A Top Executive in the U.S. Gambling Sector
In a recent interview with *Gaming Insider*, David Lopez, Chief Executive Officer of American Gaming Systems, reflected on his two decades in the gaming sector and expressed his positive outlook for AGS’s future.
**Gaming Insider:** Can you share a little about your path in the gaming sector thus far?
**David Lopez:** My path commenced in 1998 when I joined Shuffle Master. I instantly felt comfortable in the industry, the organization, and its ethos. I spent almost 15 years there, holding various roles, including temporary CEO, Chief Operating Officer, President of the Americas, Senior Vice President of Product Development, and board member. It was a transformative experience that molded my career and my comprehension of the business. When I began, the company was generating about $27 million in revenue. By the time I departed in 2012, we were nearing $2.6 billion. It was a privilege to be a part of such remarkable expansion. Following Shuffle Master, I became CEO of Global Cash Access (now Everi) and subsequently joined AGS as President and CEO in early 2014.
**Gaming Insider:** What transformations has the industry witnessed during your tenure?
**David Lopez:** It’s experienced a monumental change over the past 20 years. The Indian Gaming Regulatory Act (IGRA) was only about a decade old when I started, so tribal gaming was still in its early stages. Since then, we’ve witnessed a surge in both tribal and commercial gaming. Today, nearly every state in the U.S. has some type of legalized wagering.
The panorama of casino game creators has experienced a dramatic transformation. In the past, IGT reigned supreme, essentially dominating the industry. Competitors such as Aristocrat and Konami were only beginning to establish themselves. Today, the situation is entirely different due to many years of development and mergers. Smaller companies like AGS, Ainsworth, and Incredible Technologies, among numerous others, are now competing for market share – a scenario unimaginable a decade ago.
The gamblers themselves have evolved, along with their gaming preferences. The emergence of “Australian-style” games in the early 2000s significantly altered the landscape, introducing a new degree of risk that players embraced. Furthermore, the influence of technology cannot be overlooked. Games are now visually stunning experiences with impressive soundtracks and engaging bonus elements that surpass anything from the past. And the transition from cumbersome coins to the now-widespread TITO system? That’s a real game-changer! It’s unlikely anyone in 1998 would have believed that coins would practically disappear from casinos.
A fascinating observation is how innovation within the gaming realm contrasts with, for instance, the broader consumer market. Often, existing technology or captivating experiences from other sectors are adapted and given a unique twist to enhance the excitement of gambling. Our generic version of Bonus Spin Blackjack perfectly illustrates this approach in practice.
The Bonus Spin feature acts as a virtual reward wheel that can be integrated into a Blackjack game. This addition enhances the thrill factor by providing players with opportunities to snag additional rewards when they hit a Blackjack. What’s truly impressive about Bonus Spin is its adaptability, allowing casinos to tailor the prizes on the wheel to cater to specific player demographics.
For instance, envision aiming to draw in a younger, millennial audience. Instead of presenting mundane cash rewards, the wheel could showcase enticing options such as exclusive access at a popular nightclub, tickets to a highly anticipated mixed martial arts event, or even a reserved poolside shelter at a daytime entertainment venue. By strategically adjusting the prizes and their frequency, casinos can ensure they are resonating with their desired clientele.
What truly distinguishes Bonus Spin is its transformative impact on the concept of Blackjack victory. It transcends mere monetary gains, evolving into a pursuit of both financial rewards and remarkable experiences.
The organization responsible for Bonus Spin, AGS, prioritizes its workforce and cultivates a positive company atmosphere. They operate under the principle that a company’s success directly correlates with the well-being of its employees. Consequently, they strive to foster an enjoyable and supportive setting where every individual can reach their full potential. Furthermore, they champion transparent communication and discourage unproductive workplace dynamics.
At AGS, family is paramount. Of course, we provide a competitive compensation and benefits plan, but it goes beyond that. We’re dedicated to fostering a nurturing atmosphere where each person feels appreciated and inspired to develop. We furnish resources to assist our team in prioritizing their health, encompassing mental health assistance and chances for exercise.
To illustrate, our Las Vegas branch recently hosted a midday plank competition, with twelve colleagues testing their endurance for a solid two minutes. It’s these small gestures that cultivate friendship and contribute to a pleasant workplace.
We wholeheartedly believe that supporting our employees is the secret to our achievements. Ultimately, they are the core and spirit of AGS!
The Silver State is a prime location for us currently – we’re contemplating significant expansion there. We’ve dipped our toes in the water with our ICON units and popular titles such as Golden Dragon, Red Dragon, and Fire Wolf. Additionally, our highest-performing slot game, Da Hong (or Big Red, as we like to call it), received Nevada’s stamp of approval back in February. 2016 appears poised for remarkable growth!
On the topic of broadening our horizons, you recently welcomed Drew Pawlak to spearhead your endeavors in Mexico and Latin America. What is the significance of these markets for AGS?
Their importance cannot be overstated. We recognize immense potential for expansion in both areas, and Drew is the ideal candidate to lead the way. Our acquisition of Cadillac Jack has already given us a solid presence in Mexico, but we must continue building upon that triumph. Then there’s the remainder of Latin America – the entire region is undergoing a period of substantial transformation and development, particularly in Brazil. We’re optimistic about the economic rebound of these nations in the coming years, and we aim to be strategically positioned to leverage that growth.
Speaking of which, the industry has witnessed considerable merger and acquisition activity lately, such as Novomatic’s pursuit of Ainsworth. How do you anticipate this impacting AGS, and are you open to pursuing acquisitions yourselves?
We’ve hardly been idle ourselves! Since the beginning of 2014, AGS has participated in approximately 19 acquisitions, swiftly acquiring companies and assets. We’re perpetually seeking promising opportunities, as any astute company should.
In the previous year, we implemented significant changes, such as incorporating Cadillac Jack and RocketPlay, the experts in mobile gaming, into our organization. The industry is experiencing a period of considerable change, some of it essential, some merely imitative. We observe the actions of our competitors, but frankly, it has minimal impact on our strategy. Our priority is developing the highest quality games possible.
Two key principles have guided me throughout my career. The first originated from two gaming pioneers I had the privilege of working alongside, Joe Latti and Tim Parrott. Their mantra was, “Prioritize your players, make them your focus, and profitability will naturally follow.”
The second, while not from a chief executive, holds equal weight: “Every opportunity not seized is an opportunity missed.” Boldness is essential in this field.
What aspect of this industry do I find most appealing? The answer is straightforward: the consequences of your efforts, whether positive or negative, are immediately apparent. Ultimately, our purpose is to provide entertainment.