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ment officials, the Oregon Lottery deter-

mined the ticket should be honored and the

prize paid. TheLotter, which had provided

the service that allowed the man to buy the

winning ticket, now sees a golden oppor-

tunity to expand its business. The Oregon

Lottery Commission is expected to vote on

the rule changes in August.

Nevada Casinos Make Changes

to Attract Millennials

Manufactures nowadays are moving to a

more video game experience. It’s moving

to skill-based, it’s moving to to the Xbox

or the PlayStation, arcade games, pool,

beer pong, pool and shuffleboard to sports

book, and even a mini showroom with

UFC fights. Poker is still popular with the

younger generation. A mixture of a casino,

game room, and lounge, is being added as

they try to appeal to the nightclub crowd,

outside of a club.

Connecticut Casino Embraces

OnLine Gaming

With a crowded casino market in New

England competing for consumers’ gam-

bling dollars, Foxwoods Casino in Con-

necticut has entered the arena of on-line

gaming with its launch in April of Fox-

woodONLINE. The early returns on this

digital platform are encouraging, according

to Eric Pearson, vice president of gaming

and revenue enhancement.

Pearson said daily average usage (a key per-

formance metric) has doubled Foxwoods’

previous online initiatives. In-app purchases

and other digital avenues have created new

revenues, but the key driver is allowing on-

line players to win points or credits that can

be redeemed at the brick-and-mortar casino

for food, shopping, and hotel stays.

Online gambling for money is legal in

three states—New Jersey, Delaware and

Nevada—but casino operators are experi-

menting with gaming offerings to learn

what works and to begin to acquire brand

loyalty in the belief that additional states

will legalize it. In 2015, California, Illinois,

Massachusetts, and Pennsylvania intro-

duced online gaming legislation. Connecti-

cut considered a bill to legalize and regulate

online daily fantasy sports, but the measure

was defeated.

Online gambling around the world is pro-

jected by some research agencies to be a $56

billion a year market by 2018; the United

States is expected to represent one-third of

that total.

Gaming Industry can Show the Way

in Livestreaming

As businesses enter the rapidly evolv-

ing arena of live streaming, they may be

well-served to study the lead of the gaming

industry. Facebook, Twitter, and Google

collectively are expected to garner 44% of

all display advertising revenue in 2016 while

other media companies struggle to identify

profitable new revenue models. Meanwhile,

game publishers make billions using novel

livestreaming approaches.

Twitch, which is owned by Amazon, and

YouTube were live streaming pioneers, but

media channels such as Facebook, Snapchat,

Twitter, and other platforms are undertaking

initiatives to create more live video for their

sites. Facebook, for example, is spending

more than $50 million to encourage media

companies and celebrities to live stream on

its platform.

The live stream gaming industry offers valu-

able lessons for those hoping to build their

own brands on social platforms. Among

those lessons:

It Takes Three Years to Build A Following:

A recent analysis of more than 4,000 streams

on Twitch across 11 popular game channels

demonstrated that building an audience

might take at least three years before signifi-

cant returns are generated. More than 75%

of statistical outlier channels were created

during or prior to 2013. The gaming chan-

nels that fell in the lower 95th percentile of

total followers were predominantly created

since 2014. Organizations should be patient

with their live streaming programs.

Followers Lead to Compounding Returns

On Views:

As a Twitch streamer builds an audience,

there is a corresponding compounding

growth on the number of views the chan-

nel receives. A 10% increase in followers

correlates with the same 10% growth in total

views. The faster a channel attracts followers,

the faster it increases its views on Twitch.

This may be attributable to platform-specific

algorithms, which raise the most popular

channels to the top, but those same choices

probably would happen on any platform.

Tech Companies Invade Hollywood

Paramount. Warner. Universal. Three legacy

names synonymous with Hollywood.

Apple. Facebook. Google. Three global tech

giants that may become the dominant new

names in entertainment.

In recent months, Apple and three of the

company’s principal competitors—Google,

Facebook, and Alibaba—have increased

their investments in Hollywood content.

Google’s YouTube has launched a new

“originals” division that is combining its

homegrown talent with mainstream TV

producers and filmmakers to upgrade its

content. Facebook is encouraging—and

compensating—celebrities to live-stream

video on its platform. Alibaba, the Chinese

e-commerce company, is licensing, financ-

ing, and developing feature films.

These enterprises have embraced Holly-

wood for two reasons. 1) The success that

Netflix and Amazon have experienced by

producing exclusive, high-quality program-

ming is undeniable. Netflix has become

a $40 billion business, has attracted 75

million subscribers, and has won Golden

Globes and Emmy awards. Amazon’s move

into original video has helped Amazon

Prime add tens of millions of customers

and win awards of its own. 2) Entertain-

ment content is a growing opportunity.

The dissolution of the cable TV bundle has

fueled a battle to win audiences now free

from their old provider contracts.

Alibaba, Apple, Facebook, and Google are

aggressively pursuing this new business