Outdated casino management system enrollment methods are costing casinos in the United States up to $5 billion a year, a new study has claimed. Casino loyalty and technology developer Acres today released a new position paper as they explore casino loyalty technology.
The outlandish research indicates that the reliance on physical loyalty cards at land-based casinos is behind the times, having evaporated from almost every other industry it's still common practice at casino establishments. The study claims that casino customers spend 1.1 billion minutes a year waiting in line to receive a player card, leading to a loss in revenue of over $1.75 billion.
The remaining losses come from the upkeep of reissuing physical players' cards to existing members which Acres claims costs casinos $3b, with a further $1b in losses estimated to be from players who avoid the inconvenient process of actually signing up for a loyalty card.
Likewise, casinos spend significant floor space implementing their "Players Club" kiosks to enroll prospective members, which can be a time-consuming process. Acres estimates the cost of running these players clubs at over half a billion dollars when including staff salaries and the space that could be allocated to traditional casino games.
Noah Acres of Acres Manufacturing Company commented, "The casino industry's continued reliance on the physical loyalty card, which has become extinct in virtually every other industry, significantly hinders casino's ability to attract and retain new players.
New modern CMS technology is needed to overcome this nearly $5.0 billion economic impact caused by the significantly outdated technology capabilities of legacy CMS solutions.
"Our Foundation™ HQ CMS addresses consumer preferences, there by helping casinos massively scale new database acquisition by offering and incentivizing a ten second enrollment process to any uncarded player during the play session without the need for a physical player card. We encourage all industry constituents to review our continuing series of position papers that highlight the benefits our approach to casino loyalty technology.
The study goes on to reference the revenue generated by slots for casino, with revenue now lower than 15 years ago despite upgrades in both slot technology, game selection and new jurisdictions legalising citizens to play at online casino sites. Approximately 30% of slot revenue comes from players over 70, and it's recommended casinos modernize their loyalty programs to lower their dependence on older players.
Figures tallied in the research were based on various metrics, including an estimated one-minute value of $1.60 per player and a $20 cost to the casino to issue a loyalty card before earning any revenue from the new member.