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Wednesday 9 august 2017 FEATURE
                                     A32

            Casinos embrace esports even as they work to understand it



            By WAYNE PARRY
             Associated Press
            ATLANTIC  CITY,  N.J.  (AP)
            —  Casinos  are  slowly  em-
            bracing competitive video
            game  tournaments  as  a
            way  to  help  their  bottom
            lines,  but  the  money  is
            coming  from  renting  hotel
            rooms  to  the  young  play-
            ers  and  selling  them  food
            and drinks, not from turning
            them into gamblers.
            Like most other ways gam-
            bling halls have tried to at-
            tract  millennials  and  their
            disposable income, it hasn’t
            been  easy.  Caesars  En-
            tertainment was first in the
            nation to adopt skill-based
            slot  machines  to  woo  mil-
            lennials in Atlantic City, but
            bailed on them after a few
            months when the response
            was underwhelming. Other
            Atlantic City casinos still use
            them, however.
            Competitive  video  game
            tournaments, known as es-    In this March 31, 2017 photo, video game players compete against one another in an esports tournament at Caesars casino in
            ports, are a growing indus-  Atlantic City, N.J.
            try  around  the  world.  The                                                                                                   Associated Press
            fast-paced  action,  vivid   ers  could  be  cultivated  Vegas,  and  that  was  the  he’s three years away from  competition,  “We’re  just
            graphics and often violent   to  embrace  casinos  for  first  time  I  went  to  a  ca-  gambling  legally.  But  it’s  here to shoot our guns.”
            on-screen  action  is  catnip   video  game  competitions  sino,  so  ever  since  then,  something  he’d  like  to  try  Wall  Street  sees  growth
            to millennials, the audience   the  way  their  parents  and  I’ve  been  gambling  quite  then. “I love Atlantic City so  potential  in  esports.  De-
            casinos  are  targeting  as   grandparents  went  there  a bit,” he said, listing black-  in a few years I would defi-  loitte  Global  pegged  the
            their core slot players grow   to play slot machines.     jack and roulette as favor-  nitely  come  back  and  ex-  worldwide  esports  market
            old and die.                 Gambling  requires  discre-  ites.  Alec  Collins,  of  Pied-  perience the casino a little  last year at $500 million, up
            But  it’s  been  difficult  to   tionary  income  and  free  mont, South Carolina, who  bit,” he said.              from  $400  million  in  2015,
            move them from the video     time,  things  that  people  goes  by  the  competitive  Until  then,  he  added,  re-  and estimated the industry
            console to the craps table.  starting  their  careers  or  name Shock, is only 18, so  ferring  to  the  video  game  has  a  global  in-person  or
            “Everybody’s  still  trying  to   families  may  not  have  in                                                      online  audience  of  nearly
            figure  out:  How  do  you   abundance,  said  David                                                                150 million people a year.
            make  this  appealing  for   Schwartz,  director  of  the                                                           Newzoo,  a  company  fol-
            the  consumer  and  make     Center  for  Gaming  Re-                                                               lowing  the  esports  market,
            sense for the business? How   search  at  the  University  of                                                       predicted  in  a  report  that
            do we all profit from this?”   Nevada-Las Vegas.                                                                    esports will generate nearly
            said  Kevin  Ortzman,  Atlan-  “The big question is wheth-                                                          $700  million  this  year,  in-
            tic  City  regional  president   er  people  who  are  40  or                                                       cluding media rights, ticket
            for  Caesars  Entertainment,   20  now  will  begin  to  play                                                       and  merchandise  sales,
            which  owns  three  casinos   casino  games  as  they  get                                                          brand  partnerships  and
            in the city.                 older,” Schwartz said. “This                                                           game  maker  investments.
            The  company  in  March      isn’t a given.”                                                                        The company projects that
            hosted  an  esports  tourna-  Schwartz  agreed  the  real                                                           figure  will  surpass  the  $1.5
            ment at Caesars that drew    money  for  casinos  in  es-                                                           billion mark by 2019.
            about 900 competitors and    ports  tournaments  comes                                                              One of the biggest support-
            spectators.                  from  ancillary  spending                                                              ers  of  esports  among  ca-
            The  bottom  line  result  was   on  food,  drinks  and  hotel                                                      sino  owners  is  Seth  Schorr,
            encouraging,  if  not  dyna-  rooms.                                                                                CEO  of  the  Downtown
            mite. “We certainly experi-  The  Caesars  video  tourna-                                                           Grand in Las Vegas, whose
            enced a spike in our hospi-  ment  offered  $200,000  in                                                            casino regularly hosts video
            tality offerings — the hotel,   prize  money,  including  a                                                         game  tournaments  that,
            food and beverage side of    $70,000 top prize, that lured                                                          he  said,  “make  a  little  bit
            things,” Ortzman said. “We   players  like  Jose  Mavo,                                                             of money.” But Schorr said
            didn’t see as much on the    of  Charlotte,  North  Caro-                                                           the  tournaments  offer  oth-
            gambling  side,  which  we   lina, who has been playing                                                             er  revenue  opportunities,
            weren’t  terribly  surprised   competitively for a decade                                                           including  suites  for  groups
            by.” But he said coming up   and has become a casino                                                                and meal packages.
            with ways to attract millen-  customer as a result of be-                                                           “Is  it  the  silver  bullet?  Of
            nials  is  a  necessity  for  the   ing  in  tournaments  hosted   In  this  March  31,  2017  photo,  video  game  players  compete   course  not,”  he  said.  “Is
            casino industry as a whole,   by gambling halls.          against one another in an esports tournament at Caesars casino   it  one  tactic  in  an  overall
                                                                      in Atlantic City, N.J.
            adding  that  esports  play-  “We  had  a  tournament  in                                          Associated Press  strategy? Of course it is.”q
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