Pulse

The Future of AGEM

By William - 7 June 2022

Ahead of moderating a fireside chat with the CEO’s of the AGA and the CGA at the 2022 International Gaming Summit, G3 took the opportunity to sit down with Daron Dorsey, Executive Director of the Association of Gaming Equipment Manufacturers to discover his views on the topics to be discussed.

Daron, who previously served as Senior Vice President, General Counsel & Group Compliance Officer at Ainsworth Game Technology and has been an Officer and General Counsel of AGEM since 2016, explains what he wants to glean from the leaders who help shape public policy and perception about gaming in all its forms.

Detailing his vision for the association’s future after replacing Marcus Prater who had held the role since 2008, Daron addresses whether AGEM is looking to integrate sports betting and online companies into its membership and, ultimately, how the association evolves with a shifting US gaming landscape.

Casting an eye over the opportunities and challenges facing the supplier sector in a post- Covid landscape, Daron commends the resilience shown by AGEM’s membership and expresses concern about the proliferation of unregulated gaming, before rounding off with a discussion about whether AGEM’s membership plans on returning en masse to ICE London 2023.

As moderator, what do you want to prise from the CEO Roundtable at IAGA? What message do you want to get across to the audience?

IAGA is a gathering of important gaming executives, advisors and regulators, so having the CEOs of the leading trade associations in North America together for that discussion is a great opportunity to hear from them. My priority is allowing the panellists to discuss their core priorities as each brings a different perspective to the table.

As leaders, I want them to communicate their experiences of the last 18-24 months to the audience at IAGA, where they see themselves and their membership bases in the growth of their gaming markets, and where they’re going in next couple of years coming out of Covid-19.

Another message I’d like to get across concerns the common issues affecting commercial gaming markets regardless of geographic location. Whether you are in the U.S., Canada, or tribal markets, there are themes and trends that apply to everyone – this could be concerning jobs, economic impact, social responsibility, and regulated gaming’s place in society.

Each one of the leaders of the trading organisations can convey how gaming is an economic driver and part of the fabric of their communities, both now and in the years to come, where each of them is trying to go with their membership base over the next couple of years and what their main priorities are.

It’s been a couple of months since you replaced Marcus Prater. What drove your interest in the role and how have you found the hot seat?

I was an officer in this trade association for many years through my position as an executive at Ainsworth Game Technology. My interest in the role derives from my belief in the good of the supplier sector, what it means to the gaming industry as a whole and the positive story it has to tell over the coming years.

I want to continue to shine a light on the technology and supplier sector for the things it does, has been doing and will continue to do in the regulated gaming space.

I’m excited to discuss issues such as those being covered by the roundtable. Regulated gaming is in so many geographic locales, regions, and smaller markets, so I think it is important to talk about its role in the communities where it resides. That includes not just operators and gaming operations, but the supplier side too.

I’ve always enjoyed advocating and trying to tell that story in my role as an officer and as an executive at gaming suppliers for many years, and that’s what I want to do for the years to come as AGEM’s Executive Director.

In regards to how I find the seat, it has been great. Marcus worked on behalf of AGEM for more than a decade and our entire supplier sector benefited greatly from all he did during his long tenure as the Executive Director.

Just 15 years ago, AGEM was a handful of companies and now comprises hundreds of companies from around the world from large, public gaming manufacturers to mid-level suppliers and newcomers to the regulated gaming space.

Managing a lot of different views from members in various locations around the globe while AGEM grew exponentially was a tall order and we have Marcus to thank for a lot of that.

My job is to pick up the ball and keep taking it down the field to build on all the ideas, concepts, and issues to continue telling the story of what the supplier sector is doing. I’ve found that to be an exciting opportunity after going from working within a large organisation to this new role.

I’m a lawyer by training, be that as a legal executive at gaming companies and private practice in law firms before that. In most situations, my role involved a specific client and a single issue to advocate for, whether that be in a negotiation in a commercial setting, engaged in disputes and litigation or representing a client before a regulatory body.

I now get to advocate on behalf of an entire industry sector, so it’s no longer a zero-sum outcome from those efforts. Our member companies are doing things that benefit the industry every single day and I now get to convey that message and tell those stories.

With sports betting and online gaming hitting new heights as U.S. state legislation opens, is AGEM looking to integrate sports betting and online gaming companies into its membership?

Yes. Many of our members are already in or entering that space. There are also companies from outside the US in markets where regulated sports betting and online gaming are more mature who are interested in coming to the US and Canadian spaces. As those new markets evolve, AGEM wants to be a resource for those suppliers.

AGEM and AGEM members have a lot of experience and exposure to the layered nature of the U.S. and Canadian market where you see different local and jurisdiction-specific approaches from a legal, regulatory, and technical perspective instead of the more homogeneous approach that may exist in other markets.

AGEM wants to be a pathway and educational resource for those companies looking to the North America markets as they continue to evolve and these regulated gaming opportunities benefit our entire sector.

Do you have to be a manufacturer to be a member of AGEM? Ultimately, how do you represent everybody?

The framework within our bylaws is that a company be a licensed, regulated gaming equipment manufacturer or equivalent to be a voting member/board of director member of AGEM.

We also have over 100 associate members who are suppliers to suppliers, providers of niche components related to the gaming supplier ecosystem, payment providers, peripheral technology companies, law firms, accounting firms, banks and financial institutions and media/communication companies like G3, all of whom are key constituents of the regulated gaming space.

We all care and benefit from the growth of regulated gaming. AGEM wants to be a place where people can learn, communicate, and continue supporting the progress and growth of the supplier sector for decades to come.

We can do that by communicating about common issues that affect everyone, such as the scourge of unregulated gaming that continues to proliferate in many markets and inflicting damage on the public and all stakeholders in the regulated gaming space.

We also want to inform those around us about the good deeds and benefits which result from the hundreds of thousands of dedicated employees in their respective communities and tens of billions of dollars of economic impact this industry sector provides. That impact is enormous and can continue being an agent of good as the gaming supplier sector continues to mature and grow.

AGEM can also be an education and advocacy resource within the regulated gaming environment on items such as technical standards, social responsibility, integrity, public policy and other issues that its members want to advocate for within the regulated gaming industry.

AGEM members are compliance- driven organisations who operate in hundreds of regulated gaming jurisdictions around the globe, so finding ways to communicate with stakeholders on behalf of the entire sector is something our association wishes to do whenever the opportunity arises.

How would you describe the current supplier landscape? As casino operations in the U.S. take off again, is this paying off in the supplier industry?

It’s a landscape with plenty of opportunity. Suppliers have weathered the storm caused by the pandemic and, by doing so, given themselves the opportunity to continue supplying products and innovations to take advantage of those opportunities. Of course, the supplier sector continues to face ongoing challenges in the current environment.

It takes many months, if not years, to create, develop and get a product out into the market, so when you have to forecast and plan so far into the future from a technology and R&D perspective, supply chain issues and disruptions are amplified.

Looking ahead, you would need a crystal ball to predict whether there is some plateauing or stillness in the waters, so to speak, in the continued recovery of the U.S. casino industry, but AGEM’s member companies are poised to deliver and supply the products, equipment and services that U.S. casino sector requires.

What are AGEM’s priorities over the next 12 months as we come out of the pandemic?

AGEM wants to continue as an advocate and voice to benefit regulated gaming and its supplier sector across all core markets. An ongoing issue that confronts all of us are the continued operation of unregulated gaming machines, so AGEM wants to stand alongside the AGA however we possible to promote and defend those in involved in authorised, regulated gaming and continue shining a light on the harms caused by unregulated, illegal gaming when it is allowed to proliferate.

In addition, AGEM hopes to find ways to assist the industry on any efforts to update regulations, technical standards, or processes. For example, AGEM filed a petition in 2021 with the Nevada Gaming Control Board for implementation of cloud computing rules since that technology has become relevant to today’s gaming environment.

Through that process, AGEM collaborated with NGCB staff/stakeholders and were able to garner consensus from the industry and regulatory authority on draft provisions that were supported by the Nevada Gaming Control Board, adopted by the Nevada Gaming Commission and put into immediate effect in late April.

That is the kind of opportunity AGEM wants to capitalise on behalf of the sector we represent both now and in the future.

Looking at the trade show circuit, let’s reflect on ICE London. What has been the feedback you’ve received from this year’s show and, looking ahead to 2023, does AGEM’s membership plan on returning en masse?

AGEM’s Director of Europe, Tracy Cohen, and AGEM’s current President, David Lucchese, were present at the ICE 2022 show last month in London. While I didn’t get a chance to be there with another key trade show in the U.S. the following week, on a personal level, I look forward to being at ICE 2023.

With the pandemic upending the notion of planning travel months or years in advance, I completely sympathise and empathise with those that have been trying to put together international events which require sophisticated planning and logistics.

The ICE 2022 team deserves a pat on the back for putting together this year’s show which, based on the feedback and comments of those who attended, was well-attended, exceeded expectations and was an overall successful event that is well-positioned for a great 2023 show.

ICE is an important trade show for the global gaming industry. As a forum for members who exhibit, send teams and fully participate in the show, the feedback amongst various members has been positive with numerous members already noting their plans to fully return for 2023.