The gaming industry has undergone a profound transformation over the past few decades, and few are better positioned to reflect on this evolution than Ian Hughes, the Chief Commercial Officer of Gaming Laboratories International (GLI) and CEO of GLI Australia. As GLI marks its 35th anniversary globally and GLI Australia celebrates its 30th anniversary, Hughes, a cornerstone of the company’s success, provides an insider’s perspective on the industry’s remarkable journey. With events like the Australasian Gaming Expo in Sydney and G2E in Las Vegas on the horizon, this milestone year offers a perfect opportunity to reminisce about the past, appreciate the present, and anticipate the future.
Early Days and Humble Beginnings
When Hughes joined GLI Australia as its third employee in 1994, the company was just beginning to establish its footprint. Back then, GLI Australia operated from a modest office on the campus of a local university in Adelaide, South Australia. The global gaming industry was in its infancy, with many jurisdictions just starting to open up. Adelaide, surprisingly, was one of the first locations outside of the US to host a GLI office, a testament to the city’s early and pivotal role in the industry’s development.
The initial focus of GLI Australia was on providing technical standards for the South Australian government, with just three engineers working diligently from their university-based office. This period saw the Australian casino market starting to grow, with notable developments such as the authorization of poker machines at the Adelaide casino, now known as SkyCity Adelaide. This local activity was part of a broader wave of global expansion that GLI was instrumental in facilitating.
Pioneering Technological Advancements
The mid-1990s were a transformative period for the gaming industry, particularly with the advent of video slot machines. Unlike the traditional mechanical reel or stepper slots prevalent in the US at the time, Australia was experiencing a surge in the popularity of video slot machines, largely thanks to Aristocrat, a local gaming machine supplier. Hughes reminisces about the challenges of testing these new machines for the US market, highlighting the lack of standardized terminology and the innovative concepts introduced in Australia.
Terms like “handle” (coin-in) and “tokenization” were novel at the time and required extensive adaptation for international markets. Hughes recalls the excitement of seeing Australian-style games being advertised in US casinos, such as Black Hawk Casino in Colorado, as a means to attract players with a new gaming experience. This period marked the beginning of a significant shift in the industry, as Australian innovations started influencing global gaming standards.
From Laggard to Leader: The Evolution of Gaming Technology
In the early days, the gaming industry lagged behind consumer electronics in terms of technology. Suppliers were often limited by the available processing power, leading to frequent issues during testing. However, Hughes observes that the industry has dramatically evolved, catching up with and even leading in many technological areas.
The integration of off-the-shelf operating systems like Microsoft Windows and Unix into gaming machines revolutionized the industry. It reduced the barriers to entry for new game developers, enabling them to focus on creating content, graphics, and sound without needing to build their own operating systems or random number generators. This shift has led to a proliferation of new suppliers and a more dynamic and competitive market.
The Rise of Cybersecurity and AI
As technology has advanced, so too has the regulatory landscape. Today’s regulators focus on a broader range of issues, including anti-money laundering controls and responsible gaming practices. GLI has adapted to these changes, expanding its services to include cybersecurity and artificial intelligence through its acquisition of Bulletproof in 2016.
Hughes emphasizes that while GLI embraces new technologies and innovations, it remains committed to its core mission of providing high-quality testing services. The company continues to prioritize timely and cost-effective product testing, ensuring that manufacturers can bring their products to market efficiently while maintaining high standards of reliability and safety.
GLI’s Global Presence and Local Impact
Over the past 35 years, GLI has grown from a small office in Adelaide to a global enterprise with 1,800 staff across 35 jurisdictions. Despite this growth, Hughes highlights that GLI Australia’s headquarters have remained in Adelaide, a city he describes as a “well-kept secret” in terms of its livability and role in the company’s success.
GLI Australia has expanded its presence to Sydney and Melbourne, addressing specific market needs in those locations, while maintaining a strong base in Adelaide. The city continues to host two tech centers that are integral to GLI’s operations, reflecting the importance of local expertise in the company’s global success.
Ian Hughes’s reflections on GLI’s journey over the past three decades provide a compelling narrative of growth, innovation, and adaptation. From the early days in Adelaide to becoming a global leader in gaming testing and certification, GLI’s story is one of continuous evolution and commitment to excellence.