## A Top Player in the US Gaming World
David Lopez, the head honcho at American Gaming Systems, recently chatted with Gambling Insider. He looked back on his two decades in the gaming sector and shared his bright outlook for AGS moving forward.
**Can you walk us through your career in gaming up to this point?**
My adventure in gaming kicked off back in 1998 when I joined the ranks at Shuffle Master. I instantly felt comfortable within the industry, the organization, and its overall atmosphere. I dedicated almost 15 years of my life there, taking on numerous roles – temporary CEO, Executive Vice President, President of the Americas, Senior Vice President of Product Management, and even a seat on the board. It was a transformative period that molded my professional path and my grasp of the business. When I first started, the company was pulling in around $27 million in revenue. By the time I departed in 2012, we were nearing a staggering $260 million. I’m immensely proud to have played a part in such remarkable expansion. Following my time at Shuffle Master, I held the CEO position at Global Cash Access (now known as Everi) before assuming the mantle of President and CEO at AGS in early 2014.
**How has the gaming world evolved during that period?**
Well, the gaming landscape has experienced a monumental transformation over the past 20 years. When I entered the scene, the Indian Gaming Regulatory Act (IGRA) was merely a decade old, and tribal gaming was still finding its legs. Since then, we’ve witnessed a colossal surge in both tribal and commercial gaming. These days, you’d be hard-pressed to find a state in the US that doesn’t have some form of legalized gambling.
The landscape of gaming providers has undergone a complete metamorphosis. In the past, IGT reigned supreme, the unchallenged leader. Aristocrat and Konami were merely fledglings, just beginning to establish their presence. Today, the industry has been reshaped by a wave of consolidations and buyouts. Smaller contenders like AGS, Ainsworth, and Incredible Technologies are now vying for dominance with an intensity that would have been unthinkable ten years ago.
The nature of the games themselves has also evolved. Recall the emergence of “Australian-style” games in the mid-2000s? Players developed a taste for risk, and the technology at the time allowed for enhanced visuals, audio, and those bonus elements everyone craves. And let’s not overlook the monumental shift from physical coins to the TITO system – a truly groundbreaking change. Back in ’98, predicting the disappearance of coins from casinos would have been met with disbelief.
Regarding advancements, AGS positions itself as a forward-thinking enterprise. How do you define innovation in the present day?
Well, innovation within the gaming realm differs significantly from, for instance, the broader consumer space. It frequently entails leveraging existing technology or interactive encounters and tailoring them to elevate the gambling experience. One such endeavor on our part is the white-label iteration of Bonus Spin Blackjack.
The Extra Turn feature is a configurable, digital game of chance that links with a casino’s twenty-one tables. Upon a gambler reaching twenty-one, they are granted a spin on the Extra Turn wheel for an opportunity to gain rewards. This introduces a thrill to the game and maintains player interest. A notable aspect is the ability for casinos to personalize the rewards on the wheel to appeal to specific demographics.
For instance, to entice a younger audience, a casino could present VIP beverage service, mixed martial arts event passes, or even entry to a daytime poolside lounge instead of conventional rewards like money or complimentary meals. Because the casino manages the rewards and their frequency of updates, they possess significant flexibility in tailoring promotions to different player segments.
Extra Turn revolutionizes the gaming experience by providing players with more than just the possibility of monetary gains. It allows them to play for distinctive experiences as well.
AGS places great importance on its corporate environment. What makes the atmosphere of the workplace so crucial to you?
The essence of culture lies in its people. An organization doesn’t function autonomously; it’s the workforce that drives all outcomes. Therefore, at AGS, we prioritize cultivating a positive, encouraging, and fruitful setting where our staff can flourish and achieve their utmost capabilities.
Furthermore, we advocate for transparent communication and abstaining from workplace politics.
At AGS, compensation isn’t our sole focus. We operate as a close-knit unit, consistently ready to provide assistance and encouragement to one another. We understand that everyone requires support, occasional praise, and someone who prioritizes their well-being.
Numerous initiatives are in place at our workplace to promote the health and happiness of our team. For instance, last Friday, a group of us in the Las Vegas office participated in a midday plank challenge. We held it for two minutes – give it a shot sometime!
Our employees are the core of this organization. When we prioritize their needs, they, in turn, prioritize the success of our endeavors. It’s truly that straightforward.
The Silver State is a key objective in our expansion strategy. We’ve dipped our toes into the market, introducing our ICON cabinets and high-performing games like Golden Dragon, Red Dragon, and Fire Wolf. Furthermore, our flagship slot theme, “Colossal Diamonds” featuring the Red Emperor character, received approval from Nevada regulators in February. It’s safe to say 2016 is already off to an exciting start!
Recently, Drew Pawlak joined your team to spearhead operations in Mexico and Latin America. What level of significance do those markets hold for AGS?
These regions are undeniably critical to our success. We recognize the immense growth potential in both areas and are delighted to have Drew leading the charge. The acquisition of Cadillac Jack provided us with a strong presence in Mexico, but it’s vital that we not only sustain but also amplify our efforts there. Looking at Latin America broadly, the entire region is undergoing significant transformations and expansion, particularly in nations like Brazil. We’re confident that these economies will continue their upward trajectory in the coming years, and we’re poised to leverage those growth opportunities as they arise.
What’s your perspective on the recent surge in industry consolidation, such as Novomatic’s proposed purchase of a 53% share in Ainsworth? What implications does this have for AGS, and are you exploring any acquisitions yourselves?
We’ve been quite proactive on that front ourselves. Since early 2014, AGS has participated in approximately 19 acquisitions, acquiring assets and even entire businesses. Therefore, it’s fair to say we’re always searching for promising prospects, as any astute company would.
In the previous year, our company garnered significant attention by securing ownership of Cadillac Jack and the mobile game creator, RocketPlay. Although I believe a substantial number of the consolidations and acquisitions occurring within the sector are justifiable, there’s an element of competitive mimicry at play as well. Regarding the merger and acquisition endeavors of other providers, they don’t have a direct effect on our operations. Naturally, we monitor such activities, but they don’t constitute our primary concern. Our emphasis has consistently been, and remains, on maintaining concentration on our own expansion.
The most valuable guidance I’ve received concerning the gaming sector was imparted by two former chief executives I collaborated with, Joe Latti and Tim Parrott. Their counsel was, ‘Consistently prioritize the well-being of your clientele. Direct your attention towards the customer, and profitability will ensue.’ An additional piece of wisdom, although not originating from a CEO, has resonated with me: ‘One must possess the willingness to embrace calculated gambles. The fear of setbacks cannot hinder the pursuit of triumph.’
What truly captivates me about engaging in the gaming realm is the swift manifestation of outcomes stemming from one’s endeavors, irrespective of whether they culminate in success or disappointment. Ultimately, our enterprise revolves around the creation of enjoyment and amusement.
