Hi, was just always curious about this:
How do ATMs work in terms of when they’re paired with slot machines?
I sometimes see ATMs near slot machines and don’t understand how they profitably make money. I get they charge like a £3 fee or something for convenience but if a person withdraws like £50 and inevitably loses it all to a slot machine that means you only make £3 profit if it’s your own money in the ATM.
I also hear about third parties lending you money or something like that but I don’t know what the companies are and I don’t really understand how that works either in terms of how it’s profitable for both parties.
Many thanks to anyone who takes time out of their day to respond. I’m kind of just looking into the slot machine business because I hear it can be very profitable if you build up a lot of them.
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You’re overthinking where the money comes from and where the money goes. Imagine you had the opportunity to buy a magic box and put it next to a slot machine. People occasionally push the button on your magic box. Every time someone decides to push the button, you get £3. That adds up pretty quick. Over time, you recoup the cost of the magic box and turn a profit.
There is money involved here, obviously. But as owner of the ATM, you don’t give out your own money. Every time you hand out money, the bank that money was withdrawn from gives you the money back, instantly (electronically). That part is a wash. The same amount of money goes to you as you pay out. But you keep the £3 every time someone uses the machine. Imagine how that adds up over 1000 transaction, or 100,000.
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