A Conversation with David Lopez President and CEO of AGS

## A Top Player in the US Gaming Sector

David Lopez, currently at the helm of American Gaming Systems (AGS) as President and CEO, spoke with Casino Journal about his two decades in the gaming sector and offered a peek into the promising future he sees for AGS.

**Casino Journal:** Could you provide a brief overview of your career path in the gaming industry?

**David Lopez:** My foray into gaming began in 1998 when I joined Shuffle Master. I quickly found myself engrossed in the industry, the organization, and its ethos. I dedicated nearly 15 years there, assuming various roles, including interim CEO, Executive Vice President, President of the Americas, Senior Vice President of Product Management, and a seat on the Board of Directors. It was a transformative period that provided a strong basis for my professional trajectory and knowledge bank. Upon joining, the company’s annual revenue was around $27 million. By my departure in 2012, we were nearing $260 million. I take immense pride in having contributed to such remarkable expansion. Following my time at Shuffle Master, I took on the role of CEO at Global Cash Access (now Everi) before arriving at AGS as President and CEO in early 2014.

**Casino Journal:** From your perspective, what are some key ways the industry has evolved over this period?

**David Lopez:** The gaming industry has undergone a monumental shift in the past 20 years. At the outset of my career, the Indian Gaming Regulatory Act (IGRA) was only about a decade old, and the tribal gaming market was still in its nascent stages. We’ve since seen a substantial growth in both tribal and commercial gaming. Today, legalized gambling exists in some form in almost every US state.

The panorama of slot machine creators has transformed significantly. In my early days, IGT reigned supreme, almost a solitary force. Entities like Aristocrat and Konami were just beginning to sprout. Leap through years of development and mergers, and the competitive landscape appears entirely different. Smaller contenders like AGS, Ainsworth, and Incredible Technologies are seizing portions of the market and achieving far greater triumph than a decade prior.

The varieties of games found on casino floors have also undergone a metamorphosis. “Australian-style” games, renowned for their high unpredictability, surged in popularity during the mid-2000s. Technological leaps played a role as well, resulting in games with enhanced visuals, audio, and more engaging bonus elements. And naturally, the transition from physical coins to the now-pervasive TITO system was monumental. I doubt anyone in 1998 would have found it believable that coins would practically disappear from casinos.

AGS presents itself as a forward-thinking organization. What is your current approach to pioneering efforts?
I believe ingenuity within the gaming sector differs from innovation in the wider consumer realm. In gaming, innovation frequently entails taking established technology or interactive encounters from the consumer world and modifying them to enrich the gambling experience. We implemented this with our Bonus Spin Blackjack white label offering.

The Supplementary Whirl is a personalized, digital reward spinner that connects with twenty-one tables at gambling venues. When gamblers succeed at twenty-one, they have the opportunity to rotate the Supplementary Whirl, introducing an additional element of thrill and involvement to the game.

What makes this truly appealing is that gambling establishments can tailor the rewards on the spinner to appeal to specific players.

For instance, to entice a younger, Gen Y demographic, gambling establishments can replace the typical monetary awards and complimentary meal vouchers and present options like premium bottle service, passes to a mixed martial arts event, or even entry to a daytime club’s private lounge. This degree of control over the rewards and the frequency of their alteration enables gambling establishments to promote their brand with great effectiveness.

The Supplementary Whirl transforms the game by broadening the definition of success at twenty-one. It’s no longer solely about the money – players can win both cash and distinctive encounters.

The organization responsible for the Supplementary Whirl, AGS, places significant emphasis on its corporate ethos. They firmly believe that a company’s quality is directly proportional to its workforce, so they diligently strive to cultivate an enjoyable, encouraging, and fulfilling atmosphere where everyone can flourish. They also prioritize open dialogue and clarity.

At AGS, compensation is just the beginning. We’re fostering a close-knit community. We offer mutual support, encouragement, and celebrate accomplishments together. We prioritize mental health resources because a thriving team is a joyful team.

Speaking of thriving, we’re passionate about wellness programs! Last week, our Las Vegas crew enjoyed a two-minute plank competition. It’s all about having a good time while prioritizing self-care.

Our staff is the core and spirit of AGS. They are the driving force behind our triumphs, and we are dedicated to nurturing their development and contentment.

And here’s the exciting part – we’re ready to revolutionize the gaming industry! We have an impressive new slot machine cabinet launching soon that will outshine the competition. Additionally, we’re entering the table game arena with our inaugural baccarat game – a true game-changer! But that’s not all – anticipate a surge of new slot and table games throughout the year, including a unique iteration of our Bonus Spin feature.

We’re pushing limits and innovating, both geographically and in the exceptional products we’re creating. The future is promising at AGS!

The Silver State represents a vital region for our expansion efforts, and we’ve just commenced field tests there featuring our ICON platform and its central offerings, including titles like “Golden Dragon”, “Red Dragon”, and “Fire Wolf”. Our highest-performing offering, “Da Hong” (“Big Red” in English), received approval from Nevada regulatory bodies in February, indicating that 2016 is on track to be a remarkable year.

Recently, you selected Drew Pawlak to oversee your endeavors in Mexico and Latin America. What strategic significance do these particular markets hold for AGS?

This area commands a great deal of our attention. Both markets present substantial prospects for expansion, and we are delighted to have Drew leading our operations in these regions. Our presence in Mexico is already established through the acquisition of Cadillac Jack, yet maintaining and expanding our footprint in the region remains crucial. When we look across Latin America, particularly in Brazil, we see a region undergoing considerable change and growth. We anticipate the economies of these nations to strengthen in the years to come, and we are poised to leverage the growth opportunities that emerge for us in these areas.

What are your thoughts on the recent mergers and acquisitions within the industry, such as Novomatic’s proposed purchase of a 53% share in Ainsworth? How does this affect AGS? Does AGS have an interest in pursuing acquisitions?

Since the start of 2014, AGS has participated in approximately 19 acquisitions, purchasing both assets and companies. As any astute business would, we have been investigating acquisition prospects over the years.

In the previous year, we undertook significant initiatives, such as incorporating Cadillac Jack and RocketPlay, a developer specializing in mobile casino games. Currently, the industry is experiencing a wave of consolidation, with some instances driven by necessity and others perhaps merely mirroring prevailing trends. While we remain attentive to our competitors’ mergers and acquisitions, we refrain from allowing them to dictate our course of action. Our primary emphasis consistently revolves around enhancing our own strategic approach and its implementation. The most valuable counsel I’ve received within this domain? In actuality, there are two key takeaways. Firstly, from Joe Lahti and Tim Parrot, a pair of gaming CEOs I collaborated with: ‘Prioritize customer satisfaction above all else, and profitability will naturally ensue.’ Secondly, a piece of wisdom not necessarily imparted by a CEO, yet equally impactful: ‘Every opportunity not seized is an opportunity squandered.’ What aspect of this industry resonates most with me? Its dynamic nature, the rapid manifestation of your efforts, be it success or failure. Ultimately, our endeavor revolves around entertainment, the pursuit of bringing joy to individuals.