Major retail brands faced a litany of revenue challenges in 2023 that have carried over to 2024.
Rising costs of goods and labor, paired with supply chain issues stemming from the pandemic era, have hit retail brands hard financially. Other challenges, such as inflation and increased rates of retail theft, have also hurt national and regional players from a revenue perspective.
Many retailers have begun exploring new revenue streams, such as e-commerce and other online solutions, to enhance their omni-channel presence. Others have turned to optimizing the in-store shopping experience with self-checkout kiosks, smart shelves, and online inventory locators.
Yet one of the most profitable updates for major retailers has been the introduction of skill games and other retail gaming systems to in-store locations.
The trend is not vertical-specific—bars, restaurants, convenience stores, grocery stores, gas stations, and other storefronts have become hubs for skill games, sports betting kiosks, and lottery enthusiasts.
It is also not solely a small business or regional play—household names such as Walmart and Kroger have rolled out retail gaming systems to attract customers, drive foot traffic, and increase direct and indirect revenue totals through cash-in transactions and in-store purchases, respectively.
The Rise of Skill Gaming
The skill gaming industry has recently experienced a period of exponential growth. Fortune Business Insights estimates that the industry will grow from a market size of $35.61 billion in 2023 to $85.34 billion by 2030, a staggering 139% increase in just seven years.
The growth can be found across the U.S.—in Illinois, the state that the American Gaming Association has reported as the largest market for convenience electronic gaming devices (another term for skill gaming terminals), skill gaming generated $2.71 billion from 45,500 VGTs in 2022.
Georgia’s skill gaming industry is thriving, with data from Statista suggesting that the state produced roughly $20 million in skill gaming revenue in 2022 and is on pace to generate $35 million in annual revenue by 2027.
Nebraska is another prime example of the industry’s growth—the Nebraska Examiner found a 60% increase in skill game machines across the state over the past year, with over 5,800 licensed skill games operating at 1,611 locations, per state registration figures.
Much More Than Lottery Tickets
Lottery tickets and machines have also emerged as revenue streams for U.S.-based retailers. Industry titans such as ACME, Stop N Shop, and even Walmart have introduced new lottery kiosks to catch the attention and dollars of visitors.
Walmart, in particular, has gone to great lengths to increase customer engagement. A primary example is the brand’s strategic testing of alternate dimensions and configurations for lighted jackpot signs to be placed on the top of their lottery vending machines to increase lottery program awareness and total plays within their supercenter locations.
Most state governments receive a portion of the state lottery sales, either as tax revenue or direct contributions to public initiatives and state educational programs, further amplifying the popularity of the kiosks’ presence.
Multiple States Play Ball
Sports betting has been legalized by 38 states in the U.S. in some form (online or in-person).
Kroger, which operates hundreds of supermarkets and multi-department stores throughout 16 states, recently made headlines after opening sports betting kiosks in many of its Ohio-based stores. The sportsbook kiosks allow anyone aged 21 and older to insert cash and place a bet. As Ohio’s largest grocery chain, Kroger can leverage this new revenue stream and establish the brand as a reputable player in both the lottery and sports betting markets.
In addition to Kroger, other regional retailers such as Giant Eagle, Fricker’s, and Ralphie’s have also unveiled sports betting machines in their storefront locations in Ohio. In total, more than 900 retailers are offering the new kiosks in their stores.
The INAMAX Difference
The skill gaming craze presents exciting revenue-generation opportunities to retailers, but it also raises some concerns about costs, maintenance, and performance.
At INAMAX, our team leverages a data-driven approach to maximize revenue and enhance terminal performance across your retail locations. We analyze metrics such as player engagement, playtime duration per session, and revenue generation per game to develop actionable strategies and swap out underperforming terminals for more popular ones at each of your locations.
We believe consistency is integral to our partners’ success, which is why our team is built to adapt to the changing demands of our customers’ markets. We also pride ourselves on INAMAX’s Culture of Support, which provides our corporate partners with the 24/7, 365-day-per-year technical assistance needed to resolve maintenance issues and accelerate revenue growth.
To learn more about the INAMAX difference and the revenue-generating potential of our skill gaming terminals, please call us at 770.449.0400 ext. 700 or fill out our contact form to learn more.