An American Gaming Trailblazer
David Lopez, the top dog at American Gaming Systems, chatted with Gambling Insider about his two decades in the gaming sector and the thrilling prospects that lie ahead for AGS.
**Reflecting on your experience, how would you characterize your path in the gaming sector?**
My adventure commenced back in 1998 at Shuffle Master. I swiftly developed a passion for the industry, the organization, and its people. I dedicated almost 15 years there, assuming numerous roles – temporary CEO, Executive VP, President of the Americas, Senior VP of Product Management, and even a seat on the board. It was a transformative period that truly molded my professional trajectory and knowledge base. At the outset, our revenue stood at approximately $27 million. By the time I departed in 2012, we were nearing $260 million. Being part of such remarkable growth was extraordinary. Following Shuffle Master, I joined Global Cash Access (now Everi) as CEO, and then in early 2014, I came on board at AGS as President and CEO.
**How has the industry evolved during your tenure?**
Wow, it has undergone a dramatic metamorphosis 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 a massive expansion in both tribal and commercial gaming. Currently, nearly every state in the U.S. has some form of legalized wagering.
The panorama of casino game creators has truly evolved. When I began, IGT dominated, practically monopolizing the market. Businesses like Aristocrat and Konami were just beginning to establish themselves. Jump ahead through years of expansion and consolidations, and the competitive landscape appears completely different. Smaller entities such as AGS, Ainsworth, and Incredible Technologies are all vying for a piece of the action, an unthinkable scenario a decade ago.
The gamblers themselves have also shifted, along with the kinds of games they favor. The dawn of the 21st century witnessed the surge of “Australian-style” games, exposing players to a whole new degree of unpredictability. Technology also upped its ante, quite literally, with enhanced visuals, audio, and engaging bonus elements. And naturally, the transition from physical coins to the now-pervasive TITO mechanism was monumental. Back in ’98, no one would have believed the disappearance of coins from casinos!
Regarding advancements, AGS takes pride in its innovative nature. What are some of your present concentrations in that domain?
I believe ingenuity within the gaming sector differs somewhat from innovation in, for instance, the wider consumer realm. We frequently observe gaming innovation manifest as adapting pre-existing technologies or interactive encounters from the consumer world and reinterpreting them to enrich the wagering experience. One endeavor we’re pursuing is providing a white-label iteration of our Bonus Spin Blackjack.
The Incentive Rotation Disk is a personalized, digital reward cycle connected to a twenty-one table. When participants succeed at twenty-one, they are granted an opportunity to rotate the cycle, introducing an additional element of thrill and captivation to the game. Moreover, the adaptable branding feature of the Incentive Rotation Disk enables gaming establishments to tailor the rewards on the cycle, allowing them to entice diverse player groups.
For instance, if a gaming establishment aims to draw in a younger generation, they could present experiential incentives such as premium bottle service, combat sport event passes, or daytime lounge shelters instead of monetary or complimentary play options. Granting gaming establishments authority over the rewards and the frequency of their modification empowers them to advertise and target the demographics most significant to their business.
The groundbreaking aspect of the Incentive Rotation Disk lies in its expansion of winning possibilities at the gaming table. Typically, players engage solely for a monetary reward. Now, they can participate for both monetary gains and distinctive experiences.
AGS prioritizes its organizational ethos. What makes the workplace environment so crucial to you?
The essence of culture revolves around individuals. A company alone accomplishes nothing; it is the people who drive its success. Therefore, at AGS, we are dedicated to cultivating an enjoyable, encouraging, and fulfilling atmosphere where our employees can flourish.
Furthermore, we discourage internal politics and value transparent communication.
At AGS, compensation is only the beginning. We’re fostering a close-knit community. Imagine a workplace filled with support, motivation, appreciation, and every resource you need to flourish, both professionally and personally.
We prioritize the well-being and contentment of our team through numerous initiatives. For instance, last Friday in Las Vegas, a group of us participated in a two-minute plank challenge during our break. Talk about an abdominal workout!
Our employees are the core of our success, so prioritizing their well-being is a top priority.
Here’s a sneak peek: we’re on the verge of unveiling some groundbreaking developments later this year. Picture a cutting-edge slot machine cabinet that will surpass the competition, along with our inaugural venture into the electronic table game market with a revolutionary shuffler. And get ready for an array of new slot and table games, including the white-label edition of Bonus Spin I mentioned earlier.
We’re blazing a trail, obtaining approvals and licenses in emerging markets across the United States, expanding both our footprint and our exceptional game portfolio.
The Silver State is a key location for our expansion efforts, and we’re putting a lot of energy into growing our footprint there. We’ve dipped our toes in the water with our ICON machines and popular titles like “Golden Dragon,” “Red Dragon,” and “Fire Wolf.” Our flagship game, “Grand Red” (also known as “Giant Diamond”), received regulatory approval in Nevada in February, making 2016 a very promising year!
Your choice to appoint Drew Pawlak as the head of Mexico and Latin America is intriguing. What makes these particular regions so crucial to AGS’s broader plan?
These areas are absolutely vital to our success. They hold immense potential for expansion, and we are confident in Drew’s capabilities to spearhead our efforts. Our purchase of Cadillac Jack provided us with a strong presence in Mexico, but we must continue to strive for sustained growth and visibility in the region. Latin America in general, particularly Brazil, is undergoing significant transformations and experiencing growth. We anticipate their economies to rebound in the coming years, and we’ll be well-positioned to leverage these opportunities and broaden our operations.
The industry has seen a surge in mergers and acquisitions, such as Novomatic’s attempt to purchase 53% of Ainsworth. What are your thoughts on the potential impact of this trend on AGS? Are you considering any acquisitions of your own?
We’ve been quite busy on that front ourselves. Since the beginning of 2014, AGS has participated in approximately 19 acquisitions, acquiring valuable resources and companies. As with any astute business, we’re constantly exploring promising avenues for expansion through strategic acquisitions.
In the previous year, our company made significant strides by purchasing Cadillac Jack and RocketPlay, a firm specializing in mobile games. Although I believe some merging within the industry is unavoidable, I’ve also observed companies making purchases simply to keep up with current practices. To be frank, the actions of our rivals haven’t truly affected us. We’re staying informed, but our concentration remains on our own trajectory and excelling in our strengths.
Two key pieces of guidance have resonated with me throughout my professional journey in gaming. The first originated from a pair of gaming CEOs I had the honor of collaborating with, Joe Latti and Tim Parrott. Their consistent message was, “Prioritize your clientele above all else, place them at the core of every endeavor, and financial gains will naturally follow.” The second insight, while not from a CEO, holds equal weight: “Embracing audacity and taking calculated risks is essential for achieving success.”
What ignites my passion for working in the gaming industry? Its incredibly rapid pace and the near-instantaneous visibility of your efforts, whether positive or negative. Moreover, ultimately, our business revolves around the concept of enjoyment!
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