Video game gambling arrives in Atlantic City

Thousands of slot machines still await visitors to any Atlantic City casino, as they have for almost 40 years.

But at Tropicana and the three Caesars Entertainment casinos, a handful of new machines amid the slots are intended to lure those seeking a different gambling experience.

The words “VIDEO GAME GAMBLING” on the sides of the Danger Arena and Pharaoh’s Secret Temple games beckon patrons, and last week, the games – the first such skill-based games at any casinos in North America, game maker GameCo Inc. said – attracted some novices.

"Danger Arena is a first-person action game that appeals to a more 'core' gamer audience, similar to XBox games like Call of Duty," said GameCo founder Blaine Graboyes.  "Pharaoh's Secret Temple appeals to a more casual audience and is similar to mobile 'match 3' games such as Candy Crush."

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Danger Arena machines debuted in October, while the latter game was just installed at Tropicana last week. Both are now offered at each of the four casinos, with a total of 30 machines.

Part of the goal of the casinos is to get millennials – many of whom play video and social media games regularly but aren’t attracted to slot machines – to spend more time and money because of their enjoyment of the games. Atlantic City casinos are eager to find new profit sources because the city's combined casino revenue has fallen by more than 50 percent since Pennsylvania and New York opened their casinos near the New Jersey border in 2006. The number of casinos has declined to seven from 12 in 2014. The video games are an example of efforts by state regulators to consider a variety of gambling options to help boost Atlantic City casinos and raise more tax revenue.

Reaching millennials is not just a concern in Atlantic City. The Las Vegas Convention and Visitors Authority said the percentage of visitors there who gambled had declined to 71 percent in 2014 from 87 percent in 2006. The percentages of those who gamble by age group is telling. Seventy-eight percent of baby-boomer visitors to Las Vegas gamble, followed by 68 percent of Generation X and 63 percent of millennials.

Graboyes said video games have been around so long that even some people in their 40s and 50s are experienced players. (During several hours at Tropicana and Caesars, no senior citizens were observed even considering playing the video games.)

"We staff brand ambassadors at the games to answer questions and collect exit interviews, and from that we know that 60 percent of players so far have been under 40 years old," Graboyes said. Graboyes, who founded GameCo in 2015, said in September that the company had raised $8.3 million in venture capital to fund the launch at the Atlantic City casinos.

Peak activity, not surprisingly, has been nights and weekends. Half of the players interviewed said they would not have gambled if not for the video game machines, which Graboyes said bodes well for casino revenue. About 90 percent of the money gambled has gone back to the players, Graboyes added, which is similar to what casinos pay back on slot machines.

Atlantic City was chosen as the first location for the games, Graboyes said, to pay homage to his childhood visits to Atlantic City from Bucks County, Pa.

“This is the first time I’ve seen something like this, so I figured I’d give it a try – it looks kind of fun,” said Kayla Jones, 30, of New Haven, Conn., after a couple of rounds of Danger Arena. “Guys will definitely like this.”

Another millennial, Mike Wasyliszyn of Carteret, looked over the Danger Arena games but then walked away.

“I like to gamble, but I wouldn’t gamble over video games – it’s two totally separate things,” Wasyliszyn said. “I play Xbox and I like video games, but if I want to do that, I’ll just stay home. Here, I prefer games like blackjack or craps.”

Justin Miele, 38, of New Rochelle, New York, perused the games as well but said he declined because he is “not a big video gamer.”

“I have some friends who would be interested in this, though,” Miele said. “Thing is, I haven’t seen anyone actually playing it yet.”

Indeed, the games drew little notice at Tropicana at lunchtime on Feb. 17, a Friday, even with the Presidents Day holiday weekend ahead.

Carlyn Davis of Queens, though, did take a chance on Pharaoh’s Secret Temple.

“I’ve played this type of game on my [smart]phone,” Davis said. “I have younger relatives who play slots, but they would prefer to do this, I think.”

Yeong Kim, who was visiting from Fairfax, Virginia, said he didn’t much care for Pharaoh’s Secret Temple after a few tries at Caesars. (Bally’s and Harrah’s also offer the games).

“My wife likes it more – she says it’s like Candy Crush,” Kim said. “My kids would love it, though; they are 27 and 25. I’ll tell them about it.”

David Gargaro of Baltimore found that the Temple game reminded him of Bejeweled, another popular video game.

“But there’s too much skill involved,” Gargaro, 30, said with a laugh. “It’s more daunting when you’re gambling with real money, I suppose.”

Only Jason Mejzak, 42, of Williamstown, in Gloucester County, found his experience so unappealing that he has written off the games – for good.

“The screen doesn’t work, it’s too greasy,” Mejzak said.

Players can choose five price points from 50 cents to $20 with either game. With Danger Arena, players must wipe out seven 'bots in 45 seconds to break even – while knocking off 10 of the cartoon robots gets you 25 times your money.

There are 10,000 unique “maps,” or virtual locations, with Danger Arena – each with a different level of difficulty. That means that as with poker and blackjack, luck as well as skill plays a role because an easy board could lead to easy money, while even a very skilled player could be overmatched by one of the most difficult maps. The maximum payout in one game on Danger Arena is $5,500, if a player lucks into the maximum instant cash prize of $5,000, then bets $20 and knocks off 10 or more 'bots to win 25 times his or her bet.

Graboyes said he plans to roll out more new games – racing and martial arts fighting are among the other types – and in more locations over the course of the year. Some of the new sites will be other Atlantic City casinos.

How to play Danger Arena

• Players have 45 seconds to "shoot" as many 'bots as possible in this "first-person action game." 
• Vanquish six 'bots, and you get half your money back. Get seven, and you break even.
• A player makes money by shooting down eight 'bots (2.5 times your bet), nine 'bots (five times your bet), or 10+ 'bots (25 times your bet).
• The betting categories are $1, $2, $3, $7.50, $10 and $20. 
• The maximum winnings, therefore, is $500 for one game – except for occasional bonus prizes randomly offered of up to $5,000.