Famous gaming equipment supplier AGS has successfully achieved digital transformation, with its purely digital game studio established in 2022 becoming the core driving force for the growth of the company's interactive division. Originating in 2005, AGS is known in North America for developing Class II and III slot machines and table game progressive jackpots, and in recent years has expanded to seven physical studios and established a digital-specific team through substantial investment in R&D. In 2024, the company's interactive business grew by 86% year-over-year, currently boasting over 80 internally developed games and a library of over 1000 games. The digital studio operates entirely remotely, with teams distributed globally, focusing on porting physical content to digital platforms and developing native online games. Zoe Ebling, Vice President of AGS Interactive, points out three major challenges in the transformation: adapting to the rapidly digitalizing landscape, dealing with the evolution of online regulation, and handling increasingly fierce competition, which the company has successfully addressed through agile development, regulatory experience, and scale advantages.
Company Background and Physical Foundations
AGS's history dates back to 2005, as a well-known supplier of tribal gaming equipment in North America, renowned for developing Class II and III slot machines and table game progressive jackpot systems. The success of its physical business has made AGS an industry giant, laying a solid foundation for its digital transformation.
Over the past five years, the company has accelerated business development through continuous R&D investment, expanding its physical business to seven studios while also venturing into the digital realm.
Digital Transformation and Interactive Growth
Facing the significant growth of iGaming in the global market (with online gambling accounting for 30% of US commercial gambling revenue in 2024 and 60% of UK remote gambling), AGS has developed its interactive division into one of the three core businesses. This division maintains the company's fastest growth rate, with a year-over-year increase of 86% in 2024 and a simultaneous increase in profit margins.
Vice President Zoe Ebling states that based on the long history of physical gambling, the company early on recognized the critical importance of a strong online presence for future success.
Establishment and Operation of the Digital Studio
In 2022, AGS established a purely digital game studio, focusing on porting mature physical content to digital platforms and developing native online games. The studio operates entirely remotely, with small to medium-sized teams distributed globally, emphasizing agile development and rapid iteration.
AGS currently has over 80 internally developed games, supplemented by a large game library supported by its own remote game server.
Strategic Initiatives and Acquisition Layout
In 2018, AGS strategically acquired the UK game aggregation platform Gameiom, providing a foothold in the online market, especially in Europe. This move was driven by the leadership team led by CEO David Lopez, based on a forward-looking judgment of the potential of digital channels.
The acquisition has helped AGS establish digital capabilities and integrate resources to support subsequent studio establishment and business expansion.
Challenges Faced and Response Strategies
Ebling points out that the transformation from physical to digital faces three major challenges: adapting to the rapidly changing digital landscape, dealing with the evolution of online regulation, and handling more intense competition. The company maintains a balance between quality and speed by streamlining the development process and adopting an agile framework.
Decades of physical experience and strong licensing frameworks help the company manage the complexity of online regulation; scale advantages and operator relationships maintain its competitive market position.
Success Stories and Market Recognition
AGS and Caesars Entertainment have launched "Rakin' Bacon Odyssey" across all channels in New Jersey, demonstrating the strategy of bringing high-performance content across platforms to players. The company has received multiple industry recognitions: first place in the Eilers & Krejcik Gaming US Game Performance Leaderboard, and the North American SBC Awards "Casino Rising Star" gold award.
In 2025, the team won the EKG "Best Performing New Online Slot Game" gold award with its first online game "3X Ultra Diamond", confirming its digital development capabilities.
Future Trends and AI Applications
Artificial intelligence has become a key trend shaping the future of the studio, with AI tools accelerating game production, iteration speed, and providing player behavior insights to guide design. AI is integrated into quality assurance scripts and testing, enhancing game perfection and accuracy.
The company balances AI efficiency advantages with strict supervision to ensure creativity and game safety, avoiding vulnerabilities and security risks.
Localization and Cultural Adaptation
As regulatory changes open up new markets, localization has shifted from "optional" to "necessary". Localization goes beyond text translation, including adjusting game mechanics, branding, and promotional strategies according to cultural differences.
AGS leverages its physical background and IP advantages to bring games to new audiences, providing highly customized experiences and cooperating with operators to meet specific market needs.
Core Advantages and Differentiated Competition
The physical foundation provides a unique advantage for digital transformation: physical games are rigorously tested in real environments, ensuring only high-quality experiences are implemented; licensing, compliance, and financial management expertise simplify the expansion into the digital realm.
Deep industry relationships and player insights continue to guide development directions, allowing AGS to maintain differentiation among purely digital competitors.
Continuous Innovation and Industry Outlook
The vitality and rapid development of the iGaming industry demand continuous innovation, not complacency. AGS's digital studio continues to focus on optimization and efficiency, going beyond simply porting physical games, and insists on designing digital games from scratch.
The company's commitment to innovation and quality is reflected in industry praise and continuous growth, with interactive entertainment becoming an important part of the business.
