Las Vegas welcomed nearly 25,000 people from the gaming industry around the world last week in what one Wall Street analyst described as the best Global Gaming Expo ever.
The educational conference and trade show of the American Gaming Association held at The Venetian Expo showcases the newest slot machines, games and technology and the latest in trends and ideas. There were more than 350 exhibitors with many Las Vegas-based companies among those represented.
There was plenty of industry news as Wall Street analysts met with management of the casino operators from Caesars Entertainment, MGM Resorts International, Wynn Resorts, Red Rock Resorts, Boyd Gaming, Golden Entertainment and others.
MGM CEO Bill Hornbuckle as a keynote speaker touted Las Vegas as continuing to show signs of strength going forward and downplayed suggestions by some analysts that the city has hit a peak when it comes to tourism and revenue.
Hornbuckle said while room bookings for F1 next month started soft, it’s starting to pick up, and that gaming revenue may exceed 2023.
“I think the town has learned a great deal,” Hornbuckle said. “There’s less noise and disruption out there in the media. We have a football game at the south end of the Strip and the town is doing a bunch to activate. It’s a whole different feeling going into it. Remind everyone, it was the second worst weekend of the year (historically).”
Las Vegas is still viewed as a place to escape with so many more options for tourists from the Raiders and other events at Allegiant Stadium, the Golden Knights and a future that includes the Las Vegas A’s at their new $1.5 billion baseball stadium on the former Tropicana Las Vegas, he added.
“The more we make that event-driven activity a principal reason for a visit, the better off we’re going to be,” Hornbuckle said.
AGA CEO Bill Miller sounded an optimistic note about the industry’s future overall and Las Vegas when he spoke how the average age in today’s casinos is 42 compared to 50 in 2019. That trend line for younger visitors to Las Vegas has been verified by the Las Vegas Convention and Visitors Authority in its annual survey.
“This is a huge shift in the industry and one that we need to keep driving to stay on a growth trajectory,” Miller said. “Millennials are the largest generation living today, along with younger GenZers. They’ll make up about four out of five workers, globally, in just five years. This rising demographic is crucial to our industry’s future.”
Analysts have talked about how COVID has been instrumental in bringing younger crowds into casinos because it was the only entertainment available when there were restrictions on other gatherings. Casinos provided an outlet and it helps that casino games mimic video game experiences, more so today.
Like Hornbuckle, Miller was also high on Las Vegas with its entertainment offerings for sports, including hosting the Super Bowl in February.
“Vegas has become a preferred destination for the world’s greatest sporting events from the Super Bowl to Formula One,” Miller said. “Vegas is in transformation. It echoes a broader integration of sports and games.”
There was plenty of buzz during the conference from an announcement made a few days prior to G2E that Wynn Resorts has obtained a gaming license for its $5.1 billion integrated resort in the United Arab Emirates in which it will have a 40 percent equity stake and management contract. The Al Marjan Island project will open in 2027 and opens the door for MGM to get a gaming license for its current non-gaming hotel project in the UAE. Caesars is now talking about a Middle East project as well in further exploring Las Vegas-style hospitality to the region.
Barry Jonas, an analyst with Truist Securities who called the show the “best G2E ever,” said he was impressed by the depth and breadth of offerings on display from multiple companies. Manufacturers, many based in Las Vegas, continue to prioritize spin-offs of already-popular franchises with popular game mechanics and more in-house developed brands.
“2024’s G2E show saw no let down in strong game and cabinet content across the industry,” Jonas said. “Operators we spoke with still saw Aristocrat on top, with Light & Wonder still making gains amidst a very diverse offering. Some operator concerns remain over impending mergers and acquisitions between IGT and Everi could create near-term opportunities for others.”
As for land-based gaming, it “keeps chugging along,” Jonas said. Their meetings with operators were consistent with commentary leading up to G2E. The Strip continues to combat the “peak” narrative, which is not helped by an upcoming F1 race that is well-known to be tracking behind year-over-year bookings.
“Operators did however have the belief that bookings would catch up to some degree,” Jonas said. “Some operators also noted that blended room rates are tracking more favorably than what online-focused room rate surveys show. Tough comps were cited instead of consumer issues, and the upcoming CES in January appears to be tracking very strongly.”
Among those attending the show was Las Vegas-based gaming industry consultant Brendan Bussmann, managing partner of B Global, said it’s good for the industry to get together in one of the gaming capital’s of the world.
“There was a lot of focus on where the industry is going and challenges the industry is facing as well as opportunities in Latin America and abroad,” Bussmann said. “But the conference shows that Vegas continues to be the mecca for gaming that it is. I had everybody from halfway around the world looking at the opportunities here and what the industry is going across the way.”
Las Vegas-based operators continue to look for opportunities abroad, and Bussmann said it shows the city is an exporter of its knowledge.
“Every market is different whether it be the UAE, Brazil or Thailand, which are the three flavors of the days, but how does an integrated resort in Las Vegas play there.” Bussmann said.
