Final report

4.5.2  Laundr omat Owner s and Oper ator s 
Details on the 5.1M laundromat coin acceptors can be found in the section entitled “Laundromat 
Owners and Operators” in Appendix 4-C.  Highlights include the following: 
x  The industry has a heavy dependence on quarter dollar coins (representing 96% of all 
coins collected); some equipment also accepts dollar coins. 
x  One of five machines does not accept coins for payment. 
x  Coin acceptors for laundromat machines are generally lower cost than those used in the 
vending industry. 
98 
While the standard terminology used in the industry may cause some confusion for those not familiar with the 
industry, bulk vending machines (a separate classification of machines) are not included in the 5.3M vending 
machines mentioned in the above report sections on large- and small-vending machine owners and operators. 
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x  The industry is very hands-on; typically owners/operators complete their own 
maintenance, upgrades and installation of new devices. 
Table 4-4 summarizes the conversion costs to laundromat owners and operators resulting from 
changes to US circulating coins.  Conversion costs associated with alternative material coins 
having an EMS that differs from incumbent US circulating coins, as well as changes to coin 
dimensions (defined to be diameter changes greater than 1% of current values and/or thickness 
changes of more than 3% of current values) are shown.  The costs are associated with all units 
being upgraded in the Fall of 2014.  An assumption was made that 20% of fielded coin acceptors 
manufactured prior to 2001 are replaced annually with units that can be upgraded by a software 
upload.  All coin acceptors manufactured after 2001 were assumed to remain in service through 
the Fall of 2014.  The net effective conversion costs due to corporate taxes of 20% are also 
shown in Table 4-4. 
Table 4-4. 
Conversion Costs ($M) for Laundromat Owners and Operators 
Coin Characteristic 
Changed 
One-Cent 
Coin 
5-Cent 
Coin 
Dime Coin 
Quarter 
Dollar Coin 
Half Dollar 
Coin 
Dollar Coin 
Immediate Out-of-Pocket Expense in Fall 2014 
Diameter 
None 
None 
None 
96.3–192.1 
None 
14.4–28.8 
Thickness 
None 
None 
None 
96.3–192.1 
None 
14.4–28.8 
Weight 
None 
None 
None 
None known 
None 
None known 
EMS 
None 
None 
None 
60.6–111.7 
None 
9.1–16.8 
Final Cost Impact at 20% Corporate Tax Rate 
Diameter 
None 
None 
None 
77.0–153.7 
None 
11.6–23.1 
Thickness 
None 
None 
None 
77.0–153.7 
None 
11.6–23.1 
Weight 
None 
None 
None 
None known 
None 
None known 
EMS 
None 
None 
None 
48.5–89.4 
None 
7.3–13.4 
Changes to coin characteristics are defined as follows (relative to incumbent US circulating coins):  diameter > 1% 
and thickness > 3%.  EMS is more complex and requires a detailed analysis from each coin-acceptor manufacturer 
to define when changes are required for their equipment. 
The number of turns per day (TPDs), i.e., the average number of times in a typical day that each 
machine is used, for public laundromat equipment is between 3 and 8 [12].  No similar statistic 
was available for the multi-housing industry.  If the average price to use a machine is raised by 
25 cents (an increment that is consistent with the industry’s heavy reliance on the quarter dollar 
coin), then the time required to recuperate the investment required to upgrade to new US 
circulating coins would be between 5 and 40 days.  The 25-cent increase in cost would represent 
an increase in prices between 5% and 12.5% of current rates, which typically vary between $2 
and $5.  If the public coin-laundromat industry took 12 months to recuperate their investment in 
upgraded coin acceptors, then the average cost increase would be approximately 0.1% to 1.4%.  
This is based upon the coin-laundry industry annual revenue of $4.165B [13] and 2.1M units in 
operation at approximately 35,000 public laundromats in the US [12]. 
4.5.3  Pay Phone Owner s and Oper ator s 
Details on the 425,000 pay phones [14] can be found in the section entitled “Pay Phone Owners 
and Operators” in Appendix 4-C.  Highlights include the following: 
x  The industry is in significant decline in the total number of units. 
x  Approximately 85% of pay phones rely on passive coin acceptors. 
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x  Virtually 100% of pay phones accept quarter dollar coins; approximately 90% accept 5­
cent and dime coins; none were found that accept one-cent, half dollar or dollar coins. 
Unlike many other devices that require coins to operate, pay phones are not typically serviced 
unless coin jams or other serious operational problems are reported.  Therefore, taking advantage 
of scheduled or unscheduled maintenance to simultaneously upgrade pay phones for alternative 
coins having characteristics (either dimensions or EMS) that differ from the incumbent coins 
would not lead to a significant reduction in the number of focused service calls to accommodate 
any upgrades.  Pay phone coin acceptors typically have a 10-year lifespan.  Table 4-5 
summarizes the conversion costs to the pay phone owners and operators resulting from any 
changes to coins.  As with the other stakeholder groups discussed above, the number of units 
projected for the Fall of 2014 is used (an annual reduction of 10% of total units was assumed for 
pay phones).  The net conversion cost resulting from corporate taxes of 20% is also given in 
Table 4-5. 
Table 4-5. 
Conversion Costs ($M) for Pay Phone Owners and Operators 
Coin 
Characteristic 
Changed 
One-Cent 
Coin 
5-Cent Coin 
Dime Coin 
Quarter 
Dollar Coin 
Half Dollar 
Coin 
Dollar Coin 
Immediate Out-of-Pocket Expense in Fall 2014 
Diameter 
None 
44.6–56.0 
44.6–56.0 
49.5–62.2 
None 
None Known 
Thickness 
None 
44.6–56.0 
44.6–56.0 
49.5–62.2 
None 
None Known 
Weight 
None 
42.7–54.1 
42.7–54.1 
47.4–60.1 
None 
None Known 
EMS 
None 
1.5–1.9 
1.5–1.9 
1.7–2.1 
None 
None Known 
Final Cost Impact at 20% Corporate Tax Rate 
Diameter 
None 
35.7–44.8 
35.7–44.8 
39.6–49.8 
None 
None Known 
Thickness 
None 
35.7–44.8 
35.7–44.8 
39.6–49.8 
None 
None Known 
Weight 
None 
34.2–43.3 
34.2–43.3 
37.9–48.1 
None 
None Known 
EMS 
None 
1.2–1.5 
1.2–1.5 
1.4–1.7 
None 
None Known 
Changes to coin characteristics are assumed to be (relative to incumbent US circulating coins):  diameter > 1%, 
thickness > 3% and weight > 20%.  EMS is more complex and requires a detailed analysis from each coin-acceptor 
manufacturer to define when changes are required for their equipment. 
4.5.4  Municipal Par king Officials 
The section entitled “Municipal Parking Officials” in Appendix 4-C provides the cost details 
used to compute the impact to parking meters (used by municipal parking officials) resulting 
from changes to US circulating coins.  Highlights include the following: 
x  There are an estimated 2.0M parking meters in the US [15]. 
x  A mix of passive (approximately 10% of total) and active (approximately 90% of total) 
units exist. 
x  Virtually 100% of the units accept quarter dollar coins; approximately 50% also accept 5­
cent and dime coins; approximately 50% of the active parking meters accept dollar coins; 
none were found that accept either one-cent or half dollar coins. 
x  The number of parking meters offering non-cash payment options is increasing. 
Table 4-6 summarizes the conversion costs to parking meters resulting from changes to US 
circulating coins.  Projections to the Fall of 2014 assume that the number of passive parking 
meters drops by 10% annually.  Note that no corporate tax effects on the net conversion costs are 
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shown since municipal parking authorities, who own and operate the majority of parking meters 
in the US, are not subject to corporate taxes. 
Table 4-6. 
Conversion Costs ($M) for Municipal Parking Authorities 
Coin 
Characteristic 
Changed 
One-Cent 
Coin 
5-Cent Coin 
Dime Coin 
Quarter 
Dollar Coin 
Half Dollar 
Coin 
Dollar Coin 
Immediate Out-of-Pocket Expense in Fall 2014 
Diameter 
None 
21.9–28.1 
21.9–28.1 
43.7–56.3 
None 
None Known 
Thickness 
None 
21.9–28.1 
21.9–28.1 
43.7–56.3 
None 
None Known 
Weight 
None 
None 
None 
None 
None 
None Known 
EMS 
None 
13.2–17.0 
13.2–17.0 
26.4–34.1 
None 
None Known 
Changes to coin characteristics are defined as follows (relative to incumbent US circulating coins):  diameter > 1% 
and thickness > 3%.  EMS is more complex and requires a detailed analysis from each coin-acceptor manufacturer 
to define when changes are required for their equipment. 
4.5.5  Amusement Machine Owner s and Oper ator s 
Details on the 1.7M amusement machine coin acceptors can be found in the section entitled 
“Amusement Machine Owners and Operators” in Appendix 4-C.  Highlights include the 
following: 
x  Quarter dollar coins dominate the amusement machine industry. 
x  Resident maintenance staff (or other on-site staff) complete most machine repairs and 
upgrades; they also install new equipment. 
x  The industry is dominated by passive coin-acceptance equipment. 
Table 4-7 summarized the conversion costs to the amusement machine owners and operators 
resulting from changes to US circulating coins.  The number of machines in the Fall of 2014 is 
assumed to be the same as that in the Fall of 2011.  The net conversion costs due to corporate 
taxes of 20% are also shown. 
Table 4-7. 
Conversion Costs ($M) for Amusement Machine Owners and Operators 
Coin 
Characteristic 
Changed 
One-Cent 
Coin 
5-Cent Coin 
Dime Coin 
Quarter 
Dollar Coin 
Half Dollar 
Coin 
Dollar Coin 
Immediate Out-of-Pocket Expense in Fall 2014 
Diameter 
None 
None Known 
None Known 
59.5–197.6 
None 
None Known 
Thickness 
None 
None Known 
None Known 
59.5–197.6 
None 
None Known 
Weight 
None 
None Known 
None Known 
None Known 
None 
None Known 
EMS 
None 
None Known 
None Known 
0–4.2 
None 
None Known 
Final Cost Impact at 20% Corporate Tax Rate 
Diameter 
None 
None Known 
None Known 
47.6–158.1 
None 
None Known 
Thickness 
None 
None Known 
None Known 
47.6–158.1 
None 
None Known 
Weight 
None 
None Known 
None Known 
None Known 
None 
None Known 
EMS 
None 
None Known 
None Known 
0–3.4 
None 
None Known 
Changes to coin characteristics are defined as follows (relative to incumbent US circulating coins):  diameter > 1% 
and thickness > 3%.  EMS is more complex and requires a detailed analysis from each coin-acceptor manufacturer 
to define when changes are required for their equipment. 
A vast majority of amusement machines have two coin acceptors, either of which can be used by 
a client.  If a quarter dollar coin of new dimensions and/or EMS was co-circulated with 
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incumbent quarter dollar coins, owners of amusement machines that have two coin acceptors 
could choose to have one coin acceptor for each of the two quarter dollar coin types, which 
would cut the impact of accepting two different quarter dollar coin types by an estimated 40% to 
50% over the values shown in Table 4-7. 
4.5.6  Gaming Machine Owner s and Oper ator s 
This industry has recently invested heavily in machines that no longer require or accept 
circulating coins to operate.  Fewer than 5% of gaming machines in operation accept any sort of 
circulating coins.  Today, casinos largely depend upon payment cards and tokens.  Small games 
of chance, common in taverns, are typically dependent upon notes or other forms of payment.  
Rarely do machines that accept circulating coins recognize one-cent, 5-cent, dime or half dollar 
coins.  Those that recognize quarter dollar and/or dollar coins are of an older design that is no 
longer domestically manufactured and is not well supported. 
Pending legislation, to more closely monitor the use of these machines, in some states require 
modifications to small games of chance that cannot be accommodated with the majority of the 
gaming machines that currently accept coins.  Enactment of this legislation, which is expected to 
occur in several states in 2015, will effectively eliminate use of coin-based gaming machines in 
those states.  In general, this industry was reluctant to provide many details about their 
dependence on coin use.  Therefore, it was difficult to confidently provide a quantitative 
assessment of the conversion costs required by this stakeholder group resulting from changes to 
coin characteristics and/or properties. 
From the limited information that was gathered for this stakeholder group, and based upon the 
cost to update coin validators for other stakeholders, it was assumed that this industry will only 
require upgrades if quarter dollar and/or dollar coins are updated.  In this analysis, 1.0M small 
games of chances are assumed to exist in the US; as of the Fall of 2011, only 5% of them accept 
quarter dollar and/or dollar coins. 
For a change in EMS only and projecting to the Fall of 2014 with an annual reduction of 20% of 
the number of machines that accept coins, the out-of-pocket conversion costs to update the 
gaming coin acceptors are:  low-cost estimate of $0.5M, high-cost estimate of $1.5M, and most-
probable cost estimate of $1.0M. 
These estimates are based upon a low-cost estimate of $25 per machine, a high-cost estimate of 
$75 per machine and a most-probable estimate of $50 per machine for upgrades to accept coins 
of a different construction.  Accounting for the net conversion costs related to corporate tax of 
20%: 
x  Low-cost estimate is $0.4M 
x  High-cost estimate is $1.2M 
x  Most-probable cost estimate is $0.8M for a change in the EMS of the quarter dollar coin 
and/or the dollar coin. 
If quarter dollar and/or dollar coin dimensions change, then the per-unit upgrade costs are 
assumed to be the following values:  low-cost estimate of $50; high-cost estimate of $250; most-
probable cost estimate of $100.  This would require out-of-pocket conversion costs for the 
gaming owners and operators with the number of units projected for the Fall of 2014 of:  low­
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cost estimate of $1.0M; high-cost estimate of $5.0M; and most-probable cost estimate of $2.0M.  
Accounting for the net conversion costs related to corporate tax of 20%, for a change in the 
dimensions of the quarter dollar coin and/or the dollar coin the cost impact would be as follows: 
x  The low-cost estimate is $0.8M. 
x  The high-cost estimate is $4.0M. 
x  The most-probable cost estimate is $1.6M. 
4.5.7  Tr ansit Officials 
As a result of distinctive and easily separated issues, transit official cost impacts are broken into 
two categories:  public transportation fare boxes and tollway collection units.  Each is discussed 
separately as noted below. 
4.5.7.1  Public Transportation Fare Boxes 
Details on this stakeholder can be found in the section entitled “Transit Officials – Public 
Transportation Fare Boxes” in Appendix 4-C.  Highlights include the following: 
x  There are approximately 60,000 public buses throughout the US. 
x  Approximately 40,000 of these public buses rely upon active coin-acceptance devices. 
x  Upgrades to fare boxes can be competed using existing transit staff. 
Industry experts expect the number of automated coin acceptors on public transit buses to grow 
in number over the next several years.  Assuming a growth of 10% per year, the number of these 
units in public buses in the Fall of 2014 would be 52,000.  Upgrading all 52,000 units would 
require conversion costs of $0.953M for a loaded-labor rate of $50 per hour, an average of 10 
minutes per software upload and a $10 per bus software upload fee.  Therefore, the impact from 
alternative coin designs to the bus fare boxes appears to be minimal relative to vending, 
laundromat, amusement and other stakeholder groups.  Note that no corporate tax implications 
exist for public buses, which are typically operated through local governments. 
Similar fare boxes on other forms of public transportation are assumed to be of similar 
complexity and magnitude.  All six US denominations of US circulating coins are accepted by 
the typical fare box, although many transit authorities do not accept the one-cent coin, while 
other transit authorities do not accept the half dollar coin for payment. 
For purposes of this analysis, the total fare box impact will be assumed double that for the public 
transit buses for total conversion costs of $1.907M to the public transportation industry as a 
whole.  For this analysis, these values are considered a high-cost estimate.  The low-cost estimate 
assumed here is based on existing maintenance staff uploading software as part of their current 
work activities, which means that no additional, unbudgeted labor costs are required.  Under this 
scenario, the only cost would be the assumed $10 software upload fee for each fare box.  For 
actual implementation, this scenario may require that uploads be spread out over a period of 
several months.  The conversion costs for the fare box stakeholder group for the low-cost 
scenario (in the Fall of 2014) is $1.040M.  The most-probable cost scenario (projecting to the 
Fall of 2014) assumes that half of the fare boxes will be upgraded by existing staff as part of 
their daily activities and the other half of the fare boxes will be upgraded by currently 
unbudgeted labor hours at a loaded rate of $50 per hour.  This most-probable scenario would 
require conversion costs of $1.470M for fare box upgrades.  In all three scenarios (low-estimate, 
206  

high-estimate and most-probable estimate), the cost impact would be the same for EMS changes 
as for changes to coin dimensions and/or weight. 
Fare boxes are replaced about every 10 years.  Due to the shock and vibration received during 
operation upon moving buses and other transit vehicles, these units receive regular maintenance 
on average every 6 months.  Presumably, most units could be reprogrammed with upgraded 
acceptor software as part of this maintenance work.  Doing so would reduce the realized 
conversion costs from those identified above as high-estimate. 
4.5.7.2  Tollway Collection Units 
Systems are in place to collect and accept coins at most facilities that have automated toll 
collection mechanisms.
99 
Such systems are common along turnpikes, toll roads, toll bridges and 
other motorized transportation systems.  Multiple forms of payment are typically accepted at the 
payment checkpoints; today, cashless forms of payment account for approximately 50% of 
revenue.  That percentage is expected to rise into the foreseeable future.  Coins are typically 
accepted for payment; however, one-cent coins are not universally accepted for payment through 
automated systems as a result of the processing time required to handle large sums of one-cent 
coins.  Industry best estimates are that less than 10,000 automated tollway coin collection 
devices exist throughout the US.  Given the harsh environment that these collection devices must 
endure, including weather extremes, road salt, potential foreign objects and other hazards, 
tollway collection units are ruggedized coin acceptors. 
In each scenario for the tollway collection stakeholder group, a $10 software upload fee was 
assumed.  In addition, it is assumed that only 50% of the units will accept one-cent coins.  The 
typical tollway site is assumed to have five coin acceptors.  A per site service fee of between $50 
(low-cost scenario) and $75 (high-cost and most-probable scenarios) has been quoted by various 
providers.  An additional cost element was assumed for the high-cost scenario:  the service 
technician will require an additional 20 minutes per unit to upgrade each coin acceptor.  This 
labor was assumed to be fully burdened at $50 per hour.  Assuming a total of 10,000 automated 
coin collection units, the estimated conversions costs for all US tollway collection units are a low 
of $200,000 for either EMS or coin size changes to a maximum of $417,000.  The most-probable 
conversion costs were estimated at $250,000.  No corporate tax implications exist for these fares 
as most of these operators are exempt from paying corporate taxes.  These costs would be 
required if changes were made to either the 5-cent, dime or quarter dollar coins.  Changes to just 
the one-cent coin would result in costs that are 50% of these values.  Presumably, changes to the 
half dollar and dollar coins would also require conversion costs of a similar amount as those for 
the 5-cent, dime and quarter dollar coins. 
One final note, an industry expert opined that in 10 years, 60–80% of the major tollway agencies 
will be cashless.  As such, the number of automated coin collection devices at tollway collection 
sites will be greatly reduced in the future and the actual conversion costs will be less than those 
stated here. 
The tollway collection stakeholders typically have a high-speed automatic coin separating and 
counting machine to service one or more cash collection sites, each of which receives customer 
coins from multiple coin collection units.  Collected coins are received by armored-car operators 
99 
The transit authorities annually collect $10.5B, which includes all forms of payment. 
207  

for credit to the toll collector’s account.  The impact of changes to these coin sorters/counters 
resulting from changes in coin EMS and/or dimensions is accounted for in the section below 
entitled “Manufacturers of Commercial Coin-Handling Equipment.”