A Leading Figure in the U.S. Gaming Industry
In an open discussion with Gambling Insider, David Lopez, the CEO of American Gaming Systems (AGS), reminisced about his two decades in the gaming sector and shared his optimistic outlook for AGS’s future.
**Reflecting on your experience, how would you characterize your path in the gaming realm?**
My journey commenced in 1998 when I joined Shuffle Master. The industry’s dynamism, the company’s spirit, and its lively atmosphere immediately captivated me. For almost 15 years, I held various roles – interim CEO, Executive Vice President, President of the Americas, Senior VP of Product Management, and even a position on the Board of Directors. It was a transformative period, molding my career and establishing my comprehension of this business. When I began, our annual revenue was around $27 million. By my departure in 2012, we were nearing an astounding $260 million. I feel incredibly privileged to have contributed to such remarkable expansion. Following Shuffle Master, I assumed the CEO position at Global Cash Access (now Everi) before discovering my current role as President and CEO of AGS in early 2014.
**How has the industry environment evolved throughout your tenure?**
It’s undergone a complete transformation over the past 20 years. When I started, the Indian Gaming Regulatory Act (IGRA) was relatively recent, perhaps a decade old, so tribal gaming was still finding its place. Since then, we’ve observed a significant growth in both tribal and commercial gaming. Today, it’s challenging to find a state in the U.S. without some form of legalized gaming.
The realm of slot machine creators has experienced a dramatic transformation. In the past, IGT held an unchallenged dominance, reigning supreme. Aristocrat and Konami were only beginning to make their mark. Jump ahead through years of company unions and buyouts, and the competitive landscape is nearly impossible to recognize. Emerging competitors like AGS, Ainsworth, and Incredible Technologies have established their own positions, capturing a far larger portion of the market than anyone could have foreseen ten years ago.
The gamblers themselves and the games they favor have also undergone a metamorphosis. The dawn of the new millennium witnessed the ascent of “Australian-style” games, exposing players to an entirely new degree of risk. Technological advancements have naturally played a significant part as well, with visuals, audio, and bonus elements becoming progressively advanced. And let’s not overlook the monumental transition from physical currency to the now-widespread ticket-in, ticket-out system. I doubt anyone back in 1998 would have believed you if you claimed coins would practically disappear from casinos.
The Extra Turn Wheel is a modifiable, digital reward spinner that connects with a twenty-one table. Upon achieving a twenty-one, participants can spin the Extra Turn Wheel for an opportunity to receive rewards. This injects enthusiasm into the game and elevates player involvement. A remarkable feature is the ability for gambling establishments to personalize the prizes on the wheel to entice various player demographics. For instance, to attract a younger generation, they could present rewards such as premium bottle service, mixed martial arts event passes, or even a reserved spot at a trendy daytime club, rather than solely bonus funds or complimentary meals. This adaptability enables casinos to focus their marketing and promotional efforts on the players they aim to attract most effectively.
What distinguishes the Extra Turn Wheel as groundbreaking is its provision of additional winning opportunities for players. Conventionally, participants engaged solely for monetary gains, but now they have the chance to win both cash and distinctive experiences.
AGS places significant emphasis on its organizational ethos. What is the significance of workplace culture?
Culture revolves around individuals. A company alone accomplishes nothing; it is the workforce that drives achievements. Therefore, at AGS, we are dedicated to cultivating an enjoyable, encouraging, and fulfilling atmosphere where our employees can flourish. Furthermore, we uphold the values of transparent communication and an environment free from internal politics.
At AGS, we’re more than coworkers; we’re a close-knit team. It’s about experiencing support, feeling empowered, and receiving acknowledgment, equipped with everything necessary to flourish, both individually and professionally.
We prioritize well-being and contributing to our community. Recently, in our Las Vegas location, a group of us stepped away from our desks to participate in a two-minute plank competition. It was incredibly fun!
Our employees are paramount. They are the core and spirit of our achievements, and we make every effort to demonstrate our appreciation.
Speaking of achievements, prepare for some groundbreaking innovations! We have an impressive new slot machine design in development that will surpass the competition, along with our initial venture into the table game industry with a cutting-edge shuffling device. Furthermore, anticipate a wave of new slot and table games entering the market shortly, featuring a unique iteration of our Bonus Spin accessible to everyone.
We’re also making significant progress in broadening our presence across the United States, consistently obtaining approvals and licenses in new regions. The future appears promising at AGS!
The Silver State is a vital component of our growth plan. We recently commenced field trials for our ICON containers and well-received titles such as Golden Serpent, Crimson Dragon, and Blaze Lupine in that region. Our top earner, the Big Crimson gaming machine, just received the green light from Nevada officials in the second month of the year, indicating that 2016 is on track to be a significant period!
Regarding expansion, you recently designated Drew Pawlak to spearhead your endeavors in Mexico and the Latin American region. What is the tactical significance of these markets for AGS?
We perceive immense potential in both Mexico and Latin America. These markets are poised for expansion, and we are certain that Drew is the ideal candidate to guide us there. We already possess a presence in Mexico due to our purchase of Cadillac Jack, but it is crucial for us to sustain and amplify that presence. As for the remaining parts of Latin America, we observe considerable transformation and prospects, particularly in Brazil. We are optimistic that as these economies rebound in the coming years, we will be strategically positioned to leverage the increasing demand for gaming.
There has been considerable merger and acquisition activity within the sector recently, such as Novomatic’s proposed acquisition of a 53% share in Ainsworth. What are your thoughts on the impact of this on AGS, and are you interested in pursuing any acquisitions yourselves?
We have actually been involved in approximately nineteen acquisitions since the beginning of 2014, where we acquired either assets or entire enterprises. Therefore, we are perpetually exploring opportunities, as any astute company would.
In the previous year, we made a significant impact with major acquisitions, such as incorporating Cadillac Jack and mobile game creator RocketPlay into our organization.
To be frank, I believe the gaming provision sector is primed for amalgamation – certain mergers were inevitable, although there’s undoubtedly some trend-following occurring as well.
Regarding the actions of other firms, we’re observant, certainly, but it doesn’t substantially alter our strategy. Our priority consistently revolves around developing the highest quality games for our users.
The most valuable guidance I received concerning this industry? Two things resonate. Firstly, from a pair of gaming CEOs I had the privilege of collaborating with, Joe Latti and Tim Parrott: ‘Prioritize your players, provide them with their desires, and profitability will ensue.’
The second wasn’t from a CEO, but it remained with me: ‘Every opportunity not seized is an opportunity missed.’
Why am I passionate about this industry? It’s straightforward: success hinges on your creations, and ultimately, we operate within the realm of entertainment.
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