Facing an aging slot-player demographic, Las Vegas initiated a strategic pivot toward Millennials through the integration of Skill-Based Gaming and eSports. The approach evolved from "gamified slots" to "destination eSports."

The Legislative Foundation

The legislative catalyst was Senate Bill 9 (2015), which authorized variable-payback percentages based on player ability, breaking the traditional RNG (Random Number Generator) monopoly.

The VGM Failure

Early attempts to deploy Video Game Gambling Machines (VGMs) by manufacturers like GameCo and Gamblit largely failed due to low revenue throughput compared to traditional slots and a steep learning curve for patrons.

Destination eSports

Consequently, the industry shifted strategy from "gamified slots" to Destination eSports. This is exemplified by the HyperX Esports Arena at the Luxor, which monetizes events and F&B rather than floor gaming.

eSports Wagering

Concurrently, the Nevada Gaming Control Board streamlined regulations to integrate eSports wagering into standard sportsbooks, moving the revenue focus from playing video games to betting on professional tournaments.