Light & Wonder (NASDAQ/ASX: LNW) Acquires Grover Gaming’s Charitable Gaming Assets in $850M Deal

Light & Wonder (L&W) is making a big move into the fast-growing charitable gaming space with the acquisition of Grover Charitable Gaming, the electronic pull-tab leader in the U.S. The deal, worth $850 million in cash, plus a potential $200 million earn-out, marks a strategic push into recurring revenue gaming.

Why This Deal Matters

Grover Charitable Gaming is no small player—it has over 10,000 leased pull-tab units across five U.S. states (ND, OH, VA, KY, NH) and generated $135 million in revenue in 2024, with an impressive $111 million in EBITDA. The acquisition gives L&W immediate scale in a lucrative, cash-generative business.

L&W CEO Matt Wilson highlighted the importance of the deal:

“This transaction complements our position as the leading cross-platform global games company by adding another compelling regulated adjacency to our profile.”

The Strategic Play

  • Expands L&W’s footprint into charitable gaming, a high-growth, regulated sector.
  • Recurring revenue model strengthens L&W’s earnings base.
  • Leverages L&W’s land-based content to enhance Grover’s existing offerings.
  • Strong cultural fit between the two companies ensures smooth integration.

Grover Gaming’s Founder & CEO Garrett Blackwelder sees this as the perfect match:

“Light & Wonder is an ideal partner for us, given our similar company cultures and dedication to innovation and customer service.”

Financial Impact

  • The 7.7x multiple on 2024 EBITDA suggests strong value for L&W shareholders.
  • Expected to be highly accretive, with high-single-digit NPATA per share growth in the first full year post-acquisition.
  • L&W will fund the deal with cash and incremental debt, maintaining a net leverage ratio of 2.5x–3.5x.

What’s Next?

The transaction is expected to close in Q2 2025, pending regulatory approvals. Post-acquisition, L&W will operate Grover Charitable Gaming with a mix of Grover and L&W employees, ensuring business continuity and future growth.

For investors, this is a strategic win—expanding L&W’s revenue base while enhancing its leadership in cross-platform gaming.