News

American Wagering develops kiosk that offers 24/7 sports betting

November 24, 2002

LAS VEGAS -- American Wagering Inc., Nevada's largest provider of computerized sports betting systems to casinos, has developed a kiosk that allows gamblers to bet on horse races, auto racing and other sporting events 24 hours a day, seven days a week, according to a report in the Las Vegas Sun.

Nevada regulators on Nov. 21 approved a sports and race betting kiosk concept that works somewhat like an ATM. The kiosk, which wasn't named, offers larger casinos a chance to increase sports betting volume by placing the devices in busy casino areas. Smaller casinos also could benefit by relying less on manned sports book operations, which are more expensive to operate than kiosks, according to American Wagering executives.

American Wagering still needs regulatory approvals to conduct a field trial for the device, which could be launched in casinos across Nevada by mid-April, according to the Sun.

The kiosks would compete with other sports betting devices already in place in Nevada but could become the first allowed any place on the casino floor. Putting a sports betting machine near more popular slot machines could boost play, American Wagering Chief Financial Officer Tim Lockinger told regulators.

According to the Sun, American Wagering's kiosks will use biometric, facial-recognition technology to match player data with their faces -- a feature that satisfies rules that prevent minors from gambling. The machines also will only allow players to gamble up to $3,000 in cash per day, though an unlimited number of vouchers and winning tickets may be placed back into the machine for further play.

American Wagering came up with the limit to satisfy federal rules governing money-laundering, Lockinger said. Casinos must typically document cash transfers of $10,000 or more with the federal government.

American Wagering will join several other companies that already provide kiosk services for gamblers. Las Vegas Dissemination Co. -- a company that supplies Nevada's casinos with updated horse racing data -- offers kiosks that allow gamblers to bet on pari-mutuel races.

And for the past two years, San Diego-based VirtGame Corp. has offered PC-based race and sports betting software to Nevada casinos. In October the company obtained regulatory approval to become a licensed manufacturer and distributor in Nevada -- a first step in a process that would allow the company to launch kiosks and other betting devices that also offer traditional games of chance along with sports betting.

To avoid increasingly contentious questions of legality regarding Internet gambling, American Wagering's devices won't use an Internet connection to transmit data, Lockinger said.

The kiosks also are only approved for use in Nevada, though gamblers don't have to be state residents. This is an important distinction to regulators because recent legal interpretations have found that Internet gambling across state lines is illegal under federal law. Regulators are currently exploring whether to regulate Internet gambling within Nevada.

VirtGame's wagering system also falls within current legal guidelines, according to the Sun, because it uses a private network connection, or "closed-loop" system, to transmit information. The company's systems also are only approved for use statewide.

American Wagering said it is working on future upgrades to the kiosks that would require a host of regulatory approvals before they ever come to market.

For instance, sports betting systems could move beyond kiosks to include wireless devices -- like miniature personal computers -- allowing casino gamblers to place bets poolside, the company said. Another device could allow players to place bets from their hotel rooms.

The company also is exploring the possibility of adding features such as community information and the ability to make reservations for restaurants, shows and other local activities.