Unikrn CEO says “ton of innovation in the gambling space, but not enough new thinking”

Rahul Sood is the CEO and Co-Founder of Unikrn, a Seattle, WA based gaming and eSports company.

Previous to Unikrn, Sood joined Microsoft in January of 2011. He created the Bing Fund, Microsoft's first ever incubation fund for startups, and eventually Microsoft consolidated their global startup activities under Sood’s leadership. In June of 2013, he launched Microsoft Ventures.

A serial entrepreneur, Sood spent 18 years in multiple startups prior to joining Microsoft. He founded luxury and gaming computer manufacturer VoodooPC, which was acquired by Hewlett-Packard. Voodoo brought the ENVY and OMEN product lines to HP, contributing advanced technologies such as commercial liquid cooling and an increased focus on design.

Sood is a Co-Founder of BrightSquid Medical, BrightSquid Dental,and BullsOnWallstreet. Sood sits on the board of advisors for Razer, and he recently joined the Board of Advisors for BitGold. He is active in the entrepreneurial community, helping and mentoring a variety of startups.

Tell us, Rahul, why are gamers poised to be the next big thing for casinos?

I think the better way to look at this is why are gamers as an audience important to casinos? The answer is simple; pretty much everyone in this day and age has grown up playing video games starting at a very early age. They continue to play games throughout their lives, and they are embedded in this culture where they love instant gratification, competition, and recognition. Casinos are mecca’s for entertainment, unfortunately the type of entertainment they offer today with regards to gambling just doesn’t interest this audience.

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It doesn’t matter how hard they try, curved screens and Britney Spears won’t get millennials to spend time on the slot machines

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How can casino operators monetize their interests?

I think it has to start with a completely different mindset. It’s not about replacing slot machines with video games, it should be about attracting this audience to their properties and keeping them on property for as long as possible. Casino’s need to create authentic and long lasting experiences that resonate with this audience. I believe Unikrn is well positioned to help make this happen.

Do you think casino operators are somehow underestimating the potential for gamers to engage in gambling?

100%. If I got a nickel for every time someone said “millennials don’t like to gamble” I could probably retire.

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I simply don’t think they fully understand this audience and how to attract, retain, and monetize them in the most effective way

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There isn’t a single silver bullet solution, but there are certainly a set of experiences that if executed properly would be amazing.

At a recent G2E panel disccusion, NGCB Chairman A.G. Burnett said 2017 will be the year for e-sports. In your opinion, what does the future have in store for eSports? When will it become a statewide reality? What about eSports in Latin America? Are you considering the possibility to expand into this fastest-growing region?

I’ve worked in the tech industry for my entire career. When I was at Microsoft we started Microsoft Ventures in order to help Microsoft’s largest customers (many of whom sit in aging industries) execute more meaningful innovation faster. When I started Unikrn we did some deep research in the gambling industry. The gambling industry needs new thinking -- there is a ton of innovation in the space, but not enough new thinking.

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The fact that A.G. Burnett is so forward thinking on esports is refreshing

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He is the kind of person we need to help influence and evolve the gambling business - to get people comfortable with change. There are now just enough people in Las Vegas who are helping to pave the way for esports, it’s an exciting time. I believe eSport experiences powered by Unikrn will be in Las Vegas over the next year or so.

In terms of esports in Latin America, it’s already incredibly popular there. Betting, on the other hand, is more challenging. Unikrn only operates within the law and we actively work with local regulators to operate responsible, safe, and legal betting products.

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With that said, I’d love to find a local partner to help build Unikrn Latin America’s business

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The UNLV and IGI are launching the first-ever lab focused exclusively on eSports and its integration with gaming, and are actively seeking industry support. Are you aware of this? Have you got the chance to speak with them?

Totally aware of it. I love what Robert Rippee and his team are doing at UNLV. UNLV has direct connections to the casino industry, and they make a perfect platform to help the casino’s innovate and improve their business.

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I think all casino’s should be engaged with UNLV if they aren’t already - it’s basically a think tank full of really smart people who live and breath the gambling space

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Seth Schorr, chairman of Downtown Grand, recently stated that 'the current slot product simply does not appeal (to gamers)”. And that can also be applied to Millennials. What are the key points the industry is missing in its attempt to adapt to a new demographic reality?

I’ve done extensive research in this area, I can boil it down very quickly to the following;

Gamers don’t like to play a game of chance where they know the % of them winning is very low.

For whatever reason they do not find slot machines fun or intuitive. I think that’s the most telling part, the lack of intuitiveness for young people is a deal breaker.

Doesn’t matter how you retheme the machines, curved screens or Britney Spears cannot change this trend. Slots have their place in the casino, no doubt, but they should not take up as much floor space as they do today.

It seems like a sector of the gambling industry in the U.S., interactive, has moved at a much slower pace than Europe. Why is it taking so long for U.S. to fully legalize and regulate all forms of gambling?

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Let’s face it, there’s a ton of lobbying that happens in the U.S, some of which is designed to protect consumers, but some of which is also designed to protect industries

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I think it’s crazy that sports betting isn’t legal in the U.S., yet the U.S. is among the largest markets in the world for illegal sports betting. Talk about a revenue drain! The worst part is all these grey market operators continue to operate with little or no recourse.

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In the meantime we have Fantasy which is effectively a Frankenstein product created from all the lobbying and protectionism

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I have a love hate relationship with Fantasy. I love that they exist and opened the industry's eyes to how great sports betting can be, but I don’t like the fact that Fantasy operates in a loophole.So much more could be given back to the sports industry if only we would finally legalize it across the United States.

I don’t care what anyone says, Fantasy is gambling, and it doesn’t help the industry with regards to competitive integrity, anti-cheating, etc

So why is Europe so far ahead? Because of competition, open markets, and strong regulation. At the same time there is still a ton of grey market activity happening across Europe that makes it hard for good operators to compete.

What are Unikrn's plans for the future?

Unikrn is a tech company first and foremost, we created the most comprehensive and feature rich sportsbook for esports in the world. We continue to develop truly authentic skill based and spectator based esports experiences to our customers. Together with our partner Tabcorp we are committed to bringing legal, safe, and fun esport betting experiences in the world. We are also actively looking for partners to help us build our business globally in markets where we aren’t present.

I am also determined to bring the ultimate esport experiences powered by Unikrn to the Las Vegas Strip in the near future. Stay tuned for that.