Key Takeaways
- Penn Entertainment is seeking a Nevada license to develop and deploy in-house technology at the M Resort in Henderson
- The M Resort has launched a new cashless wagering system, but current licensing limitations require outsourcing reports to third-party vendors
- Penn Entertainment is expanding its in-house technology, including a promotional engine and cashless wagering system
- The Nevada Gaming Control Board is open to providing flexibility to operators to create technology and improve guest experiences
- Penn Entertainment’s cashless wagering system is operating in 10 jurisdictions and allows customers to fund a digital wallet via credit card, bank account, and other methods
Introduction to Penn Entertainment’s Licensing Request
Penn Entertainment is seeking a Nevada license to provide the company with greater flexibility to research, develop, and deploy in-house technology at the M Resort in Henderson. The M Resort has recently launched a new cashless wagering system, but its current licensing doesn’t allow for the customization of reports, requiring the resort to outsource them to a third-party vendor. This limitation has led Penn Entertainment to seek a license that will enable the company to expand its in-house technology, including its promotion system. According to Kelci Binau, Nevada gaming counsel for Penn, the company plans to make significant changes to its promotional system, which will be made possible with the new license.
The Need for In-House Technology Development
Christopher Soriano, chief compliance officer at Penn Entertainment, explained that the company has been developing its own technology, including the cashless wagering system, which integrates components from several different manufacturers and distributors into a single system. However, the current licensing limitations have added friction to the process, as the company is unable to generate its own reports. Soriano stated that the company is in the process of expanding the cashless wagering system to include table games, which will require modifications to the reporting system. By obtaining a Nevada license, Penn Entertainment will be able to develop and deploy its own technology, including the cashless wagering system, without relying on third-party vendors.
Gaming Control Board’s Support for Innovation
Gaming Control Board Chair Mike Dreitzer expressed the Board’s desire to invite technology to come to Nevada, emphasizing the importance of providing flexibility to operators to create technology and improve guest experiences. Soriano noted that having a partnership with the Board’s Technology Division is valuable to Penn Entertainment, as it enables the company to deliver the best technology to its guests. Dreitzer encouraged Penn Entertainment, as a multi-state operator, to consider Nevada first when introducing new technologies, suggesting that regulators will work with the company to bring emerging technologies to the marketplace.
Cashless Wagering System and Its Benefits
Soriano explained that Penn Entertainment’s cashless wagering system is currently operating in 10 of the company’s jurisdictions. The system allows customers to fund a digital wallet via credit card, bank account, and other methods, which can be used for gaming, food and beverage, and hotel expenses. The system is based on Penn Entertainment’s mobile loyalty app, which enables customers to sit down at a slot machine and fund it using Bluetooth technology. Soriano highlighted the security benefits of the cashless wagering system, which includes know-your-customer tracking and additional security around payment systems. This helps from a compliance perspective in identifying and preventing suspicious activity.
Growth and Adoption of Cashless Wagering Technology
Penn Entertainment officials reported continued growth in the adoption of the cashless wagering technology. Brian Wasilefski, vice president of marketing, noted that initially, the company thought that building the technology would be enough, but it soon realized that educating customers about its benefits was crucial. Once customers were educated about the technology, they loved it, as it provides a convenient and familiar experience, similar to paying with their phone at Starbucks or retail stores. Wasilefski emphasized that integrating multiple solutions to provide an overall solution works best, rather than relying on a single company to provide a solution.
Future Developments and Expansion
Penn Entertainment is developing a promotional engine that utilizes kiosks and the mobile app, allowing guests to enroll in promotions without having to stand in line. The company is also expanding its in-house technology, including the cashless wagering system, to improve the overall guest experience. The Nevada Gaming Commission is scheduled to consider Penn Entertainment’s licensing request on December 18. Meanwhile, the M Resort has opened a new hotel tower, doubling its room capacity and adding ballroom space, with the goal of attracting more convention business that it currently cannot accommodate.