Light & Wonder, under the leadership of CEO Matt Wilson, has been experiencing significant growth and success both in in-person, social, and online channels as well as in capital markets. The company’s recent decision to divest its sports betting and lottery arms is being validated by strong financial results. In the third quarter of 2023, Light & Wonder saw a 12.8% increase in revenue to $731 million, driven by record returns from igaming and social casino games.
Wilson believes that in order to be world-class, a company can only focus on a limited number of things. Therefore, Light & Wonder chose to keep its three most complementary businesses, demonstrating a simplified strategy. This decision has unlocked significant value for the company. Other gaming companies, such as IGT and Playtech, are now considering similar simplified strategies after seeing Light & Wonder’s success.
Light & Wonder recently secured a secondary listing on the Australian Stock Exchange, which has opened up access to new capital and attracted investor interest.
Wilson is now focusing on growth opportunities in Asia, primarily in Macau and the Philippines, where the company already holds a dominant position in the Asian machine market. Wilson sees significant potential in the Asian market and believes that Light & Wonder’s technology and global addressable market make it an attractive investment.
However, Wilson emphasizes the importance of robust regulation when entering new markets, particularly in the Philippines iGaming market. He is committed to making sure that any expansion into these markets occurs within clear and compliant regulatory conditions.
As Light & Wonder continues to expand, Wilson acknowledges the challenges of competing against digital-first suppliers who may not have the same compliance obligations. He urges regulators to take a closer look at companies operating in their ecosystems and ensure that they are not supporting black market activity.
Looking ahead, Wilson sees potential for the US igaming market to break through in 2024, noting that the US is still primarily a land-based market. However, he is confident that digital-first titles will eventually gain traction in the US market, offering room for different types of games to succeed. Overall, Light & Wonder’s strategic decisions and Wilson’s leadership are positioning the company for continued growth and success.