"We’d like to see more regulatory clarity around land-based gaming, especially where gray machines have proliferated"

At this year’s G2E Las Vegas, the Association of Gaming Equipment Manufacturers (AGEM) played a pivotal role in spotlighting the supplier side of the global gaming ecosystem. From supporting new show features such as the inaugural G2E Dealer Championship to facilitating engagement between regulators and suppliers, the association focused on collaboration, innovation, and advocacy for a sustainable, well-regulated market.

In conversation with Yogonet, AGEM President and CEO Daron Dorsey reflected on the industry’s most pressing issues, from unregulated gaming and legislative gaps to the economic influence of technology suppliers and the growing wave of mergers and acquisitions shaping the manufacturing landscape.

What were your impressions of the show this year? What were some of the main goals for the association at G2E?

There was great energy. The days went by really fast, which is always a good sign. A couple of new features stood out, like the Dealer Championship, which brought a fresh element of excitement to the event. For us at AGEM, the main goal was continued engagement with the industry and our stakeholders.

We hosted a group of regulators to help them learn more about the supplier side of the industry. That’s exciting for us because when regulators think about gaming, they often focus on operators, but it’s equally important that they understand the supplier community.

Beyond that, it was a great chance to connect and discuss key industry issues. I also thought the conference content was excellent this year. Topics like tariffs, trade policy, and new federal changes are hugely relevant.

The Dealer Championship was one of the most talked-about new features, and AGEM supported it. How does this event help highlight the vitality of the land-based gaming sector?

It’s fantastic to see people who are true professionals at their craft, using products developed by AGEM members, showcased in that kind of competition. Even though it’s not a casino floor, it shows the skill and passion behind live gaming.

It also brings positive energy to the trade show itself. These competitions are exciting to watch, especially when you get to the finals. The format has been done in Europe for years, but this was the first time we’ve had it here at G2E, and it was great to see the level of enthusiasm. It’s a fun, interactive addition that celebrates both people and products.

You mentioned earlier that unregulated gaming was a major topic at the show. Modalities such as prediction platforms, sweepstakes, and gray machines were discussed at the event. What’s AGEM’s stance on this issue?

AGEM has always supported the regulated, authorized gaming community, the one that provides jobs, economic development, tax revenue, and operates responsibly. When unregulated or unauthorized operators enter the space and don’t play by the same rules, that’s a problem for everyone.

This issue keeps growing rather than diminishing. What we want to do as an association is to communicate that these problems need solutions, be it through legislation, regulatory clarity, or enforcement. If something isn’t authorized, it shouldn’t be operating. Unregulated activity doesn’t benefit the public, the state, or the legitimate gaming industry.

Are there particular legislative changes you’d like to see?

We’d like to see more clarity around the land-based environment, especially in states where gray or skill machines have proliferated. Legislation should authorize that type of activity properly and make sure everyone operates under the same framework: licensed by gaming control boards, reporting data regularly, paying taxes, and following compliance rules.

That creates a level playing field and ensures customers get games that are fair, reliable, and secure. A lot of these gray areas exist because of gaps in legislative language, so we’d like to see lawmakers close those gaps. Even though it’s difficult in today’s polarized political environment, this should be a unifying issue.

Earlier this year, AGEM released an updated economic impact study. What did the report reveal about the sector’s significance?

It underscored that gaming suppliers are a technology-driven industry with enormous economic impact: tens of billions globally and in local markets through jobs, development, and innovation. These companies produce the products that drive operator revenues, both online and land-based.

What’s often overlooked is the scale of the ecosystem, from major slot manufacturers to smaller component suppliers, software developers, power and touchscreen producers, and beyond. It’s a large, interconnected network that supports a significant number of jobs and communities worldwide.

There have been some notable M&A developments recently, like the IGT-Everi merger. What’s your take on these changes in the manufacturing sector?

We’re seeing a wave of consolidation, and part of that comes from the growing interest of private equity investors. It’s actually an encouraging sign: it means gaming manufacturing is viewed as an appealing and stable investment sector.

Periods of M&A are part of the industry’s natural cycle. Sometimes it’s consolidation; other times it’s expansion and diversification. Right now, it’s globalized and competitive, and mergers can help companies reach more customers, pool capital, and streamline operations. It reflects a healthy and evolving sector that continues to attract new investment and ideas.