Light & Wonder Acquires Grover Gaming For $1 Billion
Light & Wonder has successfully wrapped up a significant acquisition, securing Grover Gaming’s charitable gaming assets with a total value of $1.05 billion. This strategic move includes an upfront payment of $850 million, complemented by a potential $200 million earn-out over the next four years.
### Financing and Financial Impact
The acquisition was primarily financed through an $800 million loan, underscoring Light & Wonder’s commitment to expanding its portfolio. The integration of Grover Gaming is projected to contribute over $100 million towards Light & Wonder’s adjusted EBITDA target of $1.4 billion for the current fiscal year. Notably, the initial payment valuates Grover Gaming at approximately 7.7 times its estimated adjusted EBITDA of $111 million for 2024, following its reported revenue of £135 million in the previous year.
### Integration of Talent and Resources
As part of this acquisition, approximately 120 employees from Grover Gaming—mainly located in Virginia, Ohio, Kentucky, New Hampshire, and North Dakota—will be joining Light & Wonder. Additionally, the acquisition includes over 10,000 gaming machines, which can be leased to charities hosting Bingo, casino, or lottery events. This strategic move not only enhances operational capabilities but also amplifies the potential reach into the charitable gaming sector.
### Strengthening Market Position
Matt Wilson, President and CEO of Light & Wonder, expressed enthusiasm regarding the acquisition: “Grover Gaming has established itself as a leader in the fast-growing charitable gaming space. Integrating their assets and expertise into our ecosystem is perfectly aligned with our strategy to expand into complementary regulated markets.”
Wilson also detailed the company’s openness to exploring opportunities in sweepstakes casinos, should regulatory frameworks evolve favorably.
### Financial Performance Overview
This acquisition is set against a backdrop of robust financial growth for Light & Wonder. The company reported a 2% increase in revenue to $774 million in Q1 2025, marking its 16th consecutive quarter of year-on-year growth. This performance further solidifies the company’s position in the competitive landscape of global gaming.
### Grover Gaming’s Perspective
Brian Brown, CEO of Grover Gaming, reflected on this new chapter: “Joining Light & Wonder marks an exciting transition for our charitable gaming operations. We are proud of our achievements in charitable gaming and see tremendous potential for enhanced growth as part of this esteemed company. Our teams share a heartfelt commitment to innovation and community service, and we look forward to elevating that mission together.”
### Regulatory Landscape and Market Insights
It is essential to recognize that charitable gaming is subject to state regulations, typically overseen by state gaming commissions or U.S. lottery boards. According to the North American Gaming Almanac, charitable gaming accounted for 1.84% of total North American gaming revenue, reflecting a slight decline of 2.40% from the previous year.
In conclusion, Light & Wonder’s acquisition of Grover Gaming not only exemplifies strategic growth within the gaming industry but also highlights the evolving landscape of charitable gaming. Moving forward, this partnership is poised to enhance service delivery and community engagement, further solidifying Light & Wonder’s leadership position in the global gaming arena.
