itself. A smart card can offer similar functional- ity to the magnetic card, particularly in rela- tion to password protection. However, since it can store more information,it can be linked effectively to other back office systems of op- erators, particularly those relating to player loyalty and rewards schemes, marketing and the like. The downside with smart cards is that they are significantly more expensive to produce than magnetic swipe cards. Electronic Funds Transfers (“EFT”) An example of an EFT system is that which has been developed by Ardent Gaming. The com- pany produces a system known as the Easy Money Electronic Funds Carrier (TM), which consists of a small electronic device fitted to a key chain carried by a player. This system uses wireless technology to transfer credits between a player’s account and the casino gaming machines, or other areas within a ca- sino, such as retail shops, restaurants and also table games. A player can deposit money with a casino and use that as the account linked to the funds carrier, or, in a variant of the system, he can link his bank account to the casino ac- count, using the same medium. The device itself only stores an account identifier which allows a player to transfer money to or from his account. Accordingly, if the device is lost, it can be de-activated and, since the system works with personal identi- fication numbers, a lost or stolen device can- not be used by a third party. What Issues Does Cashless Gaming Raise? Security/Integrity Various cashless wagering systems are al- ready approved for installation and play in various jurisdictions in the United States. In most cases, the systems are demonstrably safer than those associated with cash. Banking Laws A concern might be that a casino which takes demand deposits from players is in fact en- gaged in the conduct of a banking business, or a non-bank financial business. This may raise an issue as to the regulatory oversight of these systems, and prudential requirements for holding and disbursing those funds. Financial Privacy Laws The issue here is whether operators should be obliged to provide notice of their privacy practices to players using cashless gaming technology. In addition, there is the mat- ter of how, and when, information gathered about a person who may be maintaining an account with the casino can be disclosed, or otherwise used. Anti-Money Laundering There is clear potential for some forms of cashless wagering (in particular, using stored value cards) to be used in money laundering. The question here will be whether transac- tions using cashless systems are reportable, or otherwise subject to scrutiny under anti- money laundering laws. Unclaimed Property Laws As is often the case with bank accounts with small balances, it is conceivable that money which should be claimed by players remains unclaimed for extended periods, particularly in the case of smart cards. An issuewhichmay arise is at what point of time those funds may be regarded as abandoned, and be transfer- able to a government authority. There is no doubt that cashless systems will overtake conventional casino floors glob- ally. Not only does their utility benefit op- erators and players alike; card-based systems also offer significant potential as a tool in harm minimization for patrons; for example, a smartcard could be encoded with a player’s request to be self-excluded from a casino. If play can only be enabled or conducted us- ing the card, the player would be unable to participate. Moreover, the card could signal the presence of the excluded player on the casino floor, leading to his removal and, de- pending on the jurisdiction,possible criminal action for trespass. Identification of self-ex- cluded players is a nightmare for operators; this may provide a solution. T Out with the old