THACKERVILLE, Oklahoma – The raw numbers, said eSports consultant Joe English, should catch the casino industry’s attention.
In 2017, some 73 million viewers watched through various channels the League of Legends World Championship event, when Samsung Galaxy defeated SK Telecom 3-0. Both teams are from South Korea. That same year, 20 million people watched the NBA Championship Finals as the Golden State Warriors defeated the Cleveland Cavaliers, 4 games to 1.
Joe English, eSports consultant
Speaking Thursday on the final day of the GameOn conference – produced by gaming equipment provider AGS at the WinStar World Casino Resort – English added a few other statistics during his 45-minute discussion.
According to the World Economic Forum, eSports attract an audience of 380 million people, broken up into five categories – fans, casual players, enthusiasts, aspiring profession players, and eSport pros. Fans make up the largest category of the eSports community as a whole, 49 percent say they spend of their time around eSports, and 60 percent are willing to travel to events.
“This is something you should consider if you have an event center,” English told audience, many of whom were executives or managers of casino gaming floors.
Note that gambling on eSports wasn’t mentioned. English spent only a few moments discussing how gaming might connect to the activity, citing an Eilers & Krejcik Gaming report on the subject that estimated a potential wagering market of $13 billion by 2020.
In an interview after his talk, English said the non-gaming spending habits of eSports players and fans should interest the casino industry, especially in a market such as Las Vegas, where nearly 65 percent of the Strip’s total revenues come from nongaming activities.
“Esports players and fans will come if there are venues,” English said, adding that it offers another element to a casino-resort visit. “Mom wants to play slots, and Dad and the kids will go play eSports.”
The activity has been embraced in Las Vegas. The Downtown Grand opened an eSports lounge in 2016, replacing the casino’s high limit table game area, and Luxor on the Strip built a 30,000 square-foot eSports arena in 2018 that is multi-level, hosts tournaments, and charges for game play – $15 per hour, $50 per day and $125 for weekend play. Aria, within the Strip’s CityCenter complex, opened a 10,000 square-foot facility for tournaments in July of last year. Last week, the Linq Hotel opened its Re:Match Bar area, which includes an eSports area with 24 stations.
Gambling is not part of the equation, for now. English agreed with an audience comment that state and tribal gaming authorities would need to create regulations covering major eSports events and tournaments.
English said a gambling “catastrophe” involving an eSports tournament would be a large setback.
“It’s still the wild, wild west,” English said. “Development is happening so quickly. Fortnite (a popular eSports shooting game) wasn’t around (until 2017). The (International Olympic Committee) wants eSports as part of the Olympics. Everything is really in flux.”
AGS CEO David Lopez said the eSports presentation was added to GameOn because of the curiosity the gaming industry has with the activity. He commented that the topic drew the largest number of audience questions over the two-day conference.
For now, Lopez said AGS was considering an eSports venture, although the Las Vegas-based company currently has its plate full creating traditional gaming products. However, he said he did see a time when eSports companies and product creators might become a vendor to a licensed manufacturer because of the stringent nature regulators place on a gaming license.
“You could (see) these companies not wanting to deal with the process (themselves) and work with a licensed manufacturer,” Lopez said.
English gave an overview of what makes up eSports: the types of games offered and how mainstream companies and products are embracing the activity. The NBA has created its own eSports league in which teams are associated with its franchises.
Merchandising has also become a large financial windfall for eSports, similar to the sales of professional and college sports jerseys, hats and other products with a team’s logo.
Sports bars and taverns are beginning to market to eSports fans who are seeking locations to watch televised matches.
In 2017, Dallas Cowboys owner Jerry Jones acquired a majority stake in compLexity Gaming and built the 11,000-square-foot GameStop Performance Center, an eSports venue across the street from The Star, the NFL team’s headquarters and training facility.
English told the GameOn audience he was a little disappointed that the eSports center wasn’t open Wednesday evening, when conference attendees visited and toured The Star.
“I wanted to go over and buy a jersey,” he said.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
