What Stops Banks from Opening Branches in Casinos?

QoD discussed large sums of cash recently. What keeps banks from opening small branches in the casino building? I see them in Chicago supermarkets. I remember trying to make a credit card payment in a supermarket branch with cash many moons ago. They told me they didn’t accept cash. I think Ben Franklin was laughing out loud at that one.

Well, there's neither a legal nor a regulatory impediment, according to the Nevada Gaming Control Board, when we asked about the absence of bank branches in casinos.

Concurs veteran gaming attorney Anthony Cabot, “I am not aware of any gaming laws or regulations that would prohibit a bank from opening a branch office in a casino.”

“Good question,” says MGM Resorts International Senior Advisor Alan Feldman. “It's not a legal thing, so I must assume it’s more market-driven than image. Because customers tend to come from all over the country and around the world, no one bank would have enough of ‘its’ customers’ to serve. If it matters, local banks do often provide ATM services in the back-of-house for employees, where a likely higher percentage of one bank’s customers may be found.”

That still begs the question: Why don't locals casinos, with their theoretically stable and proximate customer base, have bank branches in them? We can think of three reasons.

One is that banks have image concerns about being in casinos (and providing problem gamblers with a nearby source of cash). Another more pressing one is the increasing centralization of bank operations, which has resulted in the closing of branch offices, including in small locations, such as supermarkets.

Third is the accelerating movement of the casino industry itself toward cashlessness. As American Gaming Association President Bill Miller told us, “For a long time, gaming was a primarily cash-oriented industry. And that still is the preponderance, but the pandemic has accelerated the industry’s experimentation with and successful implementation of contactless, mobile, digital payments.” He continues, “I don’t think we’re ever going backwards in that regard. It may well be in 10 years’ time that the design of the casino is completely different.

“It doesn’t have to be built like a fortress, because of all the cash that is housed within it. It opens up tremendous opportunities to think very creatively about how casinos are designed. That is one of the things that we probably didn’t think of when had to work our way through the pandemic, but the issue of cash has always been something that vexed me and we’ve made a great deal of movement toward accepting digital payments in every facet of the industry,” Miller says.

He goes on to point out that cashless transactions pervade every aspect of our lives, even as mundane as buying a cuppa Joe at Starbucks. Also, with increasing pressure on the casino industry to guard against money laundering, electronic transactions — which can be traced — are increasingly desirable.

We suspect that Miller is right and the cashless ship has sailed. Welcome to the new normal.

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Kevin Rough Jun-06-2021

Times have changed

When I first started gambling in the mid-90s, The Showboat casino in Atlantic City had ATMs from 5 different banks in its ATM alcove.  That way many different people could find free ATMs to withdraw money to gamble.  Now the casinos have discovered that people will pay for the high cost ATMs they have now.  Luckily my bank refunds that fee.

Allen Emory Jun-06-2021

Actually.....

With all the shopping arcades and malls on casino properties, it is a tad surprising there aren't any bank branches there.

Pat Higgins Jun-06-2021

Big tex

Funny experience.  Several years ago my bride (of 56 years) and I got to Vegas and realized we had left out gambling money at home. Between us we had only $200 of spending money.  After we got off the plane we headed to a branch of our home bank located on the south strip.  Problem solved.

Dave_Miller_DJTB Jun-06-2021

Why?

I gotta ask, why does the original questioner even want a bank branch in the casino?

I assume, based on the reference to recent discussions of large sums of cash, that you're looking for a way to not have to travel to Vegas with a large bankroll.

The casino can help you out on that one. Simply wire them money, or send a check with enough time for it to clear, and you can get the cash at the casino cage. It's like a casino credit / marker, but the limit is how much you send. FYI: It's called Front Money.

And the other reasons there aren't bank branches in casinos?

A - Cash. The casino will probably have more cash on hand than a bank branch, making Front Money a better choice anyway.

B - Rent. Banks won't want to pay the kind of rent being charged at a casino retail mall.

Donzack Jun-06-2021

Why?

Look around the casino and look at the people playing 6/5 bj, 000 roulette 95%vp etc. I think there are enough inexperienced travelers that would like to access their cash in a convenient manner. Plus I like to hand a large check to a teller instead of an atm. At 71 yoa I’m just more comfortable that way.

Doug Bergman Jun-06-2021

Really?

I would have assumed it was because the casino has its own quasi-banking services. Why would the casino want you to get cash from a bank atm instead of the casino's own atm where it can charge you a not-quite-too-expensive fee for it? Also why would the casino want to make it easy for you to deposit your winnings? If getting to the bank is difficult, and you have to hold on to cash, some proportion of gamblers will end up gambling more instead

O2bnVegas Jun-06-2021

gifts

They don't want to have to store toasters and knife sets for new customers.  LOL.

Candy

Hoppy Jun-06-2021

Money management

Doug explained an important fundamental of money management while in Vega$.

Scott Jun-06-2021

My Dad use to say...

My parents lived in Vegas in the early 60's when Dad was stationed at Nellis. Dad always talked about how they would basically use the casino's as banks back then to cash checks. He said the casino's would keep info on people on index cards. One time while trying to cash his pay check they said they couldn't because he had bounced a check there previously. Dad never bounced a check in his life, so he asked to see the card they had on "him". The card was actually on his Dad (my Dad was a Jr.) whom had divorced his Mom when he was a child and he hadn't seen him or knew where he was pretty much his entire life. The card had the home address in California (apparently they didn't worry about privacy issues back then and let him copy down the address). After hunting down his father, who wasn't interested in seeing him, he found out he had a whole bunch of step brothers and a step sister. He kept in contact with some of his step siblings for many years, right up until he passed away.

Question of the Day - 06 June 2021

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