## AGS Head Honcho Looks Back on Two Decades of Gaming Transformation
David Lopez, the top executive at American Gaming Systems (AGS), recently spoke with *Global Gaming Business Magazine* about his two decades in the gaming sector and his outlook for the company’s future.
**Looking back at your professional path, can you tell us about your experience in the gaming world?**
My path began in 1998 at Shuffle Master, where I quickly developed a passion for the industry, the organization, and its ethos. I spent almost 15 years there, holding various roles such as Temporary CEO, Chief Operating Officer, President of the Americas, Senior Vice President of Product Development, and Board Member. It was a transformative period that shaped my career trajectory and knowledge base. When I joined, we were bringing in approximately $27 million each year. By the time I departed in 2012, we were nearing $2.6 billion. Being a part of such incredible expansion was phenomenal. Following Shuffle Master, I joined Global Cash Access (now Everi) as CEO and subsequently joined AGS as President and CEO in early 2014.
**How has the sector changed over time?**
The metamorphosis over the past 20 years has been extraordinary. When I started, the Indian Gaming Regulatory Act (IGRA) was relatively recent, and tribal gaming was just beginning. Since then, we’ve seen enormous growth in both tribal and commercial gaming. Today, nearly every state in the U.S. has some type of legalized gaming.
The world of gaming has experienced a monumental transformation. In my early days, IGT reigned supreme, holding a dominant position in the market. Entities like Aristocrat and Konami were just beginning to appear. Today, after years of expansion and mergers, the competitive landscape has dramatically shifted. Smaller contenders such as AGS, Ainsworth, and Incredible Technologies have forcefully entered the scene, capturing a much larger portion of the market than anyone could have foreseen ten years ago.
The games themselves have also undergone a remarkable evolution. The early 21st century witnessed the emergence of “Australian-style” games, exposing players to an entirely new degree of unpredictability. Technological advancements have played a pivotal role, ushering in breathtaking visuals, captivating audio, and engaging bonus elements that were previously inconceivable. And let’s not overlook the transition from cumbersome coins to the now-pervasive TITO system – who would have imagined in 1998 that physical coins would practically disappear from casinos?
Regarding advancements, AGS takes pride in being a company propelled by innovation. Could you provide details on your current strategy for innovation?
Progress in gaming is a distinct creature compared to, for instance, the wider consumer market. It frequently involves adapting existing technologies or interactive encounters from other sectors and reinterpreting them to enhance the gambling experience. One initiative we’re pursuing is introducing a generic version of our Bonus Spin Blackjack.
The “Extra Turn”, connected to our Twenty-One tables, isn’t your typical reward wheel. Imagine this: you’re on a roll after a Twenty-One victory, and you get a chance to spin for a bonus! It’s a superb method to amplify the thrill and maintain player engagement. But here’s where it becomes truly captivating. We provide a “blank slate” version of the Extra Turn, allowing casinos to personalize the rewards for various players.
Consider this. Desire to entice young adults? Discard the customary monetary awards and present VIP beverage service, MMA event passes, or even daytime poolside lounge access. It’s all about comprehending what motivates your demographic. By granting casinos the ability to modify prizes and their frequency of updates, we’re providing them with a potent instrument to engage their intended audience.
What makes the “Extra Turn” genuinely groundbreaking is its transformation of the conventional concept of victory. It’s no longer solely about the money. Now, players have an opportunity to win remarkable, one-of-a-kind experiences alongside their winnings.
Talking about success, the organization prioritizes its workforce. Why is the workplace atmosphere so crucial to us? Because it encompasses everything. An enterprise is only as exceptional as its staff. That’s why we’re committed to fostering an enjoyable, encouraging, and welcoming setting where everyone can flourish. We’re not interested in inflexible chains of command or engaging in office politics.
At the core of AGS, it’s not solely about compensation. We’re cultivating a close-knit team. This signifies fostering a nurturing atmosphere where each individual feels empowered and valued. It also entails investing in resources that champion well-being.
We’ve initiated numerous internal initiatives centered around physical health, mental wellness, and contributing to the community. Just last Friday, our Las Vegas branch hosted a midday plank competition. You would have witnessed a dozen groups vying for victory in the break room!
Our staff members are the essence of our organization. They propel our achievements, so upholding them at every stage is paramount to us.
What are AGS’s primary objectives for the remaining months of the year?
Implementation and progress are crucial as we approach 2017. We’ll persist in refining and enhancing all facets of our enterprise while investigating fresh prospects worldwide.
Any emerging sectors you’re aiming to penetrate, geographically or product-related?
Undoubtedly. We have some captivating new offerings debuting later this year, encompassing a premium slot cabinet poised to captivate attention, and our inaugural shuffler crafted specifically for table games. We believe both of these possess the potential to revolutionize the industry. Furthermore, we have numerous new slot and table games scheduled for release this year, in addition to the white-label iteration of our Bonus Spin product previously mentioned.
Regarding market expansion, we’re continuously seeking approvals and licenses to enter new territories across the United States.
The Silver State is a vital region where expansion is a primary objective. Field tests have commenced there utilizing the ICON housing and a selection of premier game offerings, featuring titles such as “Aureate Serpent”, “Crimson Serpent”, and “Inferno Lupus”. The highest-performing game, “Colossus’ Fortune”, received approval from Nevada regulatory bodies in the second month of the year, making 2016 an exhilarating year thus far.
Recently, Drew Pawlak was designated to supervise your endeavors in Mexico and Latin America. What is the tactical significance of these marketplaces for AGS?
We believe these markets hold significant importance. Both geographical areas present substantial potential for expansion, and we are assured in Drew’s capability to spearhead our initiatives there. The acquisition of Cadillac Jack provided an initial presence in Mexico, but sustaining and broadening our footprint in the region is critical. Throughout Latin America, considerable transformation and growth are transpiring, particularly in nations like Brazil. The hope is for economic improvement in these countries over the coming years, allowing us to leverage growth prospects.
What are your perspectives on the recent merger and acquisition activity within the sector, such as Novomatic’s proposed purchase of a 53% share in Ainsworth? What implications does this hold for AGS? Is the company open to pursuing acquisitions?
Commencing in early 2014, AGS has finalized approximately nineteen acquisitions, procuring assets or entire entities. Consequently, the active pursuit of acquisitions has been ongoing for several years, aligning with the practices of any effectively managed organization.
In the previous year, our company made a significant impact by purchasing Cadillac Jack and RocketPlay, a studio specializing in mobile casino games. The game provider market has experienced a wave of mergers and acquisitions, some driven by necessity, others merely following the trend.
While we observe the activities of our competitors, it has minimal influence on our own approach. Our primary objective is to elevate the quality of our games to the highest possible standard.
The most valuable guidance I received regarding this sector came from two gaming executives I had the privilege of working alongside, Joe Latti and Tim Parrott. They emphasized the importance of prioritizing customer satisfaction and attentiveness, assuring me that profitability would naturally follow.
Another piece of advice that resonated deeply, though not from a CEO, holds true: “Proactivity is essential for success; you must make things happen.”
What captivates me about this industry is the immediate visibility of our efforts, whether they result in triumph or setback. Ultimately, our purpose lies in crafting enjoyable and engaging experiences.