Company Reports

Light & Wonder has significantly simplified its business by divesting noncore lottery and sports betting assets. It is now a more focused entity, cut in much the same image as dominant competitor Aristocrat, with operations across the social casino space, i-gaming, and electronic gaming machines. Most of Light & Wonder's revenue is derived from electronic gaming machines. Within this segment, revenue comes both from leased machines, which attract a fee per day or a percentage of the wagered amount, and outright sales. To maintain share over the long run in the fiercely competitive EGM market, manufacturers need to consistently deliver new, high-quality games that keep consumers engaged and maximize revenue for gaming venues. This requires continuous spending on research and development. Relative to Aristocrat, Light & Wonder spends a lower percentage of revenue on R&D. As a result, we expect it will be difficult to capture a material, maintainable incremental share in the EGM market. But we do not expect Light & Wonder to cede share to smaller players either, as its R&D spending is multiples of most of its smaller competitors.

Light & Wonder's first-quarter 2026 underlying EBITDA lifted 9% on last year to USD 383 million. Gaming machines and i-gaming were again the standouts, with double-digit EBITDA growth. This was offset by a 3% EBITDA decline in SciPlay, symptomatic of a broader social casino decline.

Shares in Aristocrat and Light & Wonder have sold off amid fears of disruption at the hands of artificial intelligence. We view the market concerns as twofold: AI will lower the barrier to entry, producing new competitors, and strengthen weaker incumbent competition.

Light & Wonder has significantly simplified its business by divesting noncore lottery and sports betting assets. It is now a more focused entity, cut in much the same image as dominant competitor Aristocrat, with operations across the social casino space, iGaming, and electronic gaming machines. Most of Light & Wonder's revenue is derived from electronic gaming machines. Within this segment, revenue comes both from leased machines, which attract a fee per day or a percentage of the wagered amount, and outright sales. To maintain share over the long run in the fiercely competitive EGM market, manufacturers need to consistently deliver new, high-quality games that keep consumers engaged and maximize revenue for gaming venues. This requires continuous spending on research and development. Relative to Aristocrat, Light & Wonder spends a lower percentage of revenue on R&D. As a result, we expect it will be difficult to capture a material, maintainable share in the EGM market. But we do not expect Light & Wonder to cede share to smaller players either, as its R&D spending is multiples of most of its smaller competitors.

Light & Wonder's first-quarter 2026 underlying EBITDA increased 5% to USD 327 million despite 25% lower gaming machine sales and continued headwinds in social casino. The Grover acquisition, completed only in the second quarter of 2025, accounted for the bulk of the increase. Shares fell 8%.

Light & Wonder has significantly simplified its business by divesting noncore lottery and sports betting assets. It is now a more focused entity, cut in much the same image as dominant competitor Aristocrat, with operations across the social casino space, iGaming, and electronic gaming machines. Most of Light & Wonder's revenue is derived from electronic gaming machines. Within this segment, revenue comes both from leased machines, which attract a fee per day or a percentage of the wagered amount, and outright sales. To maintain share over the long run in the fiercely competitive EGM market, manufacturers need to consistently deliver new, high-quality games that keep consumers engaged and maximize revenue for gaming venues. This requires continuous spending on research and development. Relative to Aristocrat, Light & Wonder spends a lower percentage of revenue on R&D. As a result, we expect it will be difficult to capture a material, maintainable share in the EGM market. But we do not expect Light & Wonder to cede share to smaller players either, as its R&D spending is multiples of most of its smaller competitors.

Light & Wonder's 2025 underlying EBITDA increased 16% to USD 1.4 billion. The result was driven by 4% revenue growth, mostly in gaming machines, and margin expansion across all businesses. Consolidated EBITDA margins were 44%, from 39% last year.

Light & Wonder has agreed to pay Aristocrat USD 128 million relating to litigation around its Dragon Train and Jewel of the Dragon games. Light & Wonder shares rose about 18%, while Aristocrat shares were flat.

Light & Wonder has significantly simplified its business by divesting noncore lottery and sports betting assets. It is now a more focused entity, cut in much the same image as dominant competitor Aristocrat, with operations across the social casino space, iGaming, and electronic gaming machines. The majority of Light & Wonder's revenue is derived from electronic gaming machines. Within this segment, revenue comes both from leased machines, which attract a fee per day or a percentage of the wagered amount, and outright sales. To maintain share over the long run in the fiercely competitive EGM market, manufacturers need to consistently deliver new, high-quality games that keep consumers engaged and maximize revenue for gaming venues. This requires continuous spending on research and development. Relative to Aristocrat, Light & Wonder spends a lower percentage of revenue on R&D. As a result, we expect it will be difficult to capture a material, maintainable share in the EGM market. But we do not expect Light & Wonder to cede share to smaller players either, as its R&D spending is multiples of most of its smaller competitors.

Light & Wonder released third-quarter fiscal 2025 earnings. Underlying EBITDA of USD 375 million was 18% higher than last year on the back of margin expansion across all segments and the first full quarter of earnings from the Grover acquisition.

Light & Wonder has significantly simplified its business by divesting noncore lottery and sports betting assets. It is now a more focused entity, cut in much the same image as dominant competitor Aristocrat, with operations across the social casino space, iGaming, and electronic gaming machines. The majority of Light & Wonder's revenue is derived from land-based gaming. Within this segment, revenue comes both from leased machines, which attract a fee per day or a percentage of the wagered amount, and outright sales. To maintain share over the long run in the fiercely competitive EGM market, manufacturers need to consistently deliver new, high-quality games that keep consumers engaged and maximize revenue for gaming venues. This requires continuous spending on research and development. Relative to Aristocrat, Light & Wonder spends a lower percentage of revenue on R&D. As a result, we expect it will be difficult to capture a material, maintainable share in the EGM market. But we do not expect Light & Wonder to cede share to smaller players either, as its R&D spending is multiples of most of its smaller competitors.

Light & Wonder's second-quarter EBITDA lifted to USD 352 million, 7% higher than last year. Driven by stronger margins amid a 1% decline in revenue. The firm provided full-year 2025 EBITDA guidance, now including the recent Grover Gaming acquisition, of USD 1.43 billion to USD 1.47 billion.

Light & Wonder reported first-quarter 2025 underlying EBITDA of USD 311 million, up 11% on last year. Revenue lifted 2% year on year, and EBITDA margins expanded by about 3%. Earnings grew across all segments, most notably in the core gaming business, which lifted EBITDA 9% to USD 254 million.

Light & Wonder has significantly simplified its business by divesting noncore lottery and sports betting assets. It is now a more focused entity, cut in much the same image as dominant competitor Aristocrat, with operations across the social casino space, iGaming, and electronic gaming machines. The majority of Light & Wonder's revenue is derived from land-based gaming. Within this segment, revenue comes both from leased machines, which attract a fee per day or a percentage of the wagered amount, and outright sales. To maintain share over the long run in the fiercely competitive EGM market, manufacturers need to consistently deliver new, high-quality games that keep consumers engaged and maximize revenue for gaming venues. This requires continuous spending on research and development. Relative to Aristocrat, Light & Wonder spends a lower percentage of revenue on R&D. As a result, we expect it will be difficult to capture a material, maintainable share in the EGM market. But we do not expect Light & Wonder to cede share to smaller players either, as its R&D spending is multiples of most of its smaller competitors.

With tariff rates raised to levels not seen in a century, US President Donald Trump's "liberation day" has rattled global markets. Higher tariffs will likely set in motion a cascade of supply-demand side shocks, all acting to weigh on the rate of economic growth.

Light & Wonder's 2024 underlying EBITDA lifted 11% to USD 1.2 billion. Electronic gaming machines remain the vast majority of earnings. Gaming growth was driven by a 22% increase in gaming machine sales and a 9% increase in the installed base of leased machines in North America.

Light & Wonder has significantly simplified its business by divesting noncore lottery and sports betting assets. It is now a more focused entity, cut in much the same image as dominant competitor Aristocrat, with operations across the social casino space, iGaming, and electronic gaming machines. The majority of Light & Wonder's revenue is derived from land-based gaming. Within this segment, revenue comes both from leased machines, which attract a fee-per-day or percentage of wagered amount, and outright sales. To maintain share over the long run in the fiercely competitive EGM market, manufacturers need to consistently deliver new, high-quality games that keep consumers engaged and maximize revenue for gaming venues. This requires continuous spending on research and development. Relative to Aristocrat, Light & Wonder spends a lower percentage of revenue on R&D. As a result, we expect it will be difficult to capture material, maintainable share in the EGM market. But we do not expect Light & Wonder to cede share to smaller players either, as its R&D spending is multiples of most of its smaller competitors.

Light & Wonder has agreed to acquire the charitable gaming assets of Grover Gaming for a cash consideration of up to USD 1.05 billion. Grover provides electronic pull tabs to charitable organizations in five US states, for venues like bingo facilities, social clubs, and bars.

Light & Wonder has significantly simplified its business by divesting noncore lottery and sports betting assets. It is now a more focused entity, cut in much the same image as dominant competitor Aristocrat, with operations across the social casino space, iGaming, and electronic gaming machines. The majority of Light & Wonder's revenue is derived from land-based gaming. Within this segment, revenue comes both from leased machines, which attract a fee-per-day or percentage of wagered amount, and outright sales. To maintain share over the long run in the fiercely competitive EGM market, manufacturers need to consistently deliver new, high-quality games that keep consumers engaged and maximize revenue for gaming venues. This requires continuous spending on research and development. Relative to Aristocrat, Light & Wonder spends a lower percentage of revenue on R&D. As a result, we expect it will be difficult to capture material, maintainable share in the EGM market. But we do not expect Light & Wonder to cede share to smaller players either, as its R&D spending is multiples of most of its smaller competitors.

Light & Wonder has significantly simplified its business by divesting noncore lottery and sports betting assets. It is now a more focused entity, cut in much the same image as dominant competitor Aristocrat, with operations across the social casino space, iGaming, and electronic gaming machines. The majority of Light & Wonder's revenue is derived from land-based gaming. Within this segment, revenue comes both from leased machines, which attract a fee-per-day or percentage of wagered amount, and outright sales. To maintain share over the long run in the fiercely competitive EGM market, manufacturers need to consistently deliver new, high-quality games that keep consumers engaged and maximize revenue for gaming venues. This requires continuous spending on research and development. Relative to Aristocrat, Light & Wonder spends a lower percentage of revenue on R&D. As a result, we expect it will be difficult to capture material, maintainable share in the EGM market. But we do not expect Light & Wonder to cede share to smaller players either, as its R&D spending is multiples of most of its smaller competitors.