Staying in the Game

I have just returned home from Las Vegas today following a very full week at the Global Gaming Expo – also known as G2E. G2E is a great place to connect with people in the gaming industry from around the globe, see new products and get a sense of what issues are trending. All-In Gaming & Hospitality Advisory Group was well represented – Helen, Nic, Shawn, Joanna, and I were all in attendance.

As we have mentioned many times before in this blog, “Millennials” have been a focus for the casino gaming industry. That hasn’t changed, although several people we spoke with during the conference are getting fatigued with the language and the constant complaints about this demographic. The All-In team has taken to referring to the group of consumers the industry needs to engage with to ensure sustainability, as “connected, social entertainment seekers.” How to engage this behaviourally defined group is a shared challenge for both operators and game manufacturers. The traditional casino experience is not going to attract new customers, nor will it retain them as everyone knows.

This year during G2E we noticed that the game manufacturers are making real efforts to present social, interactive games in hopes of offering new experiences. These games came from newer entrants into the market, including Gamblit — their grab poker game and fresh thinking were standouts for us at G2E 2015. Gamblit now has more games that combine skill-based play and random chance. Even better news, their games are approved for use in some American markets. We have heard rumblings that one province in Canada is also close to approving skill-based games, possibly before the end of the year. Manufacturers are structuring the games that combine skill and randomness to minimize the risk of a “pinball wizard” beating the house. What’s more, operators are going to like their odds. One manufacturer indicated that a game we tried had a 10% hold rate.

Traditional game manufacturers like Konami, IGT and Scientific Games are also working to evolve their product. We are seeing more multiplayer games. These games allow players to play with or against one another, so they aren’t just sitting next to each other. It was also interesting to see some of the games were cooperative, meaning players worked together to achieve an outcome, and others were competitive. There were also some virtual reality options on display including one game where you ride the elevator to the top of the famous "Wall" from Game of Thrones.

There was lots of buzz about “Topgolf.” (Beer pong seemed to be less of a craze than it was in 2015). Topgolf is another type of destination activity to draw people to casinos. It is technology based and oriented to groups. There is virtual golf played, along with eating, drinking and social engagement. Apparently no golf skill is needed. We met a Lyft driver who is a sous chef at Topgolf for his day job. He told us that the capital investment to build Topgolf near the Las Vegas Strip was $80 million USD. An investment of this nature would need to be scaled for a Canadian operator to consider and the operator would need to be clear on the business objectives driving the decision. The driver also told us he was hoping to move to Vancouver to work at a Topgolf facility that was opening next year in BC.

Speaking of Lyft, conference participants received a $50 Lyft credit - $5 off each of 10 rides which made getting around Vegas much more cost effective. I don’t know if the Lyft team approached the conference organizers or the other way around, but this acceptance of the sharing economy marks a new phase. The resort casinos are on board too, new signage is everywhere showing where people can access their rides on Lyft and Uber, near the taxi pick-up.

Helen, Shawn and I launched our new product, a game called Play the Field. The response was extremely favourable. Play the Field helps address the business issue of customer renewal. It operates on your smart phone and uses augmented reality to keep casino properties top-of-mind, attract new customers, and serve as an integrated part of the on-site casino experience. Judging from the response, our game is tapping into an area the industry knows it needs to explore…. The secret to success will be in the execution as it always is. Will the casino experience meet the expectations of social, connected entertainment seekers? Will the industry’s concern about security slow down the implementation? These are all questions we hope to answer to in the coming months.

There is always opportunity to do things differently and make your business more successful. I love having time to observe, learn and share like we had this week. Change is coming to the casino floors, but it’s an evolution, not a revolution.

#CanadianGamingIndustry #ProblemSolving #AllIn