Cage Automation Empowers the Digital and Cashless Evolution
Determine the value cage automation can deliver to casino operations.
- Business stakeholders do not see the value in a cage automation system, where the organization is trying to digitally transform its processes.
- Evaluating vendors in the cage automation space can be challenging, as casino operators want to determine the differences between the vendors.
- The business is not aware of how cage automation can provide new opportunities to the business while also posing new risks and considerations to consider.
Our Advice
Critical Insight
Cage automation will improve the efficiency, agility, and resilience of cage and count processes while empowering the workforce to consistently innovate digital and cashless initiatives.
Impact and Result
- Understand the impact and value of automating cage operations.
- Identify areas for transformation by determining the cost and competitive advantages to comprehend the organizational current state and needs of cage operations and automation, vetted through a value chain analysis.
- Review the vendor functional criteria Info-Tech analyzed for six key players in the cage automation market that have functional viability for various casino operations.
Cage Automation Empowers the Digital & Cashless Evolution
Discover the value cage automation can bring to casino operations.
Analyst Perspective
Appreciate the benefits of cage automation and innovation
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How and where guests gamble in today’s digital economy is quickly shifting. The gaming and hospitality industry must adapt to the rapid changes in guest behavior to meet guest expectations and remain competitive. Automating casino floor processes will combat these challenges while improving and innovating new products and services for guests. Creating and maintaining relationships with new and current guests while improving tedious manual processes has never been more necessary in the industry with the economic recession and dynamic changes. Cage automation solutions allow casino operators to streamline cage and count management processes by automating the string of processes that a casino cashier would have to fulfill. Adapting to continuous disruption requires casino operators to innovate the different casino operations through digital transformation. |
Elizabeth Silva |
Executive Summary
Your Challenge |
Common Obstacles |
Info-Tech’s Approach |
|---|---|---|
Business stakeholders do not see the value in a cage automation system if the organization digitally transformed its processes. Evaluating vendors in the cage automation space can be challenging as casino operators try to determine which vendor best suits their needs. The business is not aware of the new opportunities cage automation can offer them while accounting for the new risks and considerations it would pose. |
Casino operators struggle to fill in front-line positions such as cage cashiers due to labor shortages. Not all operational processes are advanced or digitized, which is required to enable future enhancements and remain competitive in a digital economy. Selecting an approach that would satisfy all organizational requirements can be challenging, and operators need to choose wisely. |
Understand the impact and value of automating cage operations. Identify areas for transformation by comprehending the organizational current state and determining the cost and competitive advantages of different cage operations and automation solutions, vetted through a value chain analysis. Review the vendor functional criteria Info-Tech analyzed for six key players in the cage automation market that have functional viability for various casino operations. |
Info-Tech Insight
Cage automation will improve the efficiency, agility, and resilience of cage and count processes while empowering the workforce to consistently innovate digital and cashless initiatives.
Shifts in the gaming market and advancements in technology are driving cage automation
| 1 | Rising expectations of external and internal customers The demand for convenience and satisfaction constantly increases among players, who expect little to no friction and seamless journeys. With labor shortages across the industry, it becomes challenging to fill front-line roles where the workforce of the future depends on technology. A lack of resources applies pressure on management to simplify and automate casino processes with technology to satisfy capacity and organizational needs. |
“56% of all players were very satisfied with the in-person player experience, whereas only 46% were very satisfied with the digital/online customer experience.” (Lane Terralever, 2022) |
| 2 | Technological advancements such as cashless & mobile wallets The rising popularity of and necessity for cashless capabilities such as mobile wallets and other applications have a high impact on casino systems. Legacy and conventional casino systems lack the modern ability to integrate with cashless and mobile technologies, creating barriers to entry. Modern and innovative technology will be required to seamlessly implement transformative initiatives, to remove those barriers and remain competitive. |
Acres Manufacturing has yielded 70,000 digital wallet customers with Penn National Gaming Inc. in 2022 and launched an initiative with Sightline to enable cashless gaming on 250,000 slot machines across the US in the next three years. (Las Vegas Review-Journal, 2022). |
| 3 | Mergers & acquisitions Mergers and acquisitions within the fintech and gaming industry have allowed vendors to offer full tech stack capabilities to casino operators, creating a unified ecosystem for all areas of the casino floor and operations. |
Global Payments sold its Gaming Solutions business for $415 million to Parthenon Capital, changing its name to Pavilion Payments. “[It] will continue to offer its predecessor’s full suite of payments solutions and meet the evolving needs of the gaming industry and capitalize on the growth trends, especially in markets like iGaming.” (PYMNTS, 2023). |
A cage automation system can streamline cage operations and enable innovation
The casino cage is where money flows within the casino and players can conduct financial transactions with a cashier, such as cashing chips in and out, exchanging currencies, issuing markers, and other transactions. Count management is the process of counting money collected from different gaming areas. This involves the count or soft count team collecting money from different areas and securely transporting it to the count room. Cage automation solutions transform payment processes by utilizing modern technology and eliminating the need for manual labor and conventional cage systems. A cage automation solution can assist with the following processes that make up its own value chain: |
Advantages of transforming cage and count management 1. Empowered digital initiatives 2. Enhanced cashless operations 3. Improved cash flow 4. Delivery of frictionless experiences 5. Enhanced security 6. Reduced variances through automation and improved reporting 7. Increased staff efficiency |
Cage & Count Management Value Chain
| Cash Handling & Collection | Counting & Verification | Currency Exchange | Safekeeping | Compliance & Regulatory | Fills & Credits | Accounting & Reporting | System Admin |
Info-Tech Insight
Traditional processes that were enabled by convention cage systems are evolving and pivoting to enable cashless and digital wallet processes.
The cage and count management value chain is interconnected and highly valuable to casino operations
Cage & Count Management Value Chain
| Cash Handling & Collection | Counting & Verification | Currency Exchange | Safekeeping | Compliance & Regulatory | Fills & Credits | Accounting & Reporting | System Admin |
Cash Handling & Collection: The collection of cash, checks, chips, and vouchers from table games, slot machines, and other cash-handling sources in the casino.
Counting & Verification: Counting hard and soft cash and currency equivalents to ensure accuracy and recording of revenue. This can include counting machines and other tools to count and verify the cash collected.
Currency Exchange: Foreign currency is presented by guests and exchanged into local currency by the cage.
Safekeeping: Cash and high-value assets need to be securely stored to prevent loss, tampering, or theft. This involves the use of vaults, safes, and other security measures to ensure the safety of the assets.
Compliance & Regulatory: Compliance with relevant laws, regulations, and industry standards is a crucial part of cage and count. This can involve reporting cash transactions to regulatory bodies, audits, ensuring compliance, AML/KYC, suspicious activity monitoring, and other requirements.
Fills & Credits: Managing the flow of money in and out of different banks on the property to ensure they are operational and players can convert cash into credits and vice versa. Fills refers to refilling the chips, coins, or bills into different gaming areas. Credits refer to the removal of excess chips back to the cage and keeping track of player spending and the monetary value of their credits to adjust back into winnings such as cash.
Accounting & Reporting: The accuracy of accounting and reporting of cash transactions. This includes recording and documenting all cash transactions, financial reporting, and reconciling cash balances with other financial records.
System Admin: The upkeep, configuration, and operation of cage and count systems such as cash handling machines, software, and other tools.
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Guided Implementation 1: Define the organization’s key capabilities.
- Call 1: Determine the cost and competitive advantage creators for the organization.
Guided Implementation 2: Conduct a value chain analysis.
- Call 1: Identify value streams, chains, and stakeholders that are associated with the opportunities being analyzed for a cage automation solution.
- Call 2: Identify processes for transformation and evaluate them based on the level of pain or risk to the stakeholders and the financial impact on the business.
- Call 3: Analyze the capabilities prioritized for transformation by determining its greatest risks, complexities, benefits, dependencies, and financial revenue impacted by a cage automation solution.
Guided Implementation 3: Identify opportunities through a process assessment.
- Call 1: Assess the current state of the cage and count processes in the organization.
- Call 2: Identify opportunities to automate tasks, integrate applications, eliminate redundant or legacy applications, and rationalize the system.
Guided Implementation 4: Review vendor functional criteria.
- Call 1: Walk through the key players in the cage automation market that have functional viability.
Contributors
- Tom Schmitz, Head of Business Development: America, Stanchion Payments
- Passport Technology, CEO, Passport Technology
- Anonymous Contributor, VP of Sales, Gaming Solutions Provider
- Anonymous Contributor, Executive VP of Sales, Gaming Solutions Provider
- Anonymous Contributor, Director of Marketing, Gaming Solutions Provider
- Anonymous Contributor, Executive VP of Sales, Gaming Solutions Provider