Hartford Business Journal

6 HARTFORDBUSINESS.COM | JULY 12, 2021 Deal Watch By Matt Pilon mpilon@hartfordbusiness.com T he overseer of the XL Center is hoping Connecticut's newly legalized sports betting law could spur a major investment that's been otherwise hard to secure for the aging arena in the heart of downtown Hartford. As the Connecticut Lottery Corp. vets bids from sports betting operators vying to run 12 brick-and- mortar sportsbooks across the state, the Capital Region Development Authority (CRDA) is hoping a chosen operator will end up running a sportsbook at the 16,000-seat XL Center arena. As CRDA awaits word, its executives are evaluating how competitive video gaming, or "esports," might play a role in revitalizing XL, whether or not sports betting becomes a reality. "We've programmed esports into our XL renovation plans," said CRDA Executive Director Michael Freimuth. "The industry is still defining itself." Esports, where players and teams battle it out virtually or in person in skill-based games such as Counter- Strike, Dota, and League of Legends, is expected to surpass $1 billion in revenue this year from the sale of sponsorships, media rights, event tickets, merchandise and other areas, according to esports analytics firm Newzoo. That figure is solely for professional and semi-pro esports activity, and doesn't include amateur esports revenue nor esports gambling revenue. Connecticut's newly legalized sports betting law does permit esports wagering, though it places some restrictions on betting on the growing number of varsity esports teams that have formed at Connecticut colleges in recent years. "Esports are on an upward trend, and with sports betting being new and growing, it does have some operational aspects that link very nicely," Freimuth said, including the IT backbone and infrastructure, food service, and some similar seating arrangements. "Developing them together could produce an economic opportunity." While CRDA has been thinking about esports for the past few years, it's now taking a fresh look. There are questions about how sports betting and esports might cross over, complement each other or simply coexist, as well as about how XL Center could be laid out to accommodate esports. "It may be logical to do it in the concourse area, but it could also be in the exhibition hall or elsewhere," he said. "We're looking at everything." Esports competitions are often held virtually, and COVID-19 has added uncertainty about how quickly in- person gaming events would rebound from their 2020 decline. However, online esports events also tend to be less lucrative for esports teams, according to Deloitte. No 'Field of Dreams' Jason Chung, an assistant professor at the University of New Haven and executive director of the school's one-year-old Esport Business Program, said he would be rooting for anything that expands Connecticut's esports XL Center, long known for live entertainment, could become home to an esports venue A rendering of what an esports theater could look like inside the XL Center, where a sportsbook could also be on tap. PHOTO | SCI ARCHITECTS/CRDA • Eastern is the top-ranked public regional university in New England (U.S. News and World Report, 2021) • Eastern graduates have the ethics, problem- solving and communication skills, and ability to work in teams that you need in your organization. • 41 majors — including Accounting, Data Science, Economics, Business Information Systems, Finance, Health Sciences and more. Eastern Grads . . . www.easternct.edu Job Ready! HBJ Ad 211.indd 1 HBJ Ad 211.indd 1 7/6/21 11:54 AM 7/6/21 11:54 AM market, but cautioned that XL would be up against plenty of challenges, including competition from other venues vying to secure regional or national esports competitions, including arenas in Las Vegas and Los Angeles. "This is not a 'Field of Dreams' situation. A lot of people are building a lot of stuff," Chung said. "It really

• Cover