Las Vegas Casinos Also Want Prepaid Cards for Slot Machines
The Nevada Gaming Commissioner voted 4-0 to approve an amendment which would allow prepaid debit cards for online gambling, according to the Las Vegas Review-Journal. Such a payment method had been recommended by Sightline Payments, a payment processing business based in Las Vegas.
The amendment addresses concerns raised by the Nevada Council on Problem Gambling, which has fought the use of credit cards on gaming devices. The NCPG considers prepaid cards better than traditional credit cards because it puts a limit on the amount of money spent on machine gaming. Such cards are regulated by the U.S. Treasury Department, as well. Besides these advantage, banks place limits on the amounts withdrawn in a 24 hour time limit, but card holders also have the opportunity to set pre-set limits.
In effect, such cards would fill the role of direct gaming limits, which some jurisdictions around the globe have used to allow gamblers to limit their gaming expenditures. Experts believe gamblers are more likely to set reasonable limits before they start betting, when competitive spirit and the desire to chase losses might cause them to make unwise decisions. When players load new funds onto their cards, Sightline’s software would place a message about problem gambling on the screen for the player’s benefit.
Compatible with Loyalty Cards
While the debit cards in question would be tied to a casino’s player loyalty card, they could also be used on purchases and activities outside a gaming establishment. In other words, the prepaid debit cards would act much like cards issued by local banks and online payment services like PayPal. Atlantic City casinos already use a similar system.
The Nevada Gaming Control Board still needs to approve the payment system before a new policy is enacted. Also, Sightline must negotiate deals with Nevada casino operators, though this is not expected to be much of a hurdle.
Industry Insiders Approve the Measure
Marc Falcone, the CFO of Station Casinos, sent a letter to the Gaming Commission indicating his support for the plan. In his letter, Falcone stated the prepaid option is superior to traditional credit cards and debit cards, because they act more like cash. When a gambler reaches $0 on their card, they simply run out of funds as if they had run out of cash money, providing them with no option but to “cease gaming”, until the card was reloaded.
Besides being an advantage to the player, Falcone says the prepaid cards would help casinos cut costs. Using standard credit and debit brings with it service charges and other processing fees. In his letter to the commission, Marc Falcone said, “We have significant cost associated with obtaining and handling cash. We believe that it is time Nevada gaming companies get the benefits of electronic commerce that have been available to other industries for several years.”
Lowers Costs for Casino Operators
Las Vegas gaming companies such as Caesars Entertainment Corp, MGM Resorts International, and United Coin Machine also expressed support for the plan. In the case of United Coin Machine, the company incurs major costs transporting cash to and from the casinos they service. Such cards would help eliminate many of those costs.
Steve Des Champs, the General Manager of United Coin, said, “It would provide an enhanced level of safety and security. The prepaid card also represents an interesting new tool for us to use in interacting with our guests.”
Prepaid Cards Help Limit Problem Gambling
The cards would work with slot machines and video poker machines. Those concerned about problem gambling often target slot machines as the most concerning form of land-based gaming, because of the high rate of spins. In most gambling operations, slot machines account for 60% to 70% of the operation’s revenues.
The Nevada Gaming Commission’s 4-0 vote was unanimous, though all five members did not vote on the motion. Commission Chairman Pete Bernhard was absent from the meeting in which the vote took place, but it should not be inferred he took exception to the amendment proposal. The Las Vegas gambling establishment appears unanimous in its approval of the prepaid debit cards.
