Esports Arena Las Vegas to Open March 22nd

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Saturday, January 20th, 2018 | Written by Charles Washington

In June 2017, Nevada Governor Brian Sandoval approved a piece of legislation called Senate Bill 240 which was designed to make eSports legal in Nevada by the start of the following month. In so doing, Sandoval demonstrated that he had foresight to understand the lucrative opportunity presented by the industry, and that he had the passion needed to turn his home state into a major destination for global eSports competitions.

Esports Arena Las Vegas

Nevada casino operators have been slow to embrace the relatively new eSports industry, with MGM Resorts International pioneering the way after it partnered with the eSports production company Esports Arena and the network of eSports venues run by Allied Esports in order to launch its very own dedicated eSports arena. This was all announced back in April of 2017, with the goal of the partnership being to take the Luxor LAX nightclub and spend almost $9 million turning it into a professional eSports arena, the first such dedicated venue to be located on The Strip. Fast forward to present times and much of the work on the Esports Arena Las Vegas has been finished, with its opening date now set for March 22nd.

Needless to say, the venue’s much anticipated opening is being treated as a big deal for the city, with several gaming events planned over its opening period, such as an invitation-only live streamed eSports tournament lasting several days. This will take place within the arena’s 30,000 square feet space, which includes a a production studio, telescopic seating, and a 50-foot light-emitting diode video wall. The gala event will also be serving to visitors food created by celebrity chef Jose Andres.

Esports Industry Expansion

Casino operators in Nevada have worked hard to attract millennials, who favor skill-based games over traditional games found in casinos, like those featured on slot machines. This group of customers aged between 20 and 40 years old are known to choose imaginative games that test their skill levels, with the eSports industry subsequently targeting millennials, either as players or as spectators simply there to enjoy watching and following their favorite games and players.

Recognizing the potential of eSports to promote its brand amongst millennials, MGM Resorts has made it a company mission to position itself within the industry, and as Steve Zanella, MGM Resorts President of Core Properties in Las Vegas, stated recently:

“We recognized a while ago how esports has been growing and its great trajectory throughout the world. It’s great to see the acceptance and recognition it’s getting, and MGM Resorts is dedicated to taking esports throughout our entire organization, not only here in Las Vegas with Allied Esports but throughout the U.S. and the world.”

$1.5BN Industry by 2020

According to market intelligence firm Newzoo, the worldwide eSports market was forecast to be worth around $696 million in 2017, rising to as much as $1.5 billion by 2020. At this point, it is not known how much global eSports actually generated in 2017, but if these estimates are accurate then casino operators are sure to want to diversify into offering some type of eSport products that would then allow them to capitalize on the expanding industry.

As mentioned, MGM Resorts was among the very first casino operators in the Silver State to recognize the important role eSports can play in the future growth of the casino industry. Meanwhile, other casino operators will be keeping an eye on how the ESports Arena Las Vegas performs, and how much benefit MGM derives from it. If it goes well for MGM then more casino operators are sure to want to get involved in the industry, and invest in eSports.

Profitability Key to Growth

A major reason why casino operators have been slow to invest in eSports is because they aren’t sure if they will be able to generate enough revenues back in return. In addition, MGM Resorts hasn’t yet disclosed how it expects to make money from investing in its own dedicated eSports arena.

Steve Zanella, for instance, said that the company had the immediate goal of building a strong rapport with eSports gamers, without then going into how the casino operator would subsequently take advantage of the situation to generate extra revenues for the company. Meanwhile, Zanella pointed out that another objective of the investment was to prove people will visit the arena because of their interest in eSports, rather than initially setting out to try and attract vast numbers of people to the arena itself.

In other words, MGM is positioning itself to take future advantage of the growing industry by becoming involved early on in its development. That said, some analysts have speculated that MGM Resorts will sell day passes to the arena for $20, and that people who want to compete in eSports tournaments held at the arena will be required to pay a higher ticket prices in order to participate.

All told, launching eSports in Las Vegas in such a high profile way is sure to attract the attention of enthusiasts from across the globe, and expressing his optimism for the project, Chris Grove, co-director for the Nevada eSports Alliance, stated:

“It will start to give some shape to the esports identity of Las Vegas. All of these players in the esports ecosystem will have a reason to interact with Las Vegas differently.”