Games and gaming have long been parts of revenue models for national retailers. Whether it be the sale of video games, board games, or lottery tickets, national chains have always had their hand in gaming in one form or another.
In recent years, major chains such as Walmart, Kroger, and ACME Fresh Markets have made headlines for their new gaming initiatives. These initiatives include sports betting terminals, automated lottery kiosks, and new skill gaming machines that allow players to redeem points for cash or prizes, depending on the cabinet’s location.
The number of online debates regarding the installation of these devices has skyrocketed over the past few months. Certain states are ironing out the legality of certain machines, while others are rapidly expanding their gaming footprint.
There is one question that appears to be at the core of discussions from consumers, both players and non-players:
Why are national brands embracing these new forms of gaming?
While revenue generation is certainly an attractive benefit, additional factors are driving this trend at the national level. Here’s a hint – brand perception, awareness, and consumer experience all play key roles in this new movement.
Taking the Over on Sports Betting Terminals
The sports betting boom is real. In 2019, sports gambling generated $900 million in revenue in the United States. In 2023, that figure jumped to a staggering $10.9 billion, according to data from the American Gaming Association.
It’s no surprise that major retailers want to cash in on the opportunities provided by the growing industry.
Data from Mordor Intelligence shows that the sports betting kiosk market was valued at $1.87 billion in 2022, and it is anticipated to reach a market value of $2.81 billion by 2028, at a CAGR of 6.71%.
In Ohio, Kroger and ACME Fresh Markets plan to install sports gambling kiosks in their storefront locations. They join over 1,100 other businesses that have applied for licenses to operate these machines. Enhanced accessibility is one of the most important drivers behind the new strategy, which seeks to elevate the consumer experience through new forms of interactive entertainment.
At Kroger stores, players aged 21 and up interested in placing a bet must submit valid identification through the kiosk’s self-service portals. Players can then insert cash and place their bet(s). If a player wins, they can cash their winning tickets with a Kroger staff representative.
The Lottery IS the Jackpot
Lottery tickets have been sold behind gas station and convenience store counters for decades. More recently, however, lottery kiosks have sprung up in states like Georgia, where stores like Walmart are installing self-serve GA Lottery kiosks.
In 2023 alone, U.S. lottery sales totaled over $113.3 billion. The consistent demand for lottery tickets makes it a lucrative revenue source for major grocery and convenience store chains.
Aside from the obvious revenue angle, there’s a brand perception play here – in many states, including Georgia, the state lottery directly supports public education programs.
According to the state lottery’s official website, the GA Lottery has contributed over $28 billion to the State Treasury’s Lottery for Education Account since 1992.
While slot casinos and other gaming terminals may carry negative connotations, lottery kiosks allow national retailers to position themselves as supporters of games that generate funds for great public causes.
The Emergence of Skill Gaming
There’s no debate regarding the rise of skill gaming terminals and their presence across the United States. Fortune Business Insights estimates the industry to grow from a market size of $35.61 billion in 2023 to $85.34 billion by 2030.
The cash-in transactions processed at these terminals are an additional source of revenue for retailers. Still, many store operators have also taken note of a lesser-publicized aspect of skill gaming terminals: the increased brand awareness.
Skill gaming terminals have been shown to help to increase in-store purchase volume. Players conducting local online searches for skill gaming terminals typically seek the nearest place to play. If that location happens to offer other products such as groceries, fuel, snacks, etc., there is a good chance they will spend additional money on said products.
In cities such as Milledgeville, Georgia, consumers are already taking notice. After a row of COAMs popped up in Kroger stores in the city and other regions around the metro Atlanta area, shoppers began acknowledging the presence of the terminals in-store and online. Most of the reception has been positive, with one social media user remarking on the ambiance brought about by the terminals, noting that the new addition was “giving off corner store vibes.”
INAMAX’s data-driven approach to route gaming is designed to maximize revenue and enhance terminal performance across all your storefront locations. We believe consistency is integral to the success of our partners. Our Culture of Support provides retailers with the 24/7, 365 days-per-year technical assistance they need to resolve maintenance issues and accelerate revenue growth.
To learn more about INAMAX and how your retail locations could benefit from skill gaming terminals, please call us at 770.449.0400 ext. 700 or fill out our contact form to learn more.