In contrast to the traditional merchant transaction processing system, the delivery to customers of access cash services and the products that they are offered, must to be able to meet the highest quality standards of reliability and efficacy to manage the volume of transactions that occur in the gaming industry in casinos merchant account for online casino.

Gaming Industry:

The total US gaming industry is operating in more than forty States and generates around $190 billion in revenues (Data: American Gaming Association). Cash access services are available in a variety of venues that include the classic casinos in Las Vegas and Atlantic City, Native American Casinos, Riverboat Casinos and Pari-mutuel Race Tracks as well as Card Rooms.

Products for cash access play a crucial role for gaming operators with around 70% of revenue from gaming coming from these services. The majority of gaming companies rely on third-party companies that are outsourced such as Sightline Payments LLC to provide the necessary services to their players. We think to the North American (on an annual basis) Gaming Cash Access market to be worth $25 billion in services provided to customers and over 100 million transactions approved which generate an estimated 950 million dollars in revenues for the sector.

The most prominent supplier of this cash accessibility service is Sightline Payments (PRIVATE: Sightline), Global Cash Access, Inc. (NYSE: GCA), Global Payments Inc. (NYSE: GPN) which has an approximate 90 percent market share. The remainder 10% is split among other providers, including Money Centers of America (MCAM.PK), DiTronics Financial Services and ASAI.

Here is a brief description of the most common kinds of Access Services for Cash: Access Services found in a casino:

* Credit Cash Advances on Credit Cards (Smart Station Advances) The cash advances allow a patron of gaming to obtain funds to the limit set by the card’s issuing bank. The average consumer fee is 6 percent of the amount of money requested.

* Cash Advances for Debit Cards: POS debit card transactions are treated the same as an ordinary merchant transaction which means that the customer has access to cash up to the cardholder’s maximum purchase limit on debit cards that is typically higher than the normal ATM limit. The average consumer fee is 3.5 percent of the amount demanded.

ATM and ATM3X Patrons is able to withdraw money directly from their savings or checking account up to a daily maximum limit of $300. The fees for consumers average around $4.00 for each transaction. One recent trend in the business is the transfer of ATM services to Glory, NRT, and Western Money ticket Redemption along with Bill Breaking Devices.

* Cashing Checks (Certegy as well as Global Payments) Check verification processing, guarantee and processing services, which allows the cashing of checks from patrons at the cashier in the casino. In general, there are no fees for the customer, however in certain geographical regions the charges can be in excess of 6percent of the amount required.

* Gaming Credit and Markers Casino establishments sign up to credit bureaus to get specific information about their credit history in order to provide marks or credits to customers. In general, these services are only available to casinos “high end” players and there aren’t any fees charged for the customer.

The major costs and expenses associated with Cash Access Services include:

The casino commissions are: In cash advance or ATM cashing transactions Service providers make a payment to the casino at where the transaction took place.

* Processing and Interchange: Services providers are paid by credit card companies such as Visa as well as MasterCard interchange charges for the services they offer to settle transactions via their network. Additionally, they are paid for participation in numerous ATM as well as credit card network. The amount of these interchange charges are determined by card associations as well as the networks and are based on the network as well as the amount that is requested. Processing and connectivity charges are paid to the firms that provide companies with the network connectivity.

* Check Cashing Warranty Check cashing warranties concern the expenses incurred with checks that have been forged and are not guaranteed.* Operating expenses include a mix of wages and benefits and armored carriers’ expenses and the expense of repairs and maintenance for machines for accessing cash.

* Interest Cost: costs associated with the purchase of money to pay for the operational requirements of the ATMs.

He is Mr. Kirk Sanford is a pioneer and leader in the field of payment and marketing solutions to the gaming industry. He was highlighted in Business Week Magazine as one of the top 100 CEO’s under 40.


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