Dan Murphy’s owner pours $3m into e-sports mega-venue

Australia’s biggest drinks retailer Endeavour Group is investing $3 million into Sydney’s newest e-sports, gaming centre as the $12 billion giant covets Millennial and Gen Z customers who are socialising in venues outside traditional pubs and bistros.

The drinks and hospitality business that owns Dan Murphy’s, BWS and a range of pubs and hotels, purchased a minority stake of under 5 per cent in games company Fortress, which is set to unveil its new Chippendale venue to the public on Saturday. Its Melbourne venue opened in March 2020, six days before the pandemic shut its doors.

Fortress Sydney is based inside Central Park Mall and spans nearly 3000 square metres with a state-of-the-art e-sports arena for gaming tournaments, video game booths, arcade games, VIP console suites, board game areas, and a Telstra lounge featuring top-range Alienware PC equipment. Like the Melbourne flagship, it is also a licensed venue and contains a fantasy-style medieval tavern.

Endeavour-owned Australian Leisure and Hospitality Group (ALH) interim managing director Paul Walton said the investment in Fortress fits with the company’s strategy to create “pub experiences locals love”.

“I think Fortress is about creating, for us, the hospitality venue of the future,” said Walton, who said many people in the 18-40 year old age bracket enjoyed social games to some capacity.

“They socialise digitally at home at the moment through gaming, but they also socialise in our hotels, and hospitality. This is really a chance for us to invest in a company that’s bringing those two experiences together.”

More than 17 million Australians play video games, with the average age of a typical gamer being 34 years old. Revenue in the e-sports market is tipped to hit $26.5 million this year and is growing at nearly 8 per cent a year, making gaming one of the fastest-growing sectors of the entertainment industry.

Fortress Australia, which does not have any gambling component, is led by Melbourne tech entrepreneurs Jon Satterley, a former executive at theme park company Village Roadshow, and Adrian Giles, former chairman of ORDER Esports.