A Leading Figure in US Gaming
David Lopez, the top executive at American Gaming Systems, spoke with Casino Enterprise Management about his twenty years in the gaming sector and the exciting future of AGS.
**CEM:** David, share with us your path in the gaming world.
**Lopez:** My journey commenced in ’98 when I joined Shuffle Master. I felt an immediate connection – with the industry, the organization, the entire atmosphere. I spent nearly 15 years there, holding various positions: interim CEO, Executive VP, President of the Americas, Senior VP of Product Management, even a position on the Board. It was transformative, truly shaping my professional trajectory and knowledge. When I began, we were generating around $27 million annually. By 2012, when I moved on, we were nearing $260 million! Being a part of such expansion was remarkable. Following Shuffle Master, I assumed the role of CEO at Global Cash Access (now Everi) before arriving at AGS as President and CEO in early 2014.
**CEM:** How has the sector evolved during your tenure?
**Lopez:** Wow, talk about a complete reversal! When I started, the Indian Gaming Regulatory Act (IGRA) was relatively new – perhaps 10 years old. Tribal gaming was a small portion of what it is today. We’ve witnessed significant growth, in both Tribal and commercial gaming. Currently, you can find some type of legal gambling in almost every state!
The gaming provider scene has undergone a significant transformation. During my early days, IGT reigned supreme, while companies such as Aristocrat and Konami were just beginning to make their mark. Today, following numerous mergers and acquisitions, the competitive landscape looks vastly different. Smaller entities like AGS, Ainsworth, and Incredible Technologies can now capture a larger market share than was conceivable a decade ago.
Both players and game preferences have evolved as well. The early 21st century witnessed the emergence of “Australian-style” games and a growing player appetite for heightened volatility. Technological advancements have ushered in superior graphics, audio, and interactive bonus features. Furthermore, the transition from coins to the now-standard TITO system represents a pivotal development. It’s highly unlikely that anyone in 1998 could have foreseen the demise of coins in casinos.
AGS positions itself as a company driven by innovation. In what ways are you currently pushing the boundaries of innovation?
Innovation within the gaming industry diverges from innovation in the broader consumer realm. In gaming, innovation often entails adapting existing technologies or interactive encounters from the consumer world and repurposing them to enhance the gambling experience. One such endeavor involves the release of a white label iteration of Bonus Spin Blackjack.
The Extra Turn is a very engaging addition to digital blackjack. Essentially, it’s a virtual wheel of fortune that appears after a gambler wins a round. This element injects a bit of thrill into the gameplay and provides players with an objective beyond simply accumulating winnings.
A notable aspect is the ability of gambling platforms to personalize the wheel’s rewards to attract specific player demographics. For instance, rather than solely offering monetary incentives, they could include perks such as exclusive access at entertainment venues or passes to sporting events – enticements that might resonate more strongly with a younger audience. It’s a strategic approach for casinos to tailor their promotional efforts and capture the interest of particular players.
The Extra Turn exemplifies the efforts of internet casinos to enhance the entertainment value of their games. It’s no longer solely about financial gain; it’s about fostering an enjoyable and lasting experience.
The firm responsible for the Extra Turn, AGS, appears to prioritize its workforce as well. They are committed to cultivating a positive and encouraging workplace where every individual can flourish. They also emphasize transparent communication and strive to minimize internal conflicts. It seems like a very desirable place of employment!
At AGS, compensation is just the beginning. We’re fostering a close-knit team environment. It’s about encouragement, inspiration, acknowledging accomplishments, and providing our staff with the resources to flourish, both in their personal lives and careers. We have numerous initiatives centered around physical wellness, holistic well-being, and contributing to the community. Just recently, our Las Vegas branch had a great time with a two-minute plank competition during their lunch hour – what a fantastic way to keep in shape! Prioritizing our employees is a given; they are the core and spirit of our achievements. They are what make AGS unique. Our primary objective for the remainder of the year? Implementation and sustaining our strong momentum into 2017. We’re dedicated to refining our processes and investigating new prospects worldwide.
Indeed, we are certainly exploring expansion into fresh markets, geographically and within our product portfolio. We have some impressive new products debuting later this year, including a premium slot machine cabinet and our inaugural shuffler for table games – we believe both have the potential to be revolutionary. Additionally, we’ll be introducing a multitude of new slot and table games, along with that white-label edition of Bonus Spin I mentioned previously. Furthermore, we’re continuously obtaining licenses and approvals in new markets throughout the United States. The future is bright!
The Silver State is a pivotal region for our growth. We recently dipped our toes in the water with our ICON units and sought-after games such as “Aureate Serpent,” “Crimson Serpent,” and “Blaze Lupine.” Our highest-earning game, “Majestic Crimson” (alternatively known as “Colossal Gemstone”), received approval from Nevada officials back in the second month of the year, indicating that 2016 is poised to be a significant period!
We’re quite curious about your choice to assign Drew Pawlak to spearhead your endeavors in Mexico and Latin America. What makes these particular territories so crucial to AGS’s approach?
Both regions possess immense possibilities for our company. We perceive considerable space for expansion, and having an individual like Drew in charge is exceptional. Our purchase of Cadillac Jack provided us with a firm foundation in Mexico, but we must ensure we’re not merely present there, but flourishing. Latin America in its entirety, particularly Brazil, is undergoing numerous favorable transformations and development. We’re hopeful about the financial forecast for these nations and trust there will be some excellent prospects for us to leverage in the approaching years.
There’s been substantial merger and acquisition movement within the sector recently, such as Novomatic’s offer for a 53% share in Ainsworth. What’s your perspective on how this will affect AGS? Are you contemplating any acquisitions yourselves?
We’ve actually participated in approximately nineteen acquisitions since the beginning of 2014, acquiring resources and businesses, so we’re perpetually searching for advantageous prospects, as any astute company would.
In the previous year, we implemented significant changes, such as incorporating Cadillac Jack and RocketPlay, a company specializing in mobile games. Frankly, I anticipate numerous companies consolidating within this sector – some with valid justifications, others merely following the trend. Regarding our organization, our rivals’ endeavors haven’t considerably altered our approach. We remain observant, undoubtedly, but our emphasis persists on our own expansion. This evokes valuable guidance I received from industry icons, Joe Latti and Tim Parrott. They frequently stated, “Prioritize the client, execute flawlessly, and profitability will ensue.” Additionally, another individual – not a CEO, yet insightful nonetheless – once advised, “Every missed opportunity equates to a missed shot.” Ultimately, why am I passionate about this field? Because the consequences of your efforts, whether positive or negative, are almost instantly apparent. Furthermore, our business revolves around enjoyment – what’s not to appreciate?
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