## An American Gaming Trailblazer
David Lopez, the head honcho at American Gaming Systems, recently chatted with Casino Enterprise, looking back on his two-decade adventure in the gaming world and sharing his optimistic outlook for AGS’s future.
**Casino Enterprise:** Walk us through your career in gaming so far.
**David Lopez:** My gaming odyssey commenced in 1998 at Shuffle Master, where I rapidly became engrossed in the sector, the organization, and its ethos. I dedicated almost 15 years there, assuming diverse positions such as temporary CEO, second-in-command, President of the Americas, Senior VP of Product Development, and board member. It was a transformative period that molded my professional path and expertise. When I joined, we were generating around $27 million in yearly revenue. By my departure in 2012, the company was nearing $2.6 billion. I’m immensely proud to have contributed to such remarkable expansion. Following Shuffle Master, I joined Global Cash Access (now Everi) as CEO and subsequently arrived at AGS as President and CEO in early 2014.
**Casino Enterprise:** How has the sector evolved during that period?
**David Lopez:** Well, it’s experienced a monumental transformation over the past 20 years. When I began, the Indian Gaming Regulatory Act (IGRA) was only about a decade old, so tribal gaming was still relatively limited. Since then, we’ve witnessed massive growth in both tribal and commercial gaming. Today, nearly every state in the U.S. has some type of legalized gambling.
The landscape of the casino equipment industry has undergone a dramatic transformation. In the early days, IGT reigned supreme, commanding a lion’s share of the market. Emerging contenders like Aristocrat and Konami were just beginning to establish their presence. Today, the industry has witnessed significant consolidation, resulting in a vastly different competitive terrain. Niche players such as AGS, Ainsworth, and Incredible Technologies have emerged as formidable forces, capturing a considerably larger portion of the market compared to their standing a decade ago.
The demographics of gamblers have evolved, as have their gaming preferences. The early 21st century saw the emergence of “Australian-style” games, introducing players to a more unpredictable and high-variance experience. Technological advancements have also played a pivotal role, with games showcasing enhanced visuals, audio, and engaging bonus elements. Furthermore, the transition from traditional coins to the now-pervasive TITO (Ticket-In, Ticket-Out) system has been monumental. It’s safe to say that in 1998, the notion of coins virtually disappearing from casinos would have been met with disbelief.
AGS positions itself as a company at the forefront of innovation. Could you elaborate on some of the ways in which you are currently driving innovation?
Innovation within the gaming realm differs from innovation in the broader consumer market. In gaming, it often involves adapting existing technologies or interactive experiences from the consumer world and reimagining them to enhance the gambling experience. One of our current initiatives is the launch of a white-label version of Bonus Spin Blackjack.
The Extra Turn functions like a virtual reward spinner that can be incorporated into a Blackjack game. This addition elevates the thrill factor as participants get a chance to spin the wheel upon achieving a score of 21. Establishments have the flexibility to tailor the rewards displayed on the wheel to draw in specific player demographics.
For instance, rather than solely providing cash or dining credits, a venue could present VIP lounge access, mixed martial arts event entries, or daytime club admissions to entice a more youthful audience. By modifying the prizes and their frequency, venues can enhance the precision of their promotional efforts.
A particularly impressive aspect of the Extra Turn is its ability to provide players with increased winning opportunities. It transcends mere monetary gains, introducing the allure of potentially securing distinctive experiences.
On the subject of success, the organization responsible for the Extra Turn, AGS, places significant emphasis on its workforce. They operate under the principle that a company’s quality directly correlates with its personnel, leading them to prioritize a positive and encouraging atmosphere where everyone has the potential to excel. Furthermore, they champion transparent dialogue and strive to maintain an environment free from workplace politics.
At AGS, compensation is secondary to fostering a familial environment where individuals feel supported, empowered, and appreciated. Our focus is on cultivating a culture of well-being, offering resources and programs that extend beyond the typical workday.
Consider last Friday at our Las Vegas branch. A midday plank challenge saw twelve colleagues testing their endurance with a two-minute hold. These seemingly small gestures, these instances of fellowship and friendly rivalry, are what distinguish AGS.
We provide a range of initiatives centered on physical health, mental well-being, and community involvement. Ultimately, our employees are our greatest strength. Their achievements are our achievements.
The Silver State represents a vital region for our growth strategy. We just initiated field tests there featuring our ICON platform and several of our leading titles, such as “Aureate Serpent”, “Crimson Serpent”, and “Inferno Lupine”. Our highest-earning game, “Gemstone Quarry”, received authorization in Nevada back in the second month of the year, so 2016 appears to be promising.
Recently, you designated Drew Pawlak to oversee the firm’s endeavors in Mexico and Latin America. What is the tactical significance of these territories for AGS?
These are incredibly significant markets for us. Both possess immense expansion possibilities, and we are delighted to have Drew spearheading the effort there. The purchase of Cadillac Jack provided us with a presence in Mexico, but it’s critical for us to sustain and broaden our footprint in the area. Examining Latin America as a whole, particularly Brazil, the region is undergoing substantial change and development. We are optimistic that the economies in these nations will strengthen in the coming years, and we’ll be positioned to leverage the opportunities there.
What are your perspectives on the current mergers and acquisitions activity within the sector, for instance, Novomatic’s proposed purchase of a 53% share in Ainsworth? How does this affect AGS? Does your company have an interest in pursuing acquisitions?
AGS has actually participated in approximately nineteen acquisitions since the start of 2014, encompassing both asset and company purchases, so we have been investigating prospects as any astute organization would throughout the years.
In the previous year, our company garnered significant attention by securing Cadillac Jack and the mobile game creator, RocketPlay. Although I believe some merging within the supply network is essential, I also perceive a degree of “competitive emulation” occurring. We refuse to let the merger and acquisition actions of competing vendors determine our own strategies. Certainly, we remain aware, but it doesn’t cause us undue stress. Our priority continues to be delivering exceptional service to our clientele. Regarding that, what is the most valuable guidance you’ve received concerning the gaming sector? Two pieces of wisdom have resonated deeply with me. The initial insight came from two former gaming executives I had the privilege of collaborating with, Joe Lahti and Tim Parrott. They advised, ‘Prioritize the client above all else, and profitability will naturally follow.’ The second, although not originating from a CEO, has proven equally influential: ‘Every opportunity not seized is an opportunity missed.’ To summarize, what aspects of working in this field do you find most fulfilling? This industry offers the chance to witness the outcomes of your endeavors, both positive and negative, in a rapid timeframe. Ultimately, our purpose is to provide amusement and enjoyment.
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