The Global Gaming Expo (G2E) returned to Las Vegas last week, reflecting an optimistic outlook for the future of igaming. Despite potential challenges from the US economy and a possible strike by the Culinary Union in Las Vegas, attendees remained positive about the industry's prospects. G2E welcomed over 25,000 participants across four days, nearly matching the 2019 record of 27,000. This increase in attendance follows a 2020 event that was canceled and a 2021 edition that attracted merely 13,000 delegates.
The presence of international visitors and exhibitors contributed significantly to attendance, with representatives from more than 125 countries. The event featured 368 exhibitors, an increase from 350 last year, including 128 new companies. Attendees had the opportunity to engage in over 100 educational sessions on topics such as cybersecurity, cashless gaming, tribal gaming, sports betting, and igaming.
Oliver Lovat, CEO of the Denstone Group, noted, "I think this is the first time in years it was back to being a global gaming conference again," emphasizing a shift from a primarily North American focus to a more international representation. Victor Rocha, conference chairman of the Indian Gaming Association, described the atmosphere as invigorating and indicative of a post-pandemic renewal, saying, "It felt like the first true post-pandemic show for G2E, it was alive and exciting and everyone was there to do business."
The American Gaming Association introduced an igaming zone at G2E for the first time, underscoring igaming's growing importance within the US casino industry. Rocha highlighted the vibrant energy surrounding Las Vegas, linked to recent developments such as the U2 concert opening and ongoing construction projects related to the upcoming Las Vegas F1 Grand Prix.
Despite the positive energy at G2E, concerns loomed beneath the surface. Members of the Culinary Union protested in front of Strip casinos after voting to authorize a strike involving approximately 38,000 non-gaming employees at properties owned by Wynn Resorts, Caesars Entertainment, and MGM Resorts International. This potential citywide strike would mark the first of its kind since 1984. MGM CEO Bill Hornbuckle expressed confidence in reaching a deal to avoid disruptions to both the F1 race and the upcoming Super Bowl in February.
Brendan Bussmann, managing partner of B Global Advisors, acknowledged the industry's resilience since the pandemic. He stated, "If you would have told me we are where we’re at in 2023 compared to when we didn’t have G2E in 2020… I would have been shocked." However, he also noted the underlying economic and geopolitical concerns affecting the industry’s outlook.
The casino sector is currently grappling with the aftermath of cyberattacks that have cost MGM around $100 million, described by Hornbuckle as "corporate terrorism at its finest." This follows a prior breach at Caesars, raising ongoing concerns about potential future attacks.
This year's G2E placed significant emphasis on igaming, a burgeoning sector. G2E executive vice-president Korbi Carrison stated, "Igaming is one of the industry’s most prominent growth sectors both in the US and abroad," further emphasizing the importance of showcasing innovation within this vertical. Only six states currently offer igaming, with Rhode Island expected to follow suit, while Nevada only permits online poker.
Industry officials like Steve Cvetkoski, vice-president of product for Galaxy Gaming, reported a high level of interest in new games and products, observing that the energy and enthusiasm at G2E was noticeable. He suggested that igaming's focus would expand in future events, anticipating it as a significant growth area in the industry.
Asian companies returned to G2E, primarily focusing on peripheral gaming products and exploring opportunities within the US market. C3 Gaming principal Lawrence Shen reported a steady rise in technology companies at G2E, ranging from payment technology to anti-fraud services, as casinos increasingly seek such innovations.
Recent cyberattacks have elevated cybersecurity concerns, prompting operators to seek advanced technology solutions. Carcamo pointed out a growing interest in digital marketing tools, highlighting the convergence of igaming, sports betting, and traditional gaming.
While discussions regarding igaming's future were prominent, there remains caution regarding its expansion in the US, particularly from state lawmakers. Goldman Sachs vice-president Raf Mercado argued that digital offerings will complement existing gaming without cannibalizing revenue. Governance concerns may slow the growth of igaming even as it presents substantial growth opportunities for the industry.
Bill Miller, president and CEO of the American Gaming Association, expressed a positive perspective for the gaming industry, despite facing economic headwinds. He highlighted that 49% of Americans participated in some form of real-money gaming in 2022, reinforcing the industry’s popularity. With 12 new brick-and-mortar casinos opening since G2E 2022, the total number in the US has surpassed 1,000 for the first time.
Miller also remarked on the global expansion of the gaming industry, mentioning upcoming developments in Japan, Korea, and Brazil, as well as MGM’s plans in the UAE. He emphasized the successful blueprint of the American gaming industry, which combines innovative entertainment and gaming experiences. "It’s the concept that turned 110 acres of desert into one of the top tourist destinations in the world," he stated, illustrating the global appeal of the integrated resort model.
