What part of the payments industry do you think is currently evolving the fastest?
I think the thing growing the fastest around the world frankly, and leading consumer trends, is the adoption of self-service technologies. At least in the US, three quarters of all payment transactions are done self-service, and better than half of all holiday purchases were done via mobile. So those two dominant trends are really where the focus of the consumer lies. Even in the gaming space, we are seeing significant shifts to self-service.
The ability to automate cage functions and move them down to a kiosk are some things that are highly important to the guest, relative to convenience, and allows them to operate in a way that they feel comfortable. The other piece of that is really cashless gaming. The number of consumers pushing and leaning into leveraging their mobile phone as a way to access and play their favourite casino games is certainly a hot topic.
I think that’s what’s also translated into the growth of sports betting since the overturning of PASPA: the ability for me to sit at the Stanley Cup and place a mobile bet on who I think is going to win – Vegas Golden Knights, of course.
Of course. We all love Vegas in this industry!
But mobile and self-service are really the two hot topics that are where the customer wants to be and where the industry is going. I think payments are going to be one of those things that really starts to determine winners or losers in the future. We all want convenience, safety and security, and those things are really what bundle up and help to create a guest experience that’s unparalleled. If one operator is going to be manual and inconvenient, and the other is going to be technologically advanced and help me get what I want as a guest, I’m going to spend more of my money where it’s convenient.
Part of that guest experience and convenience bundle is the omnichannel experience. What does it mean to be truly omnichannel?
When you think about omnichannel, it’s how you are every day in your life. It’s the fact that you can go to your favourite retailer and you can look online while you’re there. It’s about being real-time, on-demand with your guest and meeting the guest where they want to be.
We’ve touched on casinos going cashless already, but what do you think about going cardless and using more of an open banking system in gaming? Has Pavilion approached that already?
To me, when you think about cardless – I guess I would reframe it from ‘cardless’ to being more experience-based – and if the purpose of a loyalty platform is to put a smile on your face and properly reward you for your business, do I really need a card? Frankly, the question is, do I really need to know who you are at all? If I can reward you for your play, whether you’ve taken the time to sign up for my program or not, I’m still able to put a smile on your face. I’m still able to get you back and allow you to play where, when and how you want to play. I meet you where you are. Operators will have to go figure that out. As we think about things relative to cashless, it’s along a similar program. VIP Mobility, our cashless solution, doesn’t require you to enrol in anything. You download the app and you can get started with a standard TITO ticket, where you’re effectively remaining anonymous.
The idea behind it is to help you get on a journey at the spot where you’re comfortable – no different than going to the casino. You can start as anonymously as you want – with additional capability as you want – and additional rewards. Give me a little information and I’ll deliver money to your app from one of your financial accounts. Our whole goal is to help nurture the guest along a journey that is most comfortable for them. That really created a much stronger user adoption and a much bigger consolidation of someone’s gaming wallet around the places that are using these technologies. Data shows that guests, by and large, while their overall gaming wallet may only increase 9 to 11% of their total spend, the fact of the matter is the consolidation of their wallet is significant, because they’re going to the places that are just more convenient and more secure.
You’ve mentioned downloading an app, and not having lengthy sign-in or sign-up processes, but we wanted ask about the balance you strike between quick payments and secure payments?
We leverage the casino’s trusted cashless wagering system. Tickets can only be redeemed once. Whether utilising our app, or whether utilising a paper ticket, once that ticket has been redeemed, it’s been redeemed. VIP Mobility adds safety and security because all transmissions are encrypted with bank-rate encryption. The ability for someone to play their favourite game and always have those monies delivered to the spot they expect has been proven. When it comes to the ability to then pull money in from one of your financial accounts, we go through a KYC process. We’re obligated to ensure: is somebody who they say they are?
Do they have the authorisation to use the accounts that they’re putting forth? We go through a process of validating who the guest is, through a variety of banking systems. Therefore, I know who the guest is, I know the account is real and we move the money in a bank-grade, highly secure way. Then we leverage the authorisations, which we acquire TITO tickets on behalf of, from the casino. Then that is effectively the balance that shows up on the phone. It is secure, efficient and a way that ensures game integrity. Every transaction is backed with a ticket and every transaction can be reviewed, whether it’s by the casino, by audit or even by regulator.
And as far as another way to make and track payments goes, how important do you think digital wallets are going to become in the future?
‘Wallets’ have a very specific meaning in that, typically, a ‘wallet’ means there is a custodian that is really controlling the movement of money in and out. Typically, that custodian is the one that’s holding the money. In the case of what we do today with VIP Mobility, we’re not holding anybody’s money. We move money from the guest to the operator, and then we acquire that TITO ticket to show that there is a ticket liability from the operator back to the guest. Then, we move that money throughout the resort – so whether you’re playing slots, playing table games, wanting to buy dinner for you and your friends at Wolfgang Puck – we’re moving the money behind the scenes.
I can still have that same balance, and I can move that from the casino into the sportsbook, or into your online wagering account, so that you can move the money around. The important part for us is we’re not in the middle of the process and holding anyone’s money. The relationship between the guest and the operator is important. Ultimately, it’s the operator’s responsibility to fund the guest winnings, but we make that process easy. Everything can be accomplished without having to put the responsibility of holding the casino’s money in a third party.
It’s really about being everywhere, but behind the scenes at the same time?
Absolutely, because it’s organisations like ours that make things like ApplePay, and PayPal and all these other companies work. It’s the plumbing, if you will, that connects everything. You don’t have to see the plumbing to still get the benefit of the fact you have clean hands, but it’s necessary.
What is the feature that Pavilion customers ask for the most?
The consumer could be either an operator or a guest, but I think it overlaps. The solution that casino customers ask for and use the most is our solution called VIP Preferred.
It is a consumer program where we underwrite the player, and then we issue affordability limits that allow that player to move money to the casino. Whether it’s online or brick and mortar, the monies that we move are then backed by us. Fundamentally, we pay the casino and then we do a transaction with the consumer to get the money back that we have allowed them to play. It gives game integrity and certainty to the operator all the while allowing the guest to play with certainty. The guest benefits from enrolling once, then has access to use that enrolment across operators and across platforms.
If you’re an operator, and you’ve got the highest in industry limits, you’ve got the highest approval rates and you’ve got 3 to 3.5 million consumers that are already signed up, the cost of acquisition is very low. It’s a program that a lot of guests ask for by name: “Do you accept my VIP?” The program allows the guest to play online at MGM, Caesars, DraftKings, Barstool – all of the interactive places. It also allows me to go to MGM, Sands, Wynne, Yaamava’ and hundreds of locations, but then also allows me through VIP mobility to move money in and out – again, very omnichannel. We’ve worked out how to allow that guest the omnichannel experience of moving in, playing their favourite game across the industry and being able to get their money back in a fast, efficient and safe way.