The delivery of cash access services must meet high standards of reliability, efficiency, and security, in order to cope with the high volume of transactions that the casino industry generates.
Gaming Industry:
The US gaming sector is located in over 40 States and generates approximately $90 billion in revenues (Data: American Gaming Association). Cash access services are available at many locations, including the traditional casinos of Las Vegas or Atlantic City, Native American Casinos as well Riverboat Casinos. Pari-mutuel Race Tracks. Card Rooms.
The cash access products are a crucial part of the gaming industry. In fact, 70% of all gaming revenue comes from them. Sightline Payments LLC provides these services for most gaming operators. We estimate that there is a $25 billion market in North America for Gaming Cash Access. Additionally, the industry generates $950 million annually.
Sightline Payments, PRIVATE: Sightline, Global Cash Access, Inc. (NYSE/GCA), Global Payments Inc., NYSE/GPN, are the largest providers of these cash-access services, with an approximate 90% market share. The 10% remainder is split between Money Centers of America (MCAM.PK), DiTronics Financial Services (ASAI) and Global Payments Inc. (NYSE: GCA).
Here are the most popular Cash Access Services available in casinos vworld my.
* Credit Card Cash advances (Smart Station Advances), also known as credit card cash advances, allow a player to access funds up the limit of their card-issuing bank. Consumer fees average 6% of the amount requested.
* Debit Cash Advances: POS card debit transactions are processed just like regular merchant transactions. The cardholder can access funds as high as the purchase debit limit. This is usually greater than the daily ATM limit. Consumer fees average 3.5% of the amount requested.
* ATM or ATM3X: A patron may withdraw funds directly from his/her checking or savings account, subject to a daily average limit of $300 Consumer fees average $4.00 per transaction. An industry-wide trend is the migration to Glory, NRT and Western Money Redemption, as well as Bill Breaking Devices, ATM services.
* Check cashing (Certegy, Global Payments),: The check verification, process and guarantee service allows the patron to cash their checks at the cashier. Although there are rarely any fees, some regions may charge fees up to 6% depending on the requested amount.
* Gaming credit and markers: Casinos use credit bureau services to access detailed credit information in order to provide patrons with markers or credit. These services are typically reserved for the casino’s most “high end players” and are free to the consumer.
Cash Access Services have the following expenses and principal costs:
* Casino commissions: The service provider pays a commission for cash advance transactions, ATM and check cashing transactions.
* Processing and Interchange: Service providers receive interchange fees from credit card associations, such as Visa and MasterCard, for their services in settling transactions via their networks. Additional fees are charged for participating in different ATM and credit card network networks. The interchange fees charged by these card associations or networks are determined based on the amount of the transaction and the network. The service providers who provide network services will be charged for connectivity and processing fees.
* Check Cashing Warranties: Check cashing warrants cover the costs incurred for dishonored checks.
* Operating expenses: This includes salaries and benefits as well as armored carrier expenses and repair and maintenance of cash access device.