Introducing coin-operated amusement machines (COAM) to multi-state locations offers corporations a practical, low-effort method to diversify revenue and improve customer engagement with minimal upfront investment.
Skill games also cater to the increasing consumer demand for interactive, in-store experiences. Category managers can capitalize on this growing interest to better position the corporations they work for to meet the evolving preferences of their clientele, ensuring they maintain a competitive edge in the market.
This guide for category managers will provide insights into COAMs as a source of passive revenue to make well-informed, prudent decisions while assessing the potential of skilled gaming areas in their locations and building an execution strategy.
Benefits of Skill Games for Retailers
Category managers drive retail innovation and enhance customer satisfaction to propel revenue upward, and these objectives can be met by integrating skill games into the retail space.
Alternative Revenue Streams
Skill games are a more straightforward strategy to diversify revenue streams, providing quick returns with the least effort. INAMAX machines require minimal investment—just the cost of the GA COAM Class B license, in most cases—and have low maintenance needs, maximizing overall profitability. Thus, category managers can meet their KPIs for enhancing the company’s product portfolio with services that drive financial growth without significant resource allocation.
In Georgia, where the business retains a 45% share of the revenue, partnering with a master license holder like INAMAX can result in an average of $5,000 in revenue per location per month, 16% higher than the industry average.
Improved Customer Satisfaction
For corporations needing novel ways to increase customer satisfaction, COAMs create a differentiated shopping experience that is more engaging and interactive than what the competition has to offer for both loyal customers and newcomers.
By building gaming areas, corporate locations can keep their relationship with existing customers fresh by providing them with a new experience that doesn’t affect their access to your primary offering. Rather, COAMs enhance the experience of running errands like grocery shopping and purchasing gasoline.
They also attract foot traffic, enticing customers from competing stores with a modern gaming experience and the chance to win prizes, such as merchandise, gasoline, and gift cards.
To ensure our clients have the right tools to keep customers interested, INAMAX Powered by Ultra collaborates with three top manufacturers—International Game Technology (IGT), Banilla Games, and JVL—to provide a rotating assortment of diverse games updated with the latest technology and hardware to appeal to a broad audience.
Our industry experts work with our corporate partners to create new, exciting machine mixes that encourage repeat visits and sustain interest over time.
Market Differentiation
Corporations exist in an oversaturated market, with many offering the same overall experience. For example, Walmart once stood out for its grocery pickup services, an offering that only 10.1% of retail chains in the Top 500 had before 2020. As of 2023, that number has grown to 47.5% of retail chains.
The takeaway is that as competitors adopt innovations, category managers are responsible for staying ahead of the curve, and skilled gaming is currently an underutilized resource with room to grow.
Current market projections estimate that the skilled gaming industry will grow by 13.3% CAGR by 2030, reaching a market size of $85.54 billion, up from the 2023 value of $30.99 billion. Corporations that invest in COAMs now have the opportunity to establish themselves as innovators within their industries and empower category managers to optimize operational efficiency.
Clerkless Solutions
Another advantage COAMs provide is that the games operate independently, requiring no direct supervision or interaction from staff for transactions. Businesses benefit from this setup because it doesn’t reallocate employee resources away from retail areas but still offers customers an engaging and satisfying in-store experience.
With INAMAX’s Titan Redemption System, each gaming terminal operates independently, allowing for a seamless customer experience and reducing the labor required to manage this alternative revenue source. Customers will also appreciate the simplicity of the Titan Redemption Card, which allows users to manage payments, points, and redemptions with a simple swipe.
COAMs: Challenges, Concerns, and Risks
While there are numerous benefits to incorporating skilled gaming into retail locations, it has challenges and risks, just as any other investment does. However, these are easily managed by an experienced Master License holder who can ensure smooth integration and operation of the machines.
Regulatory Compliance
Regulations for skill games vary by jurisdiction, which can cause concern regarding compliance for multi-state corporations.
Rather than managing these rules and regulations in-house, businesses would benefit from partnering with INAMAX, as we prioritize guiding our clients through every step of the licensing process, ensuring that all regulatory requirements are met and operations remain legal.
Our Culture of Compliance safeguards multi-state operators against legal and financial risks by providing each partner with in-house legal counsel who ensures our clients are always in compliance with local regulations across the United States.
Space Requirements
One practical challenge category managers face when implementing new revenue streams is accounting for additional space requirements. Strategic placement within each location will vary and requires foot traffic pattern analysis to identify high-visibility areas that don’t interrupt the flow of movement.
INAMAX makes it easier to capitalize on existing empty space in each store location, as they require only 5-7 square feet per machine. This small footprint maximizes profit per square foot and allows businesses to incorporate an additional revenue stream without sacrificing valuable retail areas.
Maintenance and Support
If a location’s COAMs aren’t operational, then they’re not profitable. And, because they require specialized maintenance and support, corporations may be hesitant to choose skill gaming as a revenue source.
INAMAX’s Culture of Support shows our commitment to providing our corporate partners with everything they need to maximize revenue growth, backed by decades of experience working with some of the biggest retailers in the nation.
Our support team is available 24/7, 365 days a year and is always ready to address technical issues and schedule service visits within 6 hours of submitting a ticket, making INAMAX a leader in machine uptime and customer service.
If you’d like to learn more about INAMAX and how we can help category managers generate thoughts of dollars in revenue, call us at 770.449.0400 ext. 700 or fill out our contact form.