“AGS vision has always been to be a major player in Brazil when it opens”

GMB - Approaching G2E event, what can you tell us about what the company will present at the Las Vegas exhibition?
David Lopez - The last two years have been extremely transformative for us. We successfully established AGS as a diversified gaming supplier and solidified our brand identity. We now offer a full line of slot products, table products, social casino products, and now video-bingo products. 

Last year we introduced our award-winning Orion slot cabinet, which had tremendous momentum right out of the gate. To date, we have installed nearly 1,000 units since its official launch in May. This year at G2E 2017, we will showcase a new addition to our Orion family of slot cabinets and new unique game content, including a number of new progressive solutions like Xtreme Jackpots. In addition, we will showcase our full line-up of table game products, including Dex-S, which is a revolutionary single-deck card shuffler, as well as our award-winning Bonus Spin table game progressive solution. Our interactive team will be demonstrating how AGS can private label our social casino platform and provide operators a fully customized social casino in record time.  

For our international customers, we’re introducing our new Alora cabinet and our initial library of video-bingo games. Alora was designed in Brazil by Brazilians, and with so much potential in major video-bingo markets like Mexico, the Philippines, and Brazil (once legalized), we’re confident the rollout will be well received.

What are the main features and strengths of the line of video-bingo machines that AGS will showcase in Las Vegas?
AGS began development of its video-bingo product line more than 18 months ago. Our vision is, and has always been, to be a major player in Brazil when, and if, it opens. We brought onboard a group of Brazilian developers with decades of experience in game design, operations, and market intelligence. This team, led by Marcus Fortunato, has established a foundation that enables AGS to manufacture and develop both hardware and software in Brazil. This means that our products will be based on Brazilian DNA and feature some of the best technology from America.

With the Brazil market potentially on the precipice of opening, AGS will be ready on day one. 

The development of our video-bingo library began with studying video-bingo players throughout Central America and Asia, including the preferences of Brazilian players during the most recent period of legalization. Many international companies have had limited success bringing products into new markets like Brazil because they don’t tailor the gaming experience to meet the desires of the players in the new market. We’ve done our homework and understand what these players desire and have created games that appeal to them. Video-bingo is not popular in the U.S., and therefore it’s foreign to most companies that were not part of the video-bingo markets. Our video-bingo product line is built around player preferences for this specific market and modernized with state of the art graphics, sound, and hardware to support the technology available today.

In what markets, do you think the video-bingo machines line will have better reception? What markets do they target?
AGS, through its acquisition of Cadillac Jack in 2015, is a major player in Mexico. This is the market that all the major video-bingo suppliers entered when Brazil closed in 2004. Today Mexico is still one of the largest video-bingo markets in the world. Our very experienced team in Mexico is ready to introduce the Alora product line in the country as well. We are currently experiencing growth in Mexico and hold approximately 14% market share of the spinning-reel segment there. We plan to enter the video-bingo segment early next year. 

What is your vision of the global gaming industry in terms of new trends and emerging markets? How do you evaluate the industry's present time?
Recently, manufacturers have had a renewed focus on hardware. AGS is a part of this trend as well, with the launch of our award-winning Orion slot cabinet and Bonus Spin table game progressive solution. But at the end of the day, the game itself is the most critical, and our R&D teams on both sides are literally obsessed with offering the best games in the world. We expect the hardware race to continue going forward.

For AGS, there is still much room for growth and expansion. Emerging markets are important for our company but in a different way than more mature manufacturers. We still have growth opportunities in U.S. markets, let alone existing international markets, but Brazil is very different for us – it’s a market AGS has fully prepared for, has invested in, and is patiently waiting to open. We know that the Brazil market will be massive because culturally Brazilians love gaming and historically gaming has been proven there. We believe it will be successful like it has been in the recent past.    

AGS has a close relationship with the Brazilian market and this time the country really seems to be getting closer to legalize the activity. Do you agree with this vision? Have you been following the progress of gaming legalization in Brazil? What expectations do you have about it? What prospects do you see in the future once the market is regulated?
When AGS decided to prepare for Brazil, we did not approach the project as just another market. Instead, we approached it with an understanding that Brazil is one of the last untapped gaming frontiers of the world with huge populations. Our vision was to establish a team in the U.S. and Brazil with proven experience and knowledge of the market, people, habits, and culture. This approach has enabled AGS to objectively monitor political movements, evaluate rumors, and forecast timelines, not as an outsider but as a Brazilian business owner would. Today, we can state that we know that Brazil is the land between the "Oiapoque ao Chui.” We believe that between those two points of reference there is a vast land with different cultures and customs within the country. We understand regional differences; we respect local operators and their recent past, and we’re confident we will be ready, with not only great products and service, but also with solid relationships. Most importantly, we truly believe the future is very near.

Gaming will not be new to Brazil. You have had casinos in the past, bingo in the recent past, and it’s no secret that gaming is a multi billion-dollar business in the country today. What will be different is that the proposed legislation will finally be regulated and create benefits to the people through taxation and jobs. The government will have legal mechanisms to control the industry and ensure fairness to the players. In addition to tax benefits to the country, the legalization of gaming will create compliance structures that will enable both domestic and foreign investment in the country beyond any forecast already publicized. 

In the past 12 months, the country has been occupied by scandals and political turmoil that has certainly slowed a process that was in full momentum before. As stability is re-established, Brazil must capitalize on this moment of opportunity. The future can and should be decided now.

What balance can you make of what was so far this 2017 and how do you plan the closing of the year?
AGS has had several phenomenal growth years in a row. All 550 plus employees are obsessed with not just the game, but with engaging our clients, providing amazing content for our players, and ensuring their experience with AGS products are memorable. We have a great leadership team that has all bought into this vision. We empower each other, we trust our teams, and we have immense pride in the products and company we are building.

Source: Exclusive GMB