FANTINI’S FINANCE: Looking Back at G2E

Just like that, another G2E has come and gone, and as always, there were a multitude of takeaways and observations to be gleaned from one of the industry’s most important weeks. Here are just a few that piqued our interest.

FANTINI’S FINANCE: Looking Back at G2E

Attendance numbers for this year’s G2E exceeded 25,000, and this was supported by both observation and anecdote. This year’s G2E was busy and energized, which suggests that the American casino industry is also busy and energized.

Here are a few casual observations about the show and Las Vegas from the week that carry no more weight than just being one person’s observations:

  • The Las Vegas Strip appears to be crowded and energized, too. Walking along the main parts of the Strip is a test of patience for anyone trying to get through the crowds of tourists, an aggravation for some but a delight for corporate coffers, no doubt.
  • The Sphere is an artistic success with high-tech motion, visual and sound experiences. The question now is whether it can recover its high development cost.
  • The blankety-blank F1 and a warning to resort operators—next month’s Formula 1 race might be the experiential version of the Sphere. Expensive but maybe not as profitable as hoped.

It’s hard to find a kind word for the race among Las Vegans, especially Strip employees, who are worried about getting to work and navigating their way through the tourist district.

That in itself might be just a temporary inconvenience but the aggravation is extending to visitors who are irked by the traffic delays, as streets are already blocked while infrastructure is torn up in preparation for the event. An example was the case of Treasure Island guests who were without water for five scheduled hours and many who were without hot water for longer as the property prepares for the race. We’re sure that’s just one example and other properties are inconveniencing customers to make ready for the race. All of this is sort of telling paying customers that they’re not as important as the people who will be coming next month, so just give us your hard-earned money and put up with it.

Other cities host F1 without such disruption, but they might not be as aggressively trying to generate money from the event. Combine the ill will caused by the disruptions with reports that some venues are having to scale back sky-high prices for race events, and it’s looking like the race might not be an unalloyed success.

In a way, the complaints may typify a larger issue for Las Vegas—a greedy grab for money that could be counter-productive over time as America’s once-bargain vacation and convention town becomes the home of $20 sandwiches, parking fees and a disregard for that euphemism—the customer experience.

  • It’s all blending together. If there was a theme at G2E this year it was that games are blending together. It’s no longer just live table games and electronic tables. They are merging together. The same is true of online and land-based gaming.

A player can now sit down at a table game with a live dealer and place bets and keep track of winnings and losses and get credit for playing on an electronic display, as has been happening on slot machines for years.

Electronic table specialist Interblock is especially advancing this phenomenon but the other major manufacturers and even some of the smaller ones are participating in this melding that promises to give casino operators lower costs while attracting a wider array of customers.

  • It’s crowded in here. The Big Three—Aristocrat, IGT and Light & Wonder—drew big crowds to their very large and product-crowded displays.

Among smaller companies, Everi came close to matching them in size and diversity of products shown, which was consistent with its promise that it would display its greatest number of products ever. The considerably smaller AGS booth was packed each day, perhaps indicating customer interest that bodes well for the future.