The world of casinos is synonymous with the chips, especially the way they clack when you hold a number in your hand and the way they feel when thrown on the green velvet. If you’re a slot player then these machines are all about dropping coins in the slot in order to get your spins. Or… maybe not. Modern casinos have been moving away from chips and cash, replacing it with cashless digital chips. Why is this the case? In good part it’s simply more convenient for both players and casino staff, but there are also security concerns to keep in mind. Cashless chips have brought about a quiet revolution in the way we engage with casinos both on and offline, so join us as we tell you all about a world where cash, once king, is quickly becoming obsolete.
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The History of the Casino Chip
While gambling is nearly as old as human civilisation and casinos have been around since the 17th century, the casino chip is actually a relatively new invention. In fact the first chips made an appearance in the 19th century as a replacement of the gold and coins that were gambled. Every casino made its own chips out of different materials, including bone, clay, wood, and even paper.
Currently casino chips have been more or or less standardised. They are made out of plastic and are typically 39mm in diameter, and can weigh anything from 8 to 20 grams. The one thing that differs is the branding, with colours and logos that represent the place one is playing at. The idea of the chip is so iconic that it is used by many online casinos in their branding!
The Move Towards Cashless Chips
The Move Towards Cashless Chips
As iconic and useful as chips are, the world is gradually moving towards cashless systems, and this includes casinos. Online casinos are, of course, technically cashless - if anything they are among the pioneers in online transaction technology. As for land-based casinos, many places are replacing the chip with a number of alternatives, such as digital wallets, mobile payment apps, and embedded smart cards. These allow one to seamlessly transfer cash to a machine or make a bet on a table without ever touching physical money or a chip.
The technologies behind the cashless casino are as varied as the payment methods themselves. One of these is Radio Frequency Identification (RFID), which powers smart chips. These carry embedded microtransponders that allow casino management to follow player movements in real time. This way they can precisely track player bets, behaviour, and even possible fraud.
Other technologies should be more familiar, since these are the ones powering contactless payments. Casino loyalty cards equipped with contactless technology allow players to easily place bets on slot machines or game tables once they set it up with funds from their bank accounts or e-wallets. Any winnings will then be transferred directly to the card. This process can be made even more seamlessly through mobile payments, with Google Wallet or Apple Pay paired with proprietary casino apps allowing for a gaming experience that requires no physical cash or chips.
The blockchain may also play a part in the cashless casino of the future. Some casinos are testing out tokenised systems based on decentralised ledgers in order to increase both transparency and security. It is impossible to counterfeit blockchain-based chips or credits, and since these automatically create an auditable transaction record this makes them attractive to both casinos and regulators.
Why Go Cashless?
The traditional cash and chip systems were working perfectly fine, so why would casinos go cashless? In part it’s a case of following technological trends, but there are other reasons involved that make cashless systems more beneficial for both operators and regulators, not to mention customers. After all, cashless systems make for a smoother experience for players. There’s no need to queue to convert your cash into chips or vice versa - a simple tap or digital transfer is all that’s required. These systems can also be easily integrated with casino loyalty programs, adding an extra layer of benefit for the high rollers.
Cashless systems make life easier for casino staff, since they no longer need to handle large amounts of actual money. They also make for easier payouts, accounting, and compliance reporting, bringing smoother operations and reduced overhead. Cashless also helps in Anti Money Laundering (AML) and responsible gaming operations, since it makes player tracking far simpler. The same goes for security - after all, both cash and chips are vulnerable to theft and counterfeits, and these risks can be eliminated through the use of cards and apps.
The Psychological Effect of Digital Payments
It’s well known that chips encourage players to gamble more compared to cash. This is because of a distancing effect, as chips blur the line between money and play. The same goes for cashless systems, as these make it easier than ever for players to spend without realising how much they are betting. After all, as mentioned above cashless systems eliminate the “friction” of handing cash to the table or game entirely. That said, these digital systems can easily include responsible gaming measures such as deposit limits and spending trackers to help players keep their gambling in check.
Such is the duality of cashless systems - how operators and regulators can reach a balance between the convenience of cashless digital payments while keeping customer welfare in check.
A Cashless Casino Future Awaits
A Cashless Casino Future Awaits
Currently cashless payments are being adopted at different rates across the world. Casinos in the US have eagerly adopted digital wallet systems, while British and European regulators are cautious in their regulation of these technologies. In the meantime online casinos have long been leading the way, having been cashless since their inception.
The future might see even more radical takes on cashless payments. Imagine heading to a casino and placing a bet via fingerprint scan or facial recognition, with payments handled by a cryptocurrency account. As appealing as the clink of chips is, convenience is the name of the game, which means user interfaces that are slicker and easier to use than ever.
