In order to manage the high volume transactions of the casino gaming sector, delivery of cash access services and products must be delivered in a way that is different from traditional merchant transaction processing.

Gaming Industry:

The US gaming industry has operations in more than 40 States, and is estimated to generate $90 billion annually (Data: American Gaming Association). Access to cash is available in many venues including the casinos in Las Vegas, Atlantic City and Riverboat Casinos.

With 70% of gaming revenue coming from cash access products, gaming operators are in a critical position. Sightline Payments LLC is a trusted third party company that provides these services to gaming operators. Our estimates of the North American Gaming Cash Access market are $25 billion annually. There are over 100,000,000 transaction approvals vworld my. This generates an estimated $950M in industry revenue.

Sightline Payments (PRIVATE. Sightline), Global Cash Access, Inc., Global Payments Inc. (NYSE : GCA), and Global Payments Inc. (NYSE : GPN) are the largest providers of these cash access services with an approximately 90% market share. The 10% remaining is divided between other providers such as Money Centers of America, DiTronics Financial Services and ASAI.

Here’s a description of some of the most common Cash Access Services you will find in a casino.

* Credit Card Cash Advances – Smart Station Advances: Gaming patrons can access funds up until a limit set by their bank. Average consumer fees are about 6% of the requested amount.

* Debit Card Cash Advances – POS debit cards transactions are processed in the same way as regular merchant transactions. Patrons can access funds up to the cardholder’s purchase debit limit. This limit is typically higher than the daily ATM limit. The average consumer fee is 3.5% of what was requested.

ATM and ATM3X: The ATM allows patrons to withdraw funds from their savings or checking accounts. A daily limit of $300 is required. Average consumer fees are $4.00 per transaction. Recent developments in the industry include the migration of ATM services onto Glory or NRT and Western Money Redemption and Bill Breaking Devices.

* Check Cashing (Certegy or Global Payments: Provides check verification, processing and guarantee services that allow patron checks to be cashed at the casino’s cashier. The fees are usually negligible, though fees can exceed 6% in certain regions.

* Gaming Credit and Markers. Casinos subscribed to credit bureau services in order to receive detailed credit information. This is used to issue markers or credit to patrons. These services are usually reserved for casino’s “high-end” players and do not charge any fees.

Cash Access Services’ principal expenses and costs include:

* Casino Commissions – Service providers receive a commission from the gaming establishment where the transaction was made for cash advance, ATM or check cashing transactions.

* Interchange & Processing: Service providers are paid interchange fees by credit card associations like Visa or MasterCard to settle transactions that they route through their networks. Fees are also charged to be a member of various credit card networks and ATMs. The card associations and networks determine the interchange fees and they vary depending on which network is used and how much money is requested. Providers of network services are charged processing fees and connectivity fees.

* Check Cashing Warranty – Check cashing warranties refer to costs incurred in connection to dishonored cheques that are warranted.

* Operating expenses: These expenses include salaries and benefits, armored carriers expenses, repair and maintenance costs for cash access devices, and other expenses.