U.S. casino considers non-cash gambling

01-10-2020 |  

The U.S. casino industry – the world's largest cash ecosystem – is considering electronic payments to prevent Covid-19 from spreading.

The U.S. casino industry has long remained steadfast in cash, despite the world's gradual shift to electronic payments. However, the pandemic is raising concerns that the virus spreads through casino transaction sheets.

Nevada Gaming Commission – the governing body of casinos in the state of Nevada (home to the casino capital las Vegas) last week approved a number of regulatory changes, clearing the way for the widespread application of non-cash gambling in casinos. The American Casino Association this month also presented a list of priorities to modernize the payment system.

Paying by phone or e-wallet when buying poker chips and credits (for slot machines) will modernize casinos. The fear of Covid-19 spreading is causing consumers to increasingly use many mobile payment systems such as Apple Pay, or Starbuck's app so as not to have contact with cashiers. At the end of March, about 27% of U.S. business owners recorded an increase in contactless payments, according to a survey by the Electronic Trading Association and payment consultancy Strawhecker Group.

Players at a casino in Las Vegas. Photo: AP

Kirk Sanford, founder and CEO of gambling technology firm Sightline Payments, said recently that efforts to apply non-cash payments at casinos have failed, due to technological and social barriers. "As a result, the casino industry here is now the largest cash ecosystem on the planet," says Sanford.

E-payment advocates say it will make it easier to track suspicious activity, detect money laundering, and also allow for account usage limits. It also reduces contact with keystrokes in ATMs and interacts with cashiers.

Phil Katsaros – a Nevada Gambling Control Board member – the agency that enforces and makes recommendations on the operation said the pandemic could speed up acceptance of non-cash payments at casinos. "The success of this depends on the level of acceptance of the player. It depends on the persuasive ability of casinos," he explained.

Another challenge is that players may also not want to use electronic payments in other life activities. In addition, cash still appeals to those who prefer anonymity when playing cards.

However, many are concerned that switching to non-cash payments will have many implications. For example, the pressure caused by Covid-19 will cause more casino addicts. And non-cash payments will further increase this risk, said Keith Whyte, Director of the National Advisory Organization on Gambling Issues. "The faster you access money and the easier it is to withdraw funds in your account, the more likely you are to become addicted to gambling," Whyte said.

According to VnExpress/WSJ