Throughout the year 2025, the terrestrial gaming industry faced a multifaceted landscape of regulatory challenges, market integration, and shifting consumer expectations regarding the practical aspects of regulated gaming. The persistent rise of gray and skill machines in various U.S. states, coupled with a steady stream of mergers among manufacturers, highlighted both the potential and vulnerabilities that are shaping the industry’s evolution.
In this context, Daron Dorsey, President and CEO of the Association of Gaming Equipment Manufacturers (AGEM), shares insights on advancements towards clearer regulations, the effects of industry consolidation on competition and innovation, and the impending future for gaming suppliers as they gear up for 2026.
This exclusive interview with Yogonet reveals AGEM’s standpoint on fostering a just, regulated marketplace—and the proactive steps the organization is taking to aid its members amidst ongoing industry shifts.
As 2025 comes to a close, have you observed significant progress regarding the need for clearer regulations in land-based gaming, especially in states grappling with the proliferation of gray or skill machines? What major regulatory gaps continue to exist?
Indeed. There’s been a gradual but substantial development through both legal avenues and regulatory measures across numerous jurisdictions. Each discussion or decision surrounding this issue represents a step forward, as the prevalence of such products adversely affects everyone involved in our authorized gaming ecosystem.
As long as all stakeholders adhere to consistent rules and standards concerning what’s permitted and what’s not, competition and opportunities can thrive on an equal basis. This principle lies at the heart of our industry, benefitting our participants and society at large.
2025 saw a heightened activity in mergers and acquisitions among gaming manufacturers, underscoring a trend of consolidation. From AGEM’s perspective, how is this reshaping competition, innovation, and the long-term viability of the land-based equipment industry?
This cycle of consolidation is a naturally occurring facet of our sector’s evolution, as gaming operates on a global scale. It provides avenues for expansion and profitability via organic growth, mergers, and acquisitions for both public and private companies.
In my opinion, this is yet another indicator of our industry’s success and its acceptance by investors, who see gaming suppliers and tech firms as viable platforms for significant capital investment, both short- and long-term. This situation enables sustained innovation investment, driving further competition and establishing enduring sustainability for our sector.
Competitiveness encourages excellence within our industry, whether in product development or talent acquisition, so we interpret this consolidation and investment cycle as another success marker in a market that previously had a limited number of competitors and opportunities.
Looking ahead to 2026, what major opportunities and challenges do you foresee for the land-based gaming supplier community, and how is AGEM preparing to assist its members during this transition?
The opportunities and challenges facing our supplier community are increasingly intertwined with our expectations and aspirations for regulated and authorized gaming in the upcoming years.
A foundational aspect of AGEM’s mission is to support its members in their endeavors to engage in regulated and authorized gaming activities across various formats, as determined by legislative and regulatory bodies. AGEM is committed to maximizing our members’ interests in these policy discussions moving forward.