Casinos lose about $5 billion annually due to outdated Casino Management System (CMS) enrollment methods, a new study from casino loyalty and technology developer Acres Manufacturing Company says. The findings are part of a new position paper Acres released as part of its ongoing series exploring the state of casino loyalty tech.
The position paper details the significant negative impact of the player enrollment process driven by legacy CMS technology on casino operators’ cost structures and “their ability to benefit from meaningful new revenue opportunities.”
Key highlights of Acres’ CMS enrollment position paper include:
- Casino customers spend about 1.1 billion minutes annually waiting in line for a player card, which Acres says results in annual revenue losses exceeding $1.75 billion.
- More than 80% of the 110 million player cards printed annually are reprints for existing members.
- In total, the U.S. casino industry spends nearly $3 billion annually on the issuance of physical player cards, with additional billions lost to customers who “avoid the cumbersome enrollment process and therefore never become loyal players.”
In contrast, Acres projects an additional $2 billion in annual revenue from exponential database acquisition growth enabled by its CMS technology, Foundation HQ, which also allows for features such as the provision of real-time data from slot machines and a direct interface to the credit meter on any slot machine.
“The casino industry’s continued reliance on the physical loyalty card, which has become extinct in virtually every other industry, significantly hinders casino’s ability to attract and retain new players,” said Noah Acres, of Acres Manufacturing. “New modern CMS technology is needed to overcome this nearly $5 billion economic impact caused by the significantly outdated technology capabilities of legacy CMS solutions.”
“Our Foundation HQ CMS addresses consumer preferences, thereby helping casinos massively scale new database acquisition by offering and incentivizing a ten-second enrollment process to any uncarded player during the play session without the need for a physical player card,” added Acres.
Noah Acres further encouraged “all industry constituents” to review the company’s continuing series of position papers, which he said highlight “the benefits of our approach to casino loyalty technology.”
The position paper was informed by a survey of over 70 US casinos, notes the company, along with earlier installments analyzing the state of CMS offerings. The report is available for access here.
Original article: https://www.yogonet.com/international/news/2023/07/27/68072-casinos-lose-5b-per-year-due-to-outdate-cms-enrollment-method-says-acres-manufacturing-study
