Inside Asian Gaming

INSIDE ASIAN GAMING NOVEMBER 2018 28 70% 63% 55% 48% 40% COLUMNISTS From eSports arenas to social bowling venues, Las Vegas integrated resorts continue to reinvent themselves from a non-gaming perspective. Recognizing the revenue split of non-gaming to gaming, the focus on non-gaming innovation is justified. In terms of absolute floor space, gaming floors undoubtedly continue to shrink within integrated resorts, from already miniscule levels – now frequently less than 5% of total gross floor area. Throughout its history, Las Vegas has transformed itself from the epicenter of gaming to the epicenter of entertainment. Is Vegas’s transformation a sign of things to come for gaming markets throughout the rest of the US and the globe? Recognizing that gaming revenue will be the main driver for the top lines of regional properties for the foreseeable future, how then can these properties learn from the Vegas bellwethers and other regional players? Examining completed and announced non-gaming amenity developments over the past several years from forward- looking developers and operators reveals key considerations for future non-gaming development. ESPORTS AND VR In response to the ever-growing popularity of eSports in Asia, Melco Resorts & Entertainment opened the Macau eStadium at Studio City this summer. Other than hosting major multi-player eSports tournaments and promoting live-streaming of eSports events taking place outside Macau, the venue will also be equipped with more rooms where eSports training and other activities can be held. To take it even further, it is reported that Melco’s development effort in Japan will involve the integration of an eSports stadium into a future casino resort in the country. Studio City is also set to feature the largest virtual reality (VR) zone in Asia for the 2019 Chinese New Year, with fantastic entertainment and cutting-edge technology MGM Resorts added the hugely popular Topgolf facility at MGM Grand in Las Vegas in 2016. Non-Gaming Revenue as Percent of Las Vegas Strip Total Revenue 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 Source: Nevada Gaming Control Board Both destination and regional gaming facilities are expanding their non-gaming offering to include unique amenities such as Topgolf, social bowling experiences and indoor waterparks among others.