G2E Underway In Las Vegas, M&A And Illegal Activity Draw Early Focus

The Global Gaming Expo (G2E) 2024 has kicked off in Las Vegas, and the Venetian is set to host thousands of international visitors eager to explore the cutting edge of the gaming industry. The four-day event — which kicked off Monday — offers a packed agenda of keynote speeches, educational sessions, and presentations from industry innovators.

The expo draws stakeholders from across the spectrum, from private equity investors and casino executives to emerging technology companies and gaming enthusiasts.

Mergers and acquisitions (M&A) have long played a critical role in the growth and transformation of the gaming industry. Edward King, co-founder and co-CIO of Acies, highlighted this enduring trend during the education session titled “Game On: The Resurgence of Global Gaming M&A” on Monday — the first day of G2E. King emphasized that while M&A has been central to the industry’s evolution, modern deals are becoming increasingly intricate and are subjected to heightened regulatory scrutiny.

Private equity has become particularly active in this space, King noted, pointing out that there were 17 special-purpose acquisition company transactions in the gaming sector over the past year. He also touched on the variability in regional demand, which has fluctuated in recent months, partly due to the rising burden of credit card debt on mid-level players.

Light & Wonder Chief Financial Officer-Americas Shannon Demus echoed King’s sentiments, acknowledging that inflation had affected certain segments of the market. “Consumers are definitely impacted by inflation rates over the past few years,” Demus said, though she clarified that the core demographic for many gaming sites remained resilient. Despite economic challenges, she emphasized that gaming companies are still seeing robust activity among their key players.

Ongoing concerns around money laundering

While M&A activity garnering plenty of attention on the opening day of G2E, it was hardly the only topic in the spotlight.

Regulators remain focused on addressing ongoing challenges within the gaming industry — most notably, money laundering. During a panel titled “Where Sports Betting Sits on the Regulatory Agenda,” Kirk Hendrick, chairman of the Nevada Gaming Control Board, raised concerns about illegal money-laundering activities within Nevada’s casinos.

Nevada may not face the same problems with illegal bookmakers as other states, but money laundering remains a persistent issue, Hendrick stated. He referred to a recent disciplinary complaint filed by the NGCB against Resorts World, accusing the company of facilitating illegal bookmakers with ties to organized crime.

High-profile cases of non-compliance have come to light in recent months. In 2023, Scott Sibella, former president of Resorts World Las Vegas, was sentenced to probation and fined after failing to report illegal gambling at MGM Grand. Similarly, Wynn Resorts recently agreed to a $130 million settlement with the U.S. government to resolve allegations involving unlicensed money-transmitting businesses.

Despite these challenges, Hendrick expressed optimism about the state’s regulatory framework. “Our illegal market has been minimized, because we have a legal market,” he said, adding that incidents involving illegal bookies from other states have been swiftly dealt with. He also pointed out that the rise of live-dealer gaming has introduced new regulatory complexities, but Nevada is taking steps to ensure compliance.

DraftKings and Circa take center stage

As the week progresses, two prominent figures in the gaming industry — Jason Robins, CEO of DraftKings, and Derek Stevens, CEO of Circa Las Vegas — are slated to headline G2E’s keynote speeches on Wednesday. These discussions, moderated by Emmy-winning sports reporter Rachel Nichols, promise to delve into the future of sports betting and casino gaming, both in Las Vegas and across the U.S.

The education program at G2E 2024 began with sessions exploring the future of casino gaming, AI, digital payments, and responsible gaming practices. The program, presented by the American Gaming Association and organized by RX, features more than 100 sessions covering various aspects of the gaming ecosystem, from tribal gaming to international developments.

Gaming innovation in the spotlight

The G2E expo floor is a showcase for innovation, with companies unveiling their latest advancements in gaming technology. A number of new arrivals to the industry will join their veteran counterparts in showing what lies ahead for regional and global markets.

Golden Matrix Group Inc. is using G2E to debut its new Atlas System, a next-generation platform designed to support both sports betting and iGaming. The company, which ranks among the top 5% of global gaming technology providers, will also highlight its partnerships with Meridianbet and Expanse Studios.

Inspired Entertainment, a supplier of B2B gaming content, is another company to watch at the event. Its Hybrid Dealer product line, which combines live dealer experiences with computer-generated imagery, aims to advance the gaming experience by eliminating the need for physical studios. This technology allows gaming operators to deliver scalable, high-quality live dealer experiences with efficiency, according to a company announcement.

Meanwhile, Vancouver-based Jackpot Digital is exhibiting its dealerless poker tables, which aim to reduce staffing needs and increase operational efficiency in casinos. The company’s latest product, the Jackpot Blitz electronic multiplayer poker table, promises to automate casino operations while maximizing profitability by dealing more hands per hour.

G2E will wrap up on Thursday.