By ALAN SNEL
LVSportsBiz.com
Allied Esports is running an impressive esports arena at the Luxor hotel-casino on the Strip and is on a mission is to connect esports players, streamers and fans with global arenas and mobile esports trucks. LVSportsBiz.com asked Allied Esports Chief Executive Jud Hannigan about his company’s future in Las Vegas and around the world.
LVSportsBiz: Allied Esports has planted a big flag in the ground in Las Vegas with its partnership with MGM Resorts International. Why Las Vegas and why this particular venue in the Luxor?
JH: The Allied Esports Property Network currently has 11 esports properties globally and we look at HyperX Esports Arena Las Vegas as not only our flagship but our championship destination. We harness the excitement and anticipation that Las Vegas inspires in people all over the world to drive interest in our global events throughout the network. From our first visit to the space at Luxor we knew we had found our eventual home on the Strip. We have a partner in MGM Resorts International that understands the impact that esports and video gaming is having on the entertainment industry and the layout of the venue at Luxor was perfect for our vision of creating the world’s premier esports arena and content production facility. Besides that, esports in a pyramid was always a concept we were hyped about.
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LVSB: The Luxor venue is impressive. How much did Allied Esports invest in the venue and when do you expect to turn a profit on the venue?
JH: No comment
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LVSB: What other projects do you have in mind for Las Vegas? Do you look at the Twin Galaxies Esports Center at the Caesars Entertainment Studio as a competitor?
JH: In addition to the daily video gaming and nightly tournaments at HyperX Esports Arena at Luxor, we are excited about creating events and content with other household names in Las Vegas like the awesome events we have been producing with the Vegas Golden Knights at the arena and live streaming to their Twitch channel. In addition, we are working on having the HyperX Esports Truck – our 18-wheel semi-truck that opens into a mobile esports arena and production unit – appear at events more regularly in Las Vegas. We recently showcased the truck on the CES floor, but are excited to roll it out to more events in town this year.
The main area where we differentiate ourselves from the market is that we have a growing network of arenas, mobile trucks and studios that are purpose-built for esports and that we program with events every day. We believe the true power in our offering is the sum of all of those parts working together to create an engaging offering for the esports and video gaming communities. That said, one thing we recognize is how important local market knowledge is in our venue operations and recently launched an affiliate program for like-minded groups around the world to join our property network. This not only allows us to support our partners in their endeavors but provides a home for our tournaments, events and content in new markets. Our first affiliate partner is a company called Fortress Esports, which expects to open its first arena this year in Melbourne, Australia.
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LVSB: Your HyperX Esports Arena at Luxor has hosted other events besides esports like the Alliance of American Football quarterback draft. What other possibilities outside of esports does that venue provide?
JH: We pride ourselves on HyperX Esports Arena at Luxor being one of the most respected content production facilities in esports and consider opportunities to host events outside of esports to be a great compliment. The ability to go from streaming the League of Legends All-Star event to broadcasting the AAF quarterback draft live on CBS Sports Network is proof of how versatile the space can be. With the audio, visual and broadcast capabilities of the arena the possibilities are endless. We’ve been able to host events like the World Karaoke Championships, record-release parties, live orchestra concerts and even TED Talk-style presentations.
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LVSB: We did a story on Allied Esports looking at using the Luxor venue as a possible blueprint for other venues in Europe and Asia — how are those projects coming and what’s the status of those venues? I saw a stat saying esports revenue is expected to exceed $1.65 billion in global revenue in 2021 — what would say are the top revenue streams for your esports arena in Luxor?
JH: The search is on for the right cities and locations in Europe and Asia for what we consider flagship arenas like HyperX Esports Arena. We’re evaluating several locations at the moment which we feel will excite gamers in those regions and best support our affiliate partners through events and content. The continued growth and expansion of our business at Allied Esports is a testament to the growth that we are seeing in esports. Significant revenue streams for our arena businesses include gaming and tournament entry fees, sponsorship and content production rentals.
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