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With new arena, Vegas is betting big on esports

The casino industry hopes esports will attract the 15- to 34-year-old millennial crowd, who are less interested in traditional gambling than previous generations.

From their perch overlooking a legion of screaming fans, television cameras and an immersive high-definition video wall, announcers tucked inside the broadcast booth could easily be offering commentary on an NFL matchup or a Vegas Golden Knights hockey game.

The cameras zoom in on the action and then pull back to reveal the contestants. Though they’re guzzling energy drinks and sweating under the intense competition, their battle armor isn’t shoulder pads and helmets but headsets, keyboards and lightning-fast gaming mouses. They are the athletes of esports, skilled millennials and teenagers who have turned their passion for playing video games into a profession. Most esports are team-based games; the best players earn millions of dollars competing in esports leagues, tournaments and lucrative sponsorship deals.

The global esports audience is expected to reach 380 million this year and pull in $1.4 billion in revenue by 2020, according to esports market research firm Newzoo. Brands such as Bud Light, Disney and the NFL are already heavily invested in the global esports market, whose enthusiasts are predominantly 35 and younger.

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It's a market that MGM Resorts International and international esports consortium Allied Esports plan to tap with their Esports Arena Las Vegas, a 33,000-square-foot gaming arena that opens March 22 at Luxor Hotel and Casino. The casino industry hopes esports will attract the 15- to 34-year-old millennial crowd, who are less interested in traditional gambling than previous generations.

"We’ve worked with MGM and Bellagio for 16 years with the World Poker Tour, so it was an easy conversation when we looked at where to place our Esports Arena," says Jud Hannigan, Allied Esports’ chief executive. "This is our marquee property, the Madison Square Garden of esports, and it fits in nicely with what MGM plans to do with Luxor. Can there be a better location for an esports arena than inside a pyramid?"

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Equipped with new and classic video arcade games, stadium seating, a 50-foot LED video wall and a state-of-the-art digital production and broadcast facility, Esports Arena Las Vegas combines "everything we know about esports entertainment, production and competition and applies it here," Hannigan says.

That includes a top-notch food and beverage program from well-regarded chef Jose Andres.

"Jose is a huge gamer," Hannigan says. "He knows that certain foods are better than others for a gaming environment. He knows greasy foods and keyboards don’t go well together. But he also knows foodies who are not gamers will come here just to eat his food." The kitchen will serve food until 4 a.m.

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Esports Arena Las Vegas, which will boast a massive LED wall, is expected to host at least...
Esports Arena Las Vegas, which will boast a massive LED wall, is expected to host at least 25 major events annually.(Esports Arena Las Vegas / Courtesy)

At the front of the venue, two virtual-reality stations allow players to jump into immersive experiences.

Guests enter the arena by passing through an arcade bar, a cocktail area outfitted with video game classics like Pac Man and Streetfighter. Inside the arena, theater-style stadium seating faces a two-story, high-def video wall that displays a first-person view of the gaming action and stats. Upstairs, team clubhouses, VIP rooms, private owners' boxes and a broadcast booth overlook a competition stage. Competitors will take the stage to a thumping soundtrack while the whole thing is broadcast on the video wall. "It'll be like Battle of the Network Stars, but with food from Jose Andres," Hannigan says.

In traditional pro sports, fans watch others play. In esports, though, anyone can pop right into the action as a competitor — and could easily find themselves sitting right next to some of the world’s elite esports players.

"Gamers are craving a social experience," Hannigan says. "They want to socialize with people who share that same passion and feel like they’re in the middle of the action. That’s what we’re after here."

Esports Arena Las Vegas will be the first dedicated esports facility on the Las Vegas Strip.
Esports Arena Las Vegas will be the first dedicated esports facility on the Las Vegas Strip.(Esports Arena Las Vegas / Courtesy)

Casual gamers can access the facility, play games and potentially compete in tournaments 24 hours a day. Hannigan says a different marquee game will be featured each day.

In addition to casual play and competitions, Esports Arena plans to host at least 25 major events a year based on games such as League of Legends and Dota 2. The facility can hold nearly 1,000 people.

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Though the arena doesn’t have immediate plans to offer esports betting, Nevada regulators approved rules for skill-based gaming in 2016.

Michael Hiller is a board member of the Society of American Travel Writers and the editor of EscapeHatchDallas.com. Follow him on Instagram at @mikehillerdallas.