After kicking off its education program on Monday, the Global Gaming Expo (G2E) 2023 opened its expo hall on Tuesday, welcoming thousands of attendees to explore the latest novelties hitting the gambling industry. Running through Thursday at The Venetian, Las Vegas the event features an exhibition area of 269,000 square feet and 368 exhibitors, up from 252,000 square feet and 350 exhibitors in 2022.
The much-anticipated opening of the expo hall took place immediately after the traditional welcome address, delivered by American Gaming Association President and CEO Bill Miller. In his “State of the Union” speech, Miller touted the US gaming industry’s record-setting rebound in the post-pandemic era, which has now witnessed 10 consecutive quarters of growth.
While some concerns loom, including economic uncertainty, fears of a recession and high interest rates, Miller noted that “gaming has never been more popular with American consumers” than it is today, driven by growth across the board. “Brick-and-mortar, manufacturing, mobile sports betting, and iGaming are all driving the industry to historic highs,” AGA’s CEO stated in his welcome address.
Miller’s claim that gaming is at its most popular was backed by figures, with the trade union’s boss noting that a recent AGA survey found 49% of American adults gambled in the past year. But that popularity doesn’t only translate to the record-setting figures the sector has been posting as of late – Miller highlighted that gamblers are increasingly seeing casinos and other gaming industry stakeholders as “strong economic and community partners.”
According to the “American Attitudes Towards Gaming 2023” survey, about 71% of adults are aware of the industry’s positive economic impact, up 17% from a pre-pandemic study; and 77% of adults believe gaming creates “high-quality, well-paying jobs.” The industry’s efforts to promote responsible gambling initiatives may also explain this surging popularity, with Miller touting that 84% of gamblers and 94% of sports bettors are now aware of resources to keep gambling safe.
While AGA’s recent “Gaming Industry Outlook” survey found that US gambling CEOs are “cautiously optimistic” about future market conditions, paying close attention to headwinds that could potentially impact the industry’s growth, today the picture points toward expansion. Since G2E 2022, 12 new land-based casinos have opened across the nation, noted Miller, resulting in more than 1,000 properties in the US for the first time.
The same momentum can be seen in sports betting: five years after the repeal of the Professional and Amateur Sports Protection Act, the vertical has seen “explosive growth” with 35 states and the District of Columbia offering legal sports gambling in some form. While iGaming’s footprint is comparatively smaller, only live in six states and with Rhode Island set to become the seventh next year, its popularity is also on the rise, with Miller noting revenue in this vertical is up more than 20% from 2022.
Elsewhere in his speech, Miller highlighted the gambling industry’s growth on a global scale, driven by “a successful blueprint” that has created a sustainable, thriving business. Examples cited by the CEO of this expansion include Wynn’s planned resort in the United Arab Emirates, Brazil’s impending legalization of gambling, and MGM Resorts’ construction of Japan’s first integrated resort.
Cyber security takes center stage
Following Miller’s welcome speech, a line-up of recognized gambling industry leaders took the event’s main stage for the ‘View from the Top: CEO Outlook 2023’ keynote. Bill Carstanjen, CEO at Churchill Downs Incorporated; Jette Nygaard-Andersen, CEO of Entain; and Bill Hornbuckle, CEO and president of MGM Resorts International, shared their impressions on a three-part discussion moderated by CNBC’s Contessa Brewer.
In his speech, Hornbuckle gave new details about the September cyberattack that crippled his company for nine days. “It’s corporate terrorism at its finest,” he told a crowd of around 1,000. “You don’t wish this on anybody. It happened to hit us. It was partially socially engineered. And for a couple of weeks, to our company, it was devastating.”
According to the CEO, MGM took notice of the incident “early” and reacted quickly to protect data by shutting down systems by their own design. However, the company still found itself in an environment where for about five days some of its properties and systems were “completely in the dark” as telephones and casino and hotel systems were not functioning.
Despite the crippling effects of the cyberattack, Hornbuckle said he believes the hackers never reached customers’ credit card information and affirmed that MGM did not pay a ransomware demand to the attackers. “The way this came at us and the velocity at which it came at us, we reacted quickly. We protected data. We find ourselves now a couple weeks into this thing fully functioning,” MGM’s boss highlighted. “We have all our commercial systems back.”
While the attack is expected to cost MGM in the range of $100 million, Hornbuckle noted it is covered by cyber insurance and said that the company will emerge stronger than ever. One of the factors set to fuel this growth is the inaugural Las Vegas F1 race, which Hornbuckle said will be “the single largest event Las Vegas has ever seen.” The CEO noted the race is already driving growth for MGM, with its ADRs (average daily room rates), particularly in premium properties, up about 400%.
“We have looked at front money and credit, which is the measure we have going into any event, and it is two times the biggest fight we’ve ever had,” Hornbuckle said. “Manny) Pacquiao-(Floyd) Mayweather, a couple of years back, was the biggest event we ever had. Going into it with four or five weeks to go, it is the biggest event we’ve ever seen.”
A vibrant exhibition floor
The conversations immediately preceded the much-anticipated grand opening of the exhibition floor, with thousands of attendees flocking to The Venetian’s expo halls to discover the latest in gambling technologies. Some of the novelties of the 2023 edition include the all-new iGaming Zone, which brings together iGaming solution providers in a focused location; The Lab, focused on emerging trends and technologies; the G2E Networking Lounge, featuring themed meetups and events; and the New Exhibitor Zone, a dedicated area for first and second-time G2E exhibitors.
As for individual highlights, one of the products that caught the most attention of attendees includes IGT’s Whitney Houston slots. The developer showed off its expertise in intellectual property-based games with this game, introduced on new hardware with a 55-inch screen and featuring the legendary singer’s greatest hits. The game will be available in casinos beginning in the second quarter of 2024.
For its part, electronic table games (ETG) manufacturer Interblocked unveiled its latest innovation, a “hybrid” gaming experience offered by its new “smart pit.” The product, seen as a way to integrate into a casino’s live pit areas, has similar technology to stadium setups and features chipless technology to ensure accurate payout and efficiency.
Another Tuesday highlight was Aristocrat Gaming’s showcase of the very first official NFL slot machines. The company has worked with the NFL and the NFL Player’s Association to create six new games, with one of the games already in a few casinos, including The Venetian. All six games give the player the ability to pick their team and will also showcase highlights from the team to customize the experience, and are expected to launch before the Super Bowl.
Meanwhile, manufacturer Light and Wonder drew crowds with its new “Squid Game” branded slot, based around the hit South Korean drama show. The eye-catching novelty features a 75-inch screen that displays the reels as they move through different iconic moments of the show. The product is set to launch in the first or second quarter of the next year.
More G2E action to come
G2E 2023’s education program and the expo hall will run through Thursday, with more than 300 exhibitors and nearly 100 sessions confirmed for the entire event. This year’s expo is set to feature dynamic conversations on key topics in the industry, including combating the unregulated market, iGaming, digital payments and cryptocurrency, sports betting, Tribal gaming, regulatory developments, AI, and more.
The keynote sessions program continues today, Wednesday:
- The Playmakers: A Conversation with Amy Howe and Jason Robins – Sponsored by: Sportradar
Wednesday, October 11 at 9:00 a.m.
Main Stage – Venetian Ballroom F
Five years post-PASPA and with the expansion of online gaming, the evolution of sports, innovation in technology, and adoption of legal wagering have redefined the fan experience. This keynote discussion will dive into the state of online gaming, trends on the horizon, and what’s next for these industry leaders. Features Amy Howe, CEO, FanDuel; and Jason Robins, CEO & Co-Founder, DraftKings. Moderator: Contessa Brewer, CNBC
Educational panels can be consulted here.
