Light & Wonder (ASX:LNW) posted modest revenue growth in 2025, driven by Gaming and iGaming segments, while SciPlay revenue dipped slightly. The company completed its Grover acquisition, settled a $128 million IP dispute with Aristocrat, and transitioned to a sole ASX listing.
- 2025 revenue up 4% to $3.3 billion
- Grover acquisition expands charitable gaming footprint
- Aristocrat litigation settled for $128 million
- SciPlay revenue declines amid payer drop
- Transition to sole ASX listing completed
Financial Performance and Segment Highlights
Light & Wonder (LNW) closed 2025 with a 4% increase in consolidated revenue to $3.3 billion, supported by strong Gaming and iGaming performances, offset by a 3% decline in SciPlay revenue. Gaming revenue rose 6% to $2.18 billion, propelled by a 25% jump in gaming operations revenue, including $102 million from the recently acquired Grover charitable gaming business, which now operates over 11,600 units across six U.S. states.
SciPlay’s revenue fell 3% to $794 million, mainly due to a drop in average monthly payers, particularly at JACKPOT PARTY® Casino, though this was partly offset by a 9% rise in average revenue per paying user. The proprietary direct-to-consumer platform now accounts for 19% of SciPlay’s revenue, up from 11% in 2024. Meanwhile, iGaming revenue grew 13% to $337 million, buoyed by North American market expansion and original content proliferation.
Operating expenses rose 4% to $2.63 billion, driven by depreciation and amortisation increases linked to Grover and Gaming operations growth, and a $130 million charge related to legal matters, primarily the Aristocrat settlement. The company’s adjusted EBITDA expanded 16% to $1.44 billion, reflecting operational leverage and margin improvement initiatives.
Grover Acquisition and Strategic Moves
In May 2025, LNW completed the $850 million acquisition of Grover Gaming, entering the U.S. charitable electronic pull-tabs market. The acquisition complements LNW’s existing Gaming segment and diversifies its revenue streams. Grover’s contingent consideration liability increased by $25 million during the year, reflecting successful market expansion, including entry into Indiana.
Capital discipline remained a focus with $885 million spent on share repurchases in 2025, part of a $1.5 billion authorised buyback program. The company also refinanced debt, issuing $1 billion of 6.25% senior notes due 2033 to redeem earlier notes and reduce borrowing costs. The credit facility was amended to increase revolving commitments to $1 billion and extend maturity to 2030, while lowering interest margins.
Aristocrat Litigation Settlement
Light & Wonder settled its high-profile intellectual property dispute with Aristocrat for approximately $128 million, resolving claims related to the Dragon Train and Jewel of the Dragon games in both the U.S. and Australia. The settlement includes dismissal of all claims and withdrawal of disputed games, allowing LNW to focus on its core franchises and growth strategy. This follows the company’s recent $128 million litigation settlement and underscores ongoing legal risk management.
Regulatory and Market Risks
LNW continues to navigate a complex regulatory landscape, including recent U.K. gambling reforms that introduced online slot stake limits and increased remote gaming duties from 21% to 40% starting April 2026. These changes are expected to affect revenue and profitability in the iGaming segment. The company also flagged risks from evolving digital gaming regulations, cybersecurity threats, and foreign currency fluctuations impacting international operations.
Despite these headwinds, LNW’s management highlighted the company’s robust internal controls, effective cybersecurity measures, and commitment to ESG principles, including diversity, sustainability, and responsible gaming. The company’s transition to a sole primary listing on the ASX in November 2025 marks a new compliance era, although it acknowledges potential liquidity impacts and increased regulatory costs from dual-jurisdiction reporting.
Legal Challenges and Ongoing Litigation
Beyond the Aristocrat settlement, LNW faces several ongoing legal proceedings, including class actions related to social casino gaming alleged violations in multiple U.S. states. The company has settled several of these cases in late 2024 and 2025, with others pending. It maintains a vigorous defence stance and has accrued $144 million for legal contingencies as of year-end. The company also disclosed patent infringement claims by Evolution Gaming and others, which remain unresolved.
Among the litigation risks, a recent class action in Victoria alleges misleading statements about the Dragon Train game, targeting shareholders who purchased CHESS Depositary Interests between May 2023 and September 2024. LNW has committed to a vigorous defence in this matter, adding to the legal complexity facing the company. This legal challenge follows the company’s recent class action lawsuit and highlights ongoing reputational risks.
Innovation, Talent and Future Outlook
LNW invests heavily in R&D across multiple global centres, focusing on cross-platform game content and leveraging AI technologies cautiously with internal policies to manage emerging risks. The company employs around 6,800 people worldwide and emphasizes an inclusive culture, talent retention, and employee wellness. Its ESG initiatives span environmental sustainability, social impact, and governance, with annual reporting aligned to UN Sustainable Development Goals.
Looking ahead, LNW’s ability to execute its cross-platform strategy, manage regulatory changes, and integrate acquisitions like Grover will be critical. The company’s cash flow generation and disciplined capital allocation provide flexibility, but uncertainties remain around regulatory developments, economic conditions, and ongoing litigation. Investors will be watching how LNW balances growth with risk mitigation in a rapidly evolving gaming market.
Bottom Line?
Light & Wonder’s 2025 results reflect solid operational momentum and strategic progress, but legal and regulatory risks remain significant headwinds to monitor closely.
Questions in the middle?
- How will the Grover acquisition integrate operationally and financially over the next 12 months?
- What impact will UK gambling tax hikes have on LNW’s iGaming revenue and margins in 2026?
- Could ongoing litigation, including the Victoria class action, materially affect LNW’s reputation or share price?