IGT Secures Patent for Casino Cryptocurrency Payments

International Gaming Technology (IGT) Plc, the largest manufacturer of brick-and-mortar slot machines in the world is looking to introduce the use of cryptocurrencies as a payment option for its games in the near future. The good news came to light on Tuesday, the 5th of January, when IGT received a patent from the U.S. Patent and Trademark Office for the processing of crypto on its gaming machines in land-based casinos. IGT described the process in the patent filing as follows;

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"… the instructions cause the gaming establishment component processor to escrow the amount of cryptocurrency, establish a line of credit based on the escrowed amount of cryptocurrency, and modify a balance of a gaming establishment account based on the line of credit."

Essentially this means that the payment channel will allow players to transfer cryptocurrency from their online wallets to their gaming accounts in the casino. From there, the cryptocurrency would then be converted to fiat currency after a transactional fee. However, no details were disclosed about the transaction costs or any associated fees for the said transfers.

Information from the patent filing also has illustrations of a smartphone app that would be used for loading the crypto deposits and a slot machine in which the wager would hypothetically be placed. This tech will let players scan a QR code to access their crypto balance and load them to their accounts as a slot machine betting unit. Per the filing, the gaming giant only specifically mentioned Bitcoin and Ethereum (Ether), the two most dominant cryptocurrencies by market capitalization.

It’s also worth noting that the patent isn’t necessarily exclusive to the game manufacturer’s slot machines. The game creator is also known for developing some of the most immersive games in the internet gaming vertical including online slots, table and card game titles, lotteries, and sports-betting products. Thus, theoretically, there's a possibility that its online offering could also natively enjoy the same crypto flexibility.

Could this Be a Move to Offer Younger Gamblers a Friendlier Solution?

Younger gamblers continue to be a critical demographic for gaming companies and different brands are deploying different strategies to try and reel them in. Mind you, IGT itself conducted a study and discovered that more than 30% of the visitors coming to Sin City’s Caesar’s Palace are aged between 21 and 40 years old.

Now, get this; based on an October 2020 survey by the Tokenist, a revered media platform that offers the latest insights for the security token industry, the interest in Bitcoin has grown particularly among millennials due to the Coronavirus pandemic. Furthermore, 44% of millennials interviewed in the survey have plans to invest in Bitcoin in the next 5 years, and 59% of the same demographic feel that most people will be using BTC by 2030.

And by the way, Sin City already has a slew of Bitcoin ATMs even though casinos have only been allowing customers to buy food and drinks. The crypto option hasn’t yet been rolled out on casino floors but from the look of things, casinos could soon allow it. Moreover, in 2020, Nevada’s gaming regulator, the Nevada Gaming Commission finally decided to give the green light for players to transfer money from digital wallets to their gaming accounts.

Thus, it only makes sense that IGT is focusing more resources on the facilitation of cryptocurrency payments to cater to millennials who have of late become a core customer base for gambling services. In a press statement to Bloomberg, IGT spokesperson, Phil O’Shaughnessy clarified the company’s latest move saying that;

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“IGT obtained this patent to bolster its industry-leading patent portfolio in anticipation of any possible future directions in regulated games involving cryptocurrencies,”

Another Big Win for IGT This January

Still on the subject of IGT’s innovation, on the same day that the company received its crypto payments patent, IGT also completed its final stage of regulatory approval in Nevada for its carded cashless module, the Resort Wallet. This new cashless module will offer players in the state an opportunity to enjoy safer, and more secure contactless payments as they spin slot machine reels on the casino floor.

IGT’s new Resort Wallet solution will offer customers three modules of payment. First, the card can be used as a loyalty card for cash transfer sto a secure digital wallet, then players can use a pin code to activate the card for plays. Secondly, through the same Resort Wallet, players can use a Cashless Wagering Account via a smartphone app to pay for their slot machine gaming. The third payment module involves using the dedicated mobile app to transfer money from external sources like credit cards or e-wallets so that they can pay for games in the casino.