Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioAs it prepares to leave the NASDAQ for a sole listing on the Australian Securities Exchange (ASX), Light & Wonder (LNW) delivered record iGaming revenue and steady profit growth in the third quarter.
During the earnings call, executives praised iGaming and highlighted the impact of unregulated sweepstakes casinos on social gaming. They also framed the ASX move as a defining step in the company’s transformation.
iGaming: ‘A Real Bright Spot’
The standout performance came from Light & Wonder’s iGaming division. CEO Matt Wilson called it “a real bright spot for the quarter.”
“We delivered record revenue of $86 million in the quarter, up 16% year over year,” he told analysts. “Seven out of the top ten games across our OGS network were first-party game titles… reflecting the strength of our omnichannel strategy.”
Wilson also celebrated the success of one new title. “We saw the launch of Huff and Puff the Family into the channel in the US,” he said. “It’s got to 5% of the entire market in the US in the period, which just is a testament to how great high-quality land-based games can translate into great success in the digital iGaming markets.”
The sector reported strong comps, with Adjusted EBITDA increasing 42% and margins expanding by 800 basis points. Wilson credited the result to “the proliferation of first-party content.”
Sweepstakes Casinos Impact SciPlay
The company’s social gaming arm, SciPlay, however, did not fare similarly. Like in Q2, Jackpot Party dragged on the overall portfolio.
“Jackpot Party… is not where we want it to be, and we need to work hard to get that back into growth mode,” Wilson said.
He linked the decline directly to competition from sweepstakes casinos.
“We’ve been fairly public about the impact of Sweeps on this category. We see some data in markets where Sweeps is being eliminated, and we’re seeing a subsequent uptick in the social-casino market.”
LNW has been a vocal opponent of sweepstakes casinos and their impact on the regulated social gaming segment. Wilson’s remarks signal that Light & Wonder views enforcement actions as a tailwind for 2026.
“We think as that manifests over time, and the deregulation of Sweepstakes, I guess, happens over time, that’ll be a tailwind for the social casino sector,” he said.
Wilson added that SciPlay’s shift toward direct-to-consumer distribution continued to boost profitability. “A year ago, we were at 12% of revenues with direct-to-consumer. It’s 20% now,” he said. “We feel like we can accelerate beyond that target over time.”
Regarding Jackpot Party’s recovery, Wilson stated that the team is focused on reworking the game’s economy and live operations to restore growth. “There is reason to believe the general environment will improve as initial data from states where the ban is in effect becomes available,” he said.
From NASDAQ to ASX: A Strategic Rebrand
Throughout the call, management framed the company’s delisting from the NASDAQ not as a retreat but as an evolution. Wilson said:
“We remain intentional and committed to our capital-allocation strategies. This quarter, we returned $111 million of capital to our shareholders through share repurchases… as we transition to a sole standard listing on the ASX, scheduled to take effect on November 14 in Australia.”
He described the upcoming ASX-only listing as “the next step of our company’s journey” that will “provide significant shareholder value and enable us to enhance Light & Wonder’s profile in a market that is attuned to the gaming industry.”
CFO Oliver Chow added that the company has already expanded its financial disclosures “aligned with the Australian market.” He noted that the Q3 release includes a new reconciliation of non-GAAP profitability metrics to meet ASX standards.
The shift reflects both geographical and identity considerations. It positions LNW alongside competitors like Aristocrat Leisure as a global content studio rather than a US-listed slot machine manufacturer.
Aristocrat: The Elephant Not in the Room
Despite multiple questions on strategy and competition, neither Wilson nor Chow mentioned Aristocrat or the lawsuits between the two companies. The omission was conspicuous, given their ongoing intellectual-property dispute over game math models.
At the end of the quarter, a Nevada federal judge ordered LNW to hand over key mathematical models tied to certain “hold and spin” games released since 2021. The ruling reversed a June 2025 decision that sided with L&W and denied Aristocrat access to those materials
Q3 Highlights
The third quarter delivered solid results across all key metrics:
- Consolidated revenue: $841 million, up 3% year-over-year.
- Adjusted EBITDA: $375 million, up 18%.
- Adjusted NPATA: $153 million, up 25%.
- Net income: $114 million, up 78% from Q3 2024.
- Net income per diluted share: $1.34 (up 89%).
- Free cash flow: $136 million (up 64%).
Recurring revenue accounted for 69% of the total. Wilson emphasized that it is “a key driver of our cash-flow flywheel.”
“We continue to improve our quality of earnings, with gaming operations once again emerging as an area of strength,” he said.
The company also continued its aggressive buyback program, repurchasing $111 million during the quarter and an additional $101 million after quarter-end. That brought the total repurchases to $1.5 billion since 2022. This represents roughly 21% of the shares outstanding.
