Georgia continues to lead the charge in route gaming growth, with approximately 6,000 retailers holding Class B Location licenses. Over the last decade, that consistent success has caught the attention of other states, whose legislative bodies have begun looking to the GA COAM framework for guidance.
However, now is not the time to rest on one’s laurels, and that is particularly true for multi-state corporations planning to expand skill gaming operations outside of the Peach State’s borders. As Nebraska, Pennsylvania, Wyoming, and others continue to hone their skill gaming legislation, they’ll also begin to innovate and become increasingly competitive in a soon-to-be crowded market.
Thus, there’s never been a more critical time for location operators to stay abreast of groundbreaking trends in skill gaming. When used strategically, these strategies can help cultivate a loyal customer base and streamline operational efficiency to maximize profitability.
When developing your enterprise’s long-term business strategy for route gaming revenue streams, consider investing in these four innovative gaming trends.
1. Progressive Gaming
Unlike conventional slots, where outcomes are left to chance, and players have no control beyond pulling a lever, progressive skill games raise the stakes by combining the thrill of large potential payouts with the delayed gratification of mastering a skill.
Progressive skill games require practice and patience. As the jackpot increases with each subsequent loss, patrons have to strategize and refine their techniques while immersing themselves in compelling gameplay and crystal-clear graphics that rival home console gaming. This heightened engagement reduces customer churn, as loyal patrons are more likely to return for repeated attempts at victory.
Furthermore, as players invest time in honing their skills, they are more inclined to make incidental purchases, such as snacks or beverages, which increase the average transaction value beyond the game itself.
For corporations interested in progressive COAMs, INAMAX exclusively works with the skill gaming industry’s top manufacturers, including International Game Technology (IGT), Banilla Games, and JVL Games, to bring our multi-state operators one of the most diverse game libraries available through a Master License holder.
2. Community Engagement
While skilled gaming is compelling in its own right, Location License holders (LLHs) may not be reaching their full revenue potential if they haven’t built up a community of players who consider the time they spend in a retail space as something more than transactional. Recognizing this, retail locations are becoming increasingly intentional about engaging with customers through their social media channels, as it’s an opportunity to keep the brand top-of-mind even when the customer isn’t in the store.
For business owners who are apprehensive about investing in COAM marketing, social media platforms present a cost-effective, user-friendly alternative with an impressive average campaign return on investment of 250%. Brands can engage with their existing audience while also attracting newcomers through promotional offers, first-time player discounts, and, most notably, user-generated content.
When players post about their top scores and big wins, they are particularly effective at authenticating the brand’s appeal because they do so through the lens of the consumer experience. This form of brand advocacy has a level of credibility and relatability that traditional advertising rarely achieves. In fact, it’s so effective that 77% of consumers trust consumer photos and videos for making purchase decisions, while 60% rely on user-generated content to learn about new products.
As the community grows in both size and closeness with one another, more members will be willing to share their own testimonials and positive experiences, expanding the venue’s footprint far beyond the confines of the store.
3. Clerkless Solutions
If there’s one thing that’s true across all businesses, whether brick-and-mortar or e-commerce, it’s that friction can stop customers in their tracks. Emerging data shows that consumers prioritize retail experiences that require the least effort to achieve their goals. More than 50% of people will switch where they shop if a competitor offers an easier customer journey.
Clerkless technology creates a more immersive COAM experience without the need for additional staff in gaming areas, keeping profitability and customer satisfaction high.
For example, LLHs can install self-checkout kiosks near gaming terminals, which remove the hassle of standing in a checkout line and encourage incidental purchases. Similarly, self-serve lottery ticket vending machines allow players to manage their redemption transactions at their own pace without sacrificing engagement or service quality.
Partnering with INAMAX also means that customers will never have to wait to play another round. Our COAMs have clerkless solutions built right into the terminals, so patrons use their Titan Player Card to enjoy a frictionless gaming experience with no kiosk or clerk needed. With a single swipe, they can reload their cards with funds, replay their winnings on a new machine, or redeem points for merchandise, lottery tickets, or a COAM gift card.
Once the gaming area becomes its own microcosm where players can access what they need when needed, staff resources can move out of transactional positions and into strategic ones focused on providing customer service that encourages lifelong brand loyalty.
4. Titan Redemption System
In the last few years, skill gaming has experienced a sudden and widespread expansion, with a growing number of consumers becoming interested in testing their abilities with this innovative form of entertainment. Even in states like Illinois, Ohio, and Georgia, where skill games have been around for years, large retailers have started building dedicated Game Rooms to meet the ever-growing audience of shoppers who want something more from their weekly trips to the supermarket.
So, what’s fueling this demand?
As mentioned above, when discussing progressive gaming, customers find skill games fun! They present a more engaging format than traditional gambling that goes beyond mindlessly pulling a slot machine arm or tapping the “Spin” button. Instead, patrons have to perfect their strategies and be in control of their own success. Winning feels even more rewarding because they have to work for it.
While that’s excellent news for retailers who are benefiting from the boom in their passive revenue streams, it also highlights the need for scalable redemption systems that can adapt to managing larger volumes of transactions while maintaining compliance with state regulations.
INAMAX’s pioneering Titan Redemption System redefined the gaming management system when it entered the skill gaming scene over a decade ago. Today, it continues to be at the top of its class. With the tap of a screen, LLHs can process route gaming transactions, compile sales reporting, and receive system notifications within a customized dashboard.
Unlike traditional redemption methods, which require increasing gaming staff to handle transactions as patronage increases, the Titan Redemption System scales with the business without any interviews or applications necessary. Our proprietary system is designed to improve COAM management practices and streamline all the information corporations need to monitor gaming operations. There’s no other system like it on the market.
If you’re a multi-state operator interested in starting the application process for a COAM license or are looking for a new Master License holder to increase your skill gaming profit potential, please contact a sales manager by calling 770.449.0400 ext. 700 or emailing info@inamax.com. We’ve helped retailers of all sizes plan, install, and manage their skilled gaming retail revenue streams, and we’d like to help you, too.