Las Vegas-based innovator Koin is transforming how gaming works in Las Vegas by offering an app that lets players digitally pay at slot machines instead of using cash.
The company aims to provide a digital payment mechanism that serves as a single source of funds for consumers in the entertainment sphere to use for transactions at casinos, concert venues and other locations.
“That’s the goal,” said Pat Schmit, vice president of product integration and business development at Koin. “And the Koin brand’s ambition is to become that casino-entertainment industry digital payment processing service of choice.”
The Koin app allows users to connect a funding mechanism of their choice, such as a bank account, credit card, Apple Pay, Zelle or Venmo, Schmit said. Then, that user can go to any casino that accepts Koin, he said, and use the app to conduct transactions at any gaming device, table, bar, restaurant or other outlet.
At a slot machine, for example, Koin users scan a QR code through their app to transfer their choice of a monetary amount to the gaming device, Schmit said. They can play as long as they like, he continued, and whatever funds remain when they cash out will flow back into their Koin wallet.
“And then you can walk around and rinse, wash, repeat,” Schmit said. “And anywhere you want to conduct transactions within the facility you’ll be able to do so.”
Koin is only the latest technology to make cashless wagering more mainstream following the pandemic, increasing convenience, catching up with other countries and decreasing touch points in a casino, according to Ted Hartwell, director of storytelling and development at the Nevada Council on Problem Gambling.
Breaks in play can be very important, however, Hartwell said, so players can have some moments of lucidity and thought disengaged from a gaming machine.
For example, if a player has set a limit for the day and taken it out of the ATM, they would have to make a return trip to the ATM in order to exceed their spending limit.
“It’s a little bit more of a process, right?” Hartwell said.
On the upside, he noted, there is the potential as wagering and wallet systems become more electronic to track exactly how individuals are spending their money within the gaming environment.
These systems can then build a profile for players, Hartwell said.
“You can see what their average spend is over time,” he said. “And this has the potential, again, to identify some early problematic behaviors that might not otherwise be noticed by the person or anyone else when they start to gamble in a manner that’s outside of their personal historical norms.”
That would demand regulation requiring operators to engage in that type of activity and foster outreach to players, which Hartwell said is unlikely. Identifying a gambling problem in someone early on is good for everybody, though, he emphasized, because it means that person may be able to pull back their behavior and also remain a long-term customer.
“If they can, again, help people identify that behavior and keep them for what for them is a reasonable spend, then that’s good for everyone,” he said.
Hartwell added that good options for these types of technologies would be allowing the user to set limits on their digital wallet withdrawals, enforcing a cool-down period once those limits are reached so the wallet cannot be replenished for a set amount of time and then providing personalized messages to users displaying patterns of problem spending.
A statement from Koin provided to the Sun said that Koin app users can effortlessly track their spending and manage balances in real time, offering greater visibility and control compared with traditional cash transactions.
“Built to meet the requirements of regulated environments, Koin provides a secure, transparent payment option that supports player choice and responsible play,” the statement reads. “By giving users clear insight into their funding and activity, Koin helps users stay informed and in control while enjoying a streamlined, seamless experience.”
Koin announced that it had partnered with Eclipse Route Operations (ECL Gaming) to leverage its technology at the latter’s more than three dozen locations in the Las Vegas Valley.
ECL Gaming, which owns and operates Bonanza Lounge, the Gin Mill, Golden West and other properties across Nevada, is the first route operator in the state to adopt a cashless digital payment solution, according to a release about the company’s collaboration with Koin.
“ECL Gaming strives to provide our guests with a unique, convenient and secure gaming experience,” ECL Gaming Chief Operating Officer David Foerschler said a statement. “We feel partnering with Koin to assist in providing a digital payment solution at our Jackpot Joanie’s, Lucky 7’s, and Winchell’s Pub & Grill locations in Southern Nevada will meaningfully enhance that experience.”
Koin’s arrival to ECL Gaming follows the earlier deployment of its product at Casino Pauma in California.
Koin instantly credits funds to Casino Pauma players’ Koin Pay app, so they don’t have to take payout slips to a kiosk or cage for redemption, the company said in a news release.
“We’re excited to be the first in San Diego County to bring guests this digital gaming technology,” Oscar Garcia, general manager of Casino Pauma, said in the release. “We strive to be first movers in using innovation to streamline and enhance our casino experience in this highly competitive marketplace. The Koin rollout is the next step in our guest experience evolution.”
Early results of the product’s rollout and its acceptance have been great, Schmit said, with users ranging in age from their early 20s to mid-70s.
“It’s a major convenience item” for guests, Schmit said.
“For one, they don’t have to leave the gaming device to access funds and put it on the game,” he said. “And secondarily, by using the Koin wallet, they can basically have a very handy, convenient way to track their gaming and entertainment spend in and out of that wallet.”
The gaming industry is historically slow in adapting new technology, Schmit said, and cashless payment is no exception — despite how handling cash and particularly moving it to and from ATMs on the gaming floor, can be a problem for casinos and route operators.
“It’ll take some time to make that truly a cashless environment, but if they can minimize and mitigate the amount of physical currency moving on and around casino floors and on and around route locations — I mean, it’s a huge, huge cost savings for the operator,” Schmit said. “And at the same time, it’s a huge convenience for the player.”
Koin aims to continue to make its debut at venues in Southern California and on the Las Vegas Strip, Schmit said.
The brand differentiates itself from its competitors, he noted, because many of their products can be used only at one casino. Koin, however, is “going to be universally accepted,” Schmit projected, so that anyone with a Koin app can go to a casino that also utilizes Koin and conduct transactions through it.
“It’s hard to get people to have 20 different apps,” he said. “So Koin’s success and growth is going to be driven significantly by the ability to use that Koin app at multiple venues, so you don’t have to worry about an individual app at each location that you’re going to.”