Foreword

When we think of casinos, we usually think of James Bond movies, in which Bond and the villain sit at a table looking at piles of cash.

But as we move into an increasingly cashless world, we wonder when casinos will follow suit. Well, due to the current coronavirus pandemic, casinos may be modernizing faster than they plan.

Slot machines haven’t used coins for over a decade, so it’s only a matter of time before other areas of the casino also go cashless. Cashless betting is already underway, but concerns over sanitation and patron safety are picking up speed.

For players, cashless casinos certainly have their appeal. If you’ve ever tried to withdraw money from an ATM in Las Vegas, you know that fees can be high, especially at the casino itself, where they can run as high as $10 per transaction.

But while cashless betting may seem easy, others are against it – and we’ll explore these issues shortly.

The first step has been approved

Despite the many concerns raised, the Nevada Gaming Commission approved the first step toward cashless gaming at casinos by backing the lifting of the ban on cashless systems.

It’s just the beginning — any cashless wagering system must first be tested and approved by the Nevada Gaming Control Board — but it’s a big step in the right direction.

So what’s the problem?

Concerns about cashless casinos revolve around the safety and security of players and casinos. Let’s look at it in more detail:

1. Problem gambling

Part of the reason for the growing problem of gambling addiction is believed to be the convenience of online gambling, where you can top up your online account with the click of a button. It often doesn’t feel like you’re using “real” money, and you quickly forget how much you’ve spent.

As a result, some worry that cashless transactions at brick-and-mortar casinos will lead to an increase in problem gamblers. They argue that betting is so easy that players won’t see the money they spend.

While players have the option to apply limits to their cards to prevent them from overspending, not all players practice good bankroll management.

2. Risk of fraud and theft

Others expressed concern to commissioners about the possibility of various fraudulent activities.

For example, there are concerns that players accidentally leaving cards in machines could lead to theft or various other credit card scams.

Others are more concerned with what needs to be done to prevent money laundering.

However, just like online casinos, there will be strict requirements to regulate digital payments to keep players and casinos safe.

We spoke to Kate Lowenhar-Fisher, chief gaming attorney at Dickinson Wright in Las Vegas, on the matter.

Ms Lowenhar-Fisher, who has advised many of the world’s leading gaming companies on regulatory issues, believes that these issues are largely a thing of the past and that problem gambling needs to be a priority:

“These concerns are largely outdated and relate to the early days of digital commerce. In many ways, the complex digital trail of cashless transactions can make fraud or money laundering easier to detect and investigate.”

“I think the main regulatory issues around cashless betting relate to responsible gambling. Any system to be approved will likely have to include important safeguards to address these issues.”

3. Unemployment

Cashless betting will mean more job losses. Casinos will no longer need as many employees to handle cash, putting many people out of work permanently.

Unemployment has already skyrocketed due to the pandemic, so this will only lead to more jobs in the traditional areas of the casino.

Expert opinion

The American Gaming Association (AGA) has spearheaded the drive to modernize the casino trade. While the rest of the world has moved more toward cashless and online payments, casinos have held their ground, but the AGA says that needs to change.

While the coronavirus has certainly accelerated these actions, AGA CEO and President Bill Miller said the development of digital payment opportunities has become one of the association’s “top priorities.”

The pandemic has just proved how important it is to have a cashless betting option to reflect the modern world we live in. The AGA has also developed a list of principles showing the benefits of cashless wagering to casinos and patrons, including a rebuttal to problem gambling.

Ms Lowenhar-Fisher agreed that progress to a cashless betting system was inevitable, saying:

“In any case, the regulated casino gaming industry is moving relentlessly in this direction. However, the public health concerns associated with the physical handling of cash and chips have undoubtedly accelerated the adoption of these measures.”

“It’s worth noting that the Nevada Gaming Commission has not approved any system for electronic transfers to games and gaming equipment.”

“At the most recent hearing, the NGC simply lifted the ban on such systems, and the chairman now has the power to approve new cashless wagering technology. There is still a long way to go, but the NGC and the Nevada Gaming Control Board have said They are open to this kind of innovation.”

Cashless is the way forward

The world is moving further and further away from cash, and there will always be a point where you join or fall behind. No firm date, but cashless casinos are coming.