EventsIndustryResearch

Esports & VR: Casinos’ Upcoming Star Attractions

October 15, 2016 — by Gamesauce Staff

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EventsIndustryResearch

Esports & VR: Casinos’ Upcoming Star Attractions

October 15, 2016 — by Gamesauce Staff

This is part of a series on the convergence of video games and the casino industry and opportunities for non-casino game developers. Part 1 focused on mobile games. Part 2 focused on skill-based games. This is the final article in the series and focuses on esports and virtual reality.

Esports and virtual reality are coming to casinos. At the Downtown Grand in Las Vegas, esports have already arrived and at the Global Gaming Expo (G2E) esports and virtual reality were on display in major ways. Multiple panels were dedicated to the topic of esports and Gamblit Gaming showcased the possible future of VR and esports on casino floors with their G-Sports station and Virtual Reality Cube (VRC).

Driving Traffic with Esports

Chris Groves, a senior consultant with Eilers & Krejcik Gaming, notes that esports is reaching mainstream appeal if it isn’t there already. Two NBA teams have bought esports teams, the first esports lounge opened this year, and the convergence between gambling and esports is growing.

In the Esports and Casinos: The Coming Collision panel at G2E, Chris rattled off various statistics: 23 million video gamers visit casinos every year and are in the top-income bracket, 70 percent of esports fans are over 21, 37 percent of esports fans are willing to pay over $99 for events, esports fans are twice as likely as others to gamble online, and so on.




Esports and video game enthusiasts are an important segment of the population for casinos to be targeting. They like to gamble, have disposable income, and are already visiting casinos in droves.

Casinos certainly have the capacity to cater to esports crowds. GAN VP of Sales & Marketing Dana Takrudtong notes that casinos have beautiful venues and can make revenue off of esports events. The Downtown Grand in Las Vegas currently runs various esports tournaments and events to appeal to this crowd.

Seth Schorr, the CEO of Fifth Street Gaming and chairman of the Downtown Grand, says esports are great for introducing casinos to younger generations – and Oklahoma Indian Gaming Association Executive Director Sheila Morago notes that people who come to esports events may take advantage of other amenities even if they don’t gamble.

VR as an Attraction

Much like esports events, Gamblit’s VRC has also been seen as more of an attraction piece by casino operators. It is just as much presentation as it is entertainment, with the player wearing a VR headset and gaming on a raised platform inside a clear cube while smoke machines and lighting effects add energy to the experience for people watching.

Screens outside the cube allow spectators to place side-bets on the player’s performance and see everything the player is seeing in-game. At G2E, the VRC consistently had a huge crowd and line. People taking pictures and video of the cube and its users were a regular sight – proving its worth as an attraction piece.

More Than Events

Ultimately, however, many people believe that attractions are not enough and there is a keen desire to turn interest in esports into gambling on the floor. Seth notes, however, that current slot products do not appeal to esports enthusiasts and casinos can’t confuse intellectual property with success. Sticking Call of Duty on a slot machine will not lure gamers, Seth says, skill needs to be a part of the equation – noting that even blackjack, which requires some skill, appeals more to esports audiences.

Casinos need to go farther than simply hosting esports events. Esports needs to be brought to the casino floor.

Gamblit is attempting to address this with their G-Sports station which they showcased at G2E. The station uses a leaderboard and PC game Road Redemption to have players compete against each other in a fee-based, timed tournament. As more players cash in and play the prize pool goes up. Gamblit CMO Darion Lowenstein noted at G2E that they had people coming back repeatedly to check the leaderboard and play again to up their score.

GameCo, which is currently focused on skill-based game experience for casinos, will also be jumping into the esports arena to get competitive gaming onto the casino floor. GameCo CEO Blaine Graboyes notes that they plan to add tournament and competition controllers to their products so people can come to the casino floor and compete for prizes and cash.

Enter Developers

While a lot of the partnerships between casinos and esports right now centers on esports teams and events, there is a lot of potential for esports developers to take an active role in what is happening inside casinos as well.

As esports becomes integrated more into casinos, Sheila notes that it is likely that casinos will want to work with, partner, or own esports products rather than teams. Blaine echoes the sentiment saying that, as the EDM and DJ eras come to an end there will be a lot of floor space and opportunities for esports developers at casinos.




For developers interested in working with casinos, Foxwoods Interactive Director of Administration Frank Pracukowski has some advice. First, attend industry events and network with casino operators and manufacturers. Second, make sure you research the casinos you are considering partnering with – including what their physical locations offer. Finally, study licensing and regulatory issues and consider partnering with someone who already has those under their belt.

And it works both ways. Ultimately, Frank says, casinos need to get out of their boxes and see what kind of different products are out there. “As a casino operator we have to offer different games to different skill levels and age groups.”







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