GUEST COLUMN:

Five trends in gaming for 2018 and beyond

Mon, Jan 15, 2018 (2 a.m.)

Technology advancements have continually changed the landscape of the gaming industry and will continue an upward trajectory this year. Here are five trends to keep an eye on, with five more coming next week.

• The year of iGaming: Nevada is the only state in the nation with a full carve-out to federal legislation that allows wagering on single sports contests. But the competition is heating up as states look for ways to capitalize on the popularity of sports wagering. The U.S. Supreme Court heard oral arguments in December in a case that, if decided in New Jersey’s favor, would allow casinos and racetracks in the Garden State to offer sports bets. Twenty other hopeful states are backing New Jersey in the case. The court’s decision is expected to be made by June.

• Skill-based gambling: 2018 will usher in the next generation of games that require strategy and thought to play well. For example, the average video poker player can make up to 500 decisions an hour. New skill-based games that create collaboration between the standard play and additional layers of strategy shrink that number substantially. While casinos may lose profit volume in the short term, expanding a skill-based gaming repertoire earns them new customers who crave more control over their bets. Be on the lookout for new games that will change wagering and produce higher-stakes play.

• Casino consolidation: Station Casinos buys the Palms. Eldorado Resorts acquires Isle of Capri Casinos. And Penn National Gaming bids on Pinnacle Entertainment. The trend on the Strip has long been moving toward fewer companies owning more casinos. If 2017 was the year of mergers and acquisitions, 2018 may create opportunities for gaming investors to acquire the one property that doesn’t “fit” with the rest of the properties in a portfolio.

• More payment options: Bitcoin dominated headlines in 2017 as a new way to conduct business. And the gaming world benefits from that shift. E-wallets will continue to prove popular with online casinos — and in 2018, we can expect more online casinos to offer Bitcoin and Ethereum as accepted methods of payment. This currency revolution paves the way for casino developers to add more digital currencies while bringing new players into the market and keeping current customers cashing out … (or in).

• Virtual reality is the new reality: Sure, the headsets aren’t cheap, but developers are working to make VR mainstream. By 2020, industry leaders put the VR market at $100 billion-plus. VR gaming for casinos adds value by enhancing the player experience and making customers feel immersed in every wager. Regardless of what form the technology takes, VR is here to stay.

Ellen F. Whittemore is a shareholder and Mackenzie Warren is an associate with Brownstein Hyatt Farber Schreck.

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