SKILL GAMING:
Bringing back the arcade
S
lot machines are a massive part of casino profits. The spinning reels, now mostly on a video screen, are immensely popular and attract players from around the world in
hopes of hitting that elusive jackpot. No doubt these games will remain popular in the coming years, but a few companies are hoping to tap into the growing trend of cell phone-based gaming by utilizing video screens on the casino floor for something different – skill-based games that offer players chances to win cash like a traditional slot machine experience. The skill-based gaming segment of the gaming industry may be in its infancy, but many see it as a potential growth opportunity. New Jersey was the first to allow the new games in casinos and several other state gaming commissions are expected to give the go-ahead in the coming years. “The Nevada Gaming Commission has also
approved the introduction of slot machines that have a skill component to them and variable payout percentages as have gaming regulators in Massachusetts,” says Steve Doty, director of media relations with the American Gaming Association. “A number of other states, such as Pennsylvania, New York, and Maryland, have also been considering allowing skill-based games at land-based casinos.” Gamers may be often stereotyped as
teenagers in their parents’ basements, but the average gamer is 35 years old and has been playing for 13 years, according to the Entertainment Software Association (ESA). According to the ESA, more than 63 percent of U.S. households are “gamer households”, with at least one person playing video games more than three hours per week. Those numbers are of interest to an industry hoping to replace players who age with younger players looking for a gaming experience. So far, there are limited skill-based offerings
in casinos with New York’s GameCo Inc. leading the charge in the industry after debuting it’s arcade-style gaming offerings in Atlantic City in late-2016. Casino International
46 FEBRUARY 2017
spoke with several gaming manufacturers about some of their plans for skill-based gaming and where they believe the future of this segment of the industry is heading.
GAMECO GameCo CEO and co-founder Blaine
Graboyes sees gamers as one of the largest underserved and misunderstood demographics when it comes to the casino marketplace. “There’s no place for gamers to gather, socialize, play games, compete, and gamble,” Braboyes says. “On the other hand, casinos are the expert at providing a VIP, sexy, cool experience to patrons and have developed into integrated resorts providing a range of experiences from restaurants, bars, nightlife, and entertainment. Bringing video games to the casinos can produce an unparalleled destination that addresses the massive market of gamers and provides a new market for casinos.” Graboyes believes
products like what his company offer cater to a younger market segment and could offer growth potential to casino properties as their core audience of slot players “ages out and has not been replaced.”
“Slot machines generate
up to 75 percent of U.S. gambling revenue but generally have been stagnant or declining for the past two decades,” Graboyes says. “This is primarily due to demographic changes as older slot players have not
GameCo’s VGM
Gaming companies hope to capitalize on gaming explosion with skill-based casino options. By Sean Chaffin
been replaced with younger players. Skill-based gaming, or Video Game Gambling – as we prefer, provides a win-win for the casino to provide a new product to a younger audience and for video game enthusiasts to have a place to socialize and play in an adult environment. It’s also a win for game publishers and developers who are looking for new ways to connect with gamers, market their products, and generate new revenue streams.” GameCo’s Video Game Gambling Machines (VGMs) are a plug-and-play replacement for slot machines, but bring the player the experience of popular console and PC video games. In Danger Arena, players battle robots after making a bet between $1- 20 and has 45 seconds to eliminate as many Danger Bots as possible. Players who eliminate six robots in a certain amount of time are in the money and those who take out 10 bots earn the highest payout. The company plans on a similar skill-to-earn-payout strategy to new games in numerous genres including sports, racing, fighting, platforms, and casual games.
The company now has 30 VGM positions live in Atlantic City at Harrahs, Bally’s, Caesars, and Tropicana. In the eight weeks after going live, GameCo has been collecting feedback from players to understand their preferences and make improvements to current and future games. “Players generally love the game and love that there are finally new
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