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Casinos: The New Gold Rush For Developers?
Darion LowensteinChief Marketing Officer
Gamblit Gaming
Why this dude?• Currently Chief Marketing Officer at Gamblit Gaming,
Publisher of casual and arcade style real money games for mobile & land based
• Supernerd, graduated high school at 14 (#foreveralone)• Over 20 years in the game industry (scars to prove it)• Internal & External Producer/Director at Rockstar Games,
Scopely, Electronic Arts, and Activision• 10 #1 mobile games, 14 top 5 console games including
Tribes, Army Men, Red Dead Revolver, Midnight Club, Table Tennis, Transformers: War for Cybertron, and on mobile Simpsons Tapped Out, NBA Jam, & Mini Golf Match Up
• Once played Mario Kart till 6am to get a gold on Rainbow Road 150CC
“NOM NOM NOM”
THE GAMING INDUSTRY IS SUBSTANTIAL
N. America
$93billion
Europe
$49
billion
Rest of World
$16billion
Asia
$70billion
LatAm
$6billion
Real Money Gaming Industry (Land-based and Online)
The Real Money Gaming Industry is a ~$235 billion market
N. Americ
a
$28
billion
Europe
$37billion
Rest of World
$3billion
Asia
$43billion
LatAm
$4billion
Lottery Industry
N. America
$1.5billion
Europe
$0.6
billion
Rest of World
$0.2billion
Asia
$0.6billion
LatAm
$0.1billion
2013 Social Casino Industry
N. America
$122.5billion
Europe
$86.6
billion
Rest of World
$19.2
billion
Asia
$113.6billion
LatAm
$10.1
billion
Real Money, Lottery and Social Casino Gaming Industry
The Lottery Industry is a ~$115 billion market (net win for lotteries)
The Virtual Currency casino industry is a ~$3 billion market
The combined industry is a ~$353 billion market
Source: H2 Global Gaming Summary (excludes sports betting and online poker)
Source: H2 Global Gaming Summary
Source: SuperData Social Casino Metrics
Note: Daily fantasy sports and online poker are not included
THERE IS NO INNOVATION TODAY
1 2 3A B CX Y Z
Slot machine innovation has been
limited to cabinet and graphics only, but the
fundamental game play is still the same–
bet and watch.
THE DEMOGRAPHIC IS CHANGINGTraditional Mainstream Casino Player…
Primary market is 50-65 Skews female Grew up with typewriters Learned computer skills as an adult Experienced slots though physical
reel games
The New Market of Casino Visitors… Grew up in the digital age Mobile device centric Plays some genre of computer/mobile/console
games Demands high-fidelity multimedia experiences Highly tech-literate
Age 21-35 Age 36-49 Age 50 -64 Age 65 & Over
39%34% 36%
28%
Casino Visitation (% of each age group)
Source: 2013 State of the States AGA Survey of Casino Entertainment
21-34 35-44 45-54 55+
Slot Machine Play by Age Group
0 6 12 18 24 30 36 42 48 54 60 66 72 78 84 90 96 –
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000 U.S. Population Estimates
Source: U.S. Census Bureau as of July 2013 Source: Segmenting slot machine players: a factor-cluster analysis
Casino Visitors Age 21+ Who Play Slots (“Classic Casino Population”)
U.S. Casino Visitor Population Growth vs. Classic Casino Population
Decline
Casino visitors age 21-49 that do not play slots
(“Next Gen Gamers”)
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
–
5
10
15
20
(80%)(70%)(60%)(50%)(40%)(30%)(20%)(10%) –
Classic Casino PopulationCumulative % Change
MMs o
f Peo
ple
Cum
ulat
ive
% C
hang
e
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
– 10 20 30 40 50 60 70 80
– 10% 20% 30% 40% 50% 60% 70%
Next Gen Gamers Cumulative % Change
MMs o
f Peo
ple
Cum
ulat
ive
% ch
ange
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
– 10 20 30 40 50 60 70 80
Classic Casino Population Next Gen Gamers
MMs o
f Peo
ple
Millennial and Gen-X 40 Casino Visitors That Do Not Play Slots (“Next Gen Gamers”) Are Supplanting the Classic Casino Population
Next Gen Gamers Must Be Engaged In Order To Sustain the Existing Market … And They Represent a Tremendous Opportunity
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
– $10 $20 $30 $40 $50 $60 $70 $80 $90
$100
Classic Casino Population Engaged Next Gen Gamers Residual Next Gen Gamers
Annu
al U
.S. R
even
ue ($
B)
Annual United States Revenue Forecast vs. Classic Casino Decline Annual United States Revenue (assuming full monetization of Next Gen Population)
– $5
$10 $15 $20 $25 $30 $35 $40
-5%0%5%10%15%20%25%30%35%
Classic Casino Population Engaged Next Gen GamersCumulative Next Gen Engagement Required
Annu
al U
.S. R
even
ue ($
B)
% N
ext G
en E
ngag
emen
t
THIS SHIFT PUTS THE CLASSIC CASINO MARKET AT RISK
• Of 21-35 year olds in the USA, 35% visit casinos. However, the wagering rate of that group is only 2%.• Barcades with classic arcade games are popular with 21-45 year olds• Arcade chains like Dave & Busters that combine games & booze are growing
MO MONEY MO PROBLEMS
In summary - Globally, land based casinos are a $159 billion business (VS Mobile Games: $22 billion)• Nevada alone sees 42 million visitors to casinos per year• Slot machine revenue is down 12.5% from 2007-2015• Casinos are desperate for new content and revenue streams• Your customer is already on the floor – UA is already done!
CLEARLY, THERE’S A BIG A$$ MARKET
• Unproven market – what types of skill games will make it?• What companies attempting skill games will make it?• And will the slot companies come around?• Licenses per territory can cost $100,000-$1mm+
BUT WHAT ABOUT... PITFALLS?
• SLOW. 24 hour server side updates? Try 4 months• Regulatory reviews = the suck• Regulated hardware can be limiting• IP that’s too “kiddie” can be outright rejected• EVERY jurisdiction is different – per country, per state, and each
requires individual game reviews• With Skill Gaming, can’t a pro just sit and #MakeItRain?!?
BUT WHAT ABOUT... CONTENT?
SO WHAT ARE YOU DOING ABOUT IT?
Obligatory stock photo usage
G-Sports™• An e-Sports experience on
the casino floor• New, hit PC & console
games• Timed tournaments with
cash entry• Based on Gamblit’s
TriStationTM
TriStation™• Up to 3 players seated• Multiple game possibilities• Single player or networked game capabilities for
tournaments• Appeals to players desiring longer time-on-device and
involved game play
Model G™• Up to 4 players in bar or lounge heights• Multiple game possibilities• Multiplayer games available for either cooperative
or competitive play• Appeals to social millennial and Gen X casual
gamers
WHAT’S GONNA WORK? OUR SHOTGUN LINE-UP
Gamblit VRC™• Immersive VR experience• Side betting for observers• Will first launch with the
Brookhaven Experiment™ and HTC Vive™ technology
Gamblit Poker™
• Up to 6 players compete against each other on a felt table
• House-banked side bets & live buzzer provide additional excitement & profitability
The Brookhaven Experiment is a trademark of Phosphor Games, LLC. HTC Vive is a trademark of HTC Corporation.
PARTNER CONTENT > PURE LICENSED CONTENT?
35M+
Downloads
Since2012
5M+
Downloads
Since2015
350M+
Downloads
50M+
views on
YouTube
© 2014-2016 Gamblit Gaming, LLC. All Rights Reserved. Gamblit and the “G” face are trademarks of Gamblit Gaming, LLC in the United States and/or other countries. Catapult King is a registered trademark of Wicked Witch Software Pty Ltd. Breakneck, Into the Dead, and PikPok are registered trademarks of Prodigy Design Limited. Jetpack Joyride and Halfbrick are registered trademarks of Halfbrick Studios Pty Ltd. The Brookhaven Experiment and Phosphor Games Studio are trademarks of Phosphor Games, LLC.
60M+
Downloads
• Known Games = Greater then brand slap• Primarily UI overhaul, core gameplay
largely unchanged• Skill payouts on challenges, level goals, etc.
WHAT’S ALL THIS I HEAR ABOUT ESPORTS NOW, SONNY?
G-SPORTS CASE EXAMPLE ROAD REDEMPTION™
• An e-Sports experience on the casino floor
• New, hit PC & console games• Timed tournaments with cash entry• Easy ramp up process for
publishers/developers with hit games• Timing/Cost set by Casino
G-Sports is a trademark of Gamblit Gaming, LLC in the United States and/or other countries. Road Redemption is a trademark of Paul Fisch in the United States and/or other countries.
IF IT WORKS IN AN ARCADE…
YES! NO!Arcade gameplay!Fast & Easy to learn!Long to master!CONTROLS-SO-SIMPLE!
Complicated!Saving progress!Difficult to learn!LONG tutorials needed!SO MANY BUTTONS
INTO THE DEAD™ CASE EXAMPLE
Original Mobile Version
Gamblit Gamblified TriStation™ Version
Gamblit, the “G” face, TriStation, and the GBIT Skill Reward Points Box are trademarks of Gamblit Gaming, LLC in the United States and/or other countries. Into the Dead, PikPok are registered trademarks of Prodigy Design Limited.
+IN A PERFECT WORLD
