E-sports: Why it’s time to pay attention

"E-sports," a form of entertainment in which people bet on the outcome of video games — both online and in gaming halls — continues to expand despite a lack of regulatory uniformity across the states.

Speakers at yesterday's Amusement Expo International at the Las Vegas Convention Center, were quick to point out that e-sports have grown exponentially during the pandemic, with more mainstream entertainment facilities hosting e-sports worldwide.

The panel discussion focused on the role that midsize facilities are playing in popularizing e-sports. While large e-sport stadiums are emerging worldwide, the sport is largely growing on a grass roots level, with local competitions popularizing the sport.

"E-sports is growing fast; e-sports is massive," panelist Chris Laporte, president of Reset, a Las Vegas based entertainment technology consultant, said at the panel outset. "We have opportunities to really meld a strong focused attack on this niche community of gamers that we call e-sports fans."

Panelist Jan Goetgeluk, CEO of Virtuix, an Austin, Texas based manufacturer of an e-sports "omni arena" that uses virtual reality, noted that technology providers make it possible for companies and organizations to host e-sports without having to cover much overhead. Players' scores are uploaded to a nationally broadcasted leader scoreboard, the winners of which receive prize money.

Education needed

The speakers noted, however, that the organizations hosting e-sports need to market it successfully. E-sports is still new, and consumers need to be educated.

"To make e-sports work, it's actually a lot of work," Goetgeluk said. "The key is to build a community around what you do from the ground up. You have to consistently organize contests and competition."

"But you've got to build it up over time," he said.

It's important to realize, the panelists said, that the industry is still in its early stages.

"The majority of the players are still just casual players, but at least you have that dedicated base that do come every week to do just that," Goetgeluk said.

Entertainment centers' role

Panelist Russ Van Natta, vice president of sales at Creative Works, a Mooresville, Indiana based provider of immersive technology, said family entertainment centers can find the middle ground between the at-home e-sport audience and the large e-sport arenas.

Van Natta said local universities are a great partner for e-sports, as many of them are now providing e-sports activities.

"What that apparently does is it drives junior high schools and high schools to create complementary pieces as well," he said.

Van Natta suggested FECs model leagues after the bowling leagues created by bowling lanes.

He said 80% of an FEC's e-sport sales will be from organized leagues and the balance will be walk-ins.

A place to 'geek out'

E-sports need to be offered in dedicated spaces with furniture, he said, similar to a café.

"We want it where they can talk shop and 'geek out' so to speak with the folks that are working there; much more that niche exclusivity mind set," Van Natta said.

Laporte stressed the importance of tailoring the e-sports environment to the local community. The e-sports crowd has its local leaders who can serve as an e-sport location's ambassadors. The e-sport community is looking for authenticity.

"Work to build what they have already started to build," Laporte said.

Goetgeluk agreed, adding that one-time events do not generate much attention.

How to market

Van Natta said hosts need to put leader boards up on websites and have social media channels dedicated to e-sports.

One guest made a Tik Tok video of themselves playing in the e-sports arena that got millions of views which doubled the venue's revenue for six straight weeks, Goetgeluk said.

"If you have a competition in your venue, it should be streamed," LaPorte said.

The panelists agreed venues should use Amazon's Twitch, a video live streaming service that focuses on s-sports competitions and other video games.

"You have to show that you're more than just a venue that is doing a thing, that you have access to other people, other partners, streamers, what have you," La Porte said.

Goetgeluk said a customer survey found that 43% came to the venue specifically to play e-sports, a finding that he credits to the power of social media.

The panelists further agreed the millennials are bringing a "generational tsunami" to e-sports.

Asked what audience to target, LaPorte said go for the younger consumer.

Goetgeluk added that military audiences are also very receptive to e-sports.

As to how the facility should be laid out, Van Natta said there should be a main focal "six on six" area similar to a world poker tournament for the top seeded players, then "at large" player area, as well as a U-shaped lounge area with couches.

"You still have to have a good hand on the wheel of doing the heavy lifting of getting out and building that community out there," Van Natta said.