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Light & Wonder Reports Fourth Quarter and Full Year 2023 Results
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Light & Wonder Inc. reported results for the fourth quarter and fiscal year ended December 31, 2023. The Consolidated revenue in the quarter grew 13%.
Highlights
- Gaming revenue increased to $496 million, up 13% compared to the prior year period, primarily driven by another quarter of robust Gaming machine sales growth, which increased 31% globally, coupled with continued strong momentum in Gaming operations.
- SciPlay revenue rose to $204 million, a 12% increase from the prior year period, breaking a quarterly revenue record for the sixth consecutive quarter, driven by the core social casino business, which once again delivered strong payer metrics and outpaced the market and gained share.
- iGaming revenue increased 13% to $70 million reflecting continued growth momentum in the US and international markets.
- Full year consolidated revenue increased 16% to $2.9 billion delivering record results, which showcased strong financial performance, execution on growth strategy and transformation, and continued advancement toward long-term financial targets.
Matt Wilson, President and CEO of Light & Wonder, said: “2023 was a banner year for Light & Wonder. Our businesses delivered double-digit growth across the board throughout the year, enabled by strategic investments and strong execution. We consistently leverage a differentiated product strategy and plan to capitalize on the significant growth opportunities ahead of us. I am thrilled with the momentum we continue to see in the business, and with our winning mentality, experience, and talent in place, we are well-positioned to continue our growth trajectory. I want to congratulate our team on a successful year and know the best is yet to come.”
Oliver Chow, Chief Financial Officer of Light & Wonder, said: “We continue to see healthy trends in the business and were able to capitalize on many of the opportunities presented to us in 2023 to deliver strong top- and bottom-line growth, both in the quarter and for the full year. Our teams continued to deliver quality earnings with improved metrics over the course of 2023. Moving forward, we will focus on driving sustainable growth and executing against our balanced and opportunistic capital allocation strategy with discipline, driving value for all stakeholders.”
Leverage, Capital Return and Strategy Update
- Principal face value of debt outstanding of $3.9 billion, translating to net debt leverage ratio of 1x as of December 31, 2023, despite the cash outflow required to complete the SciPlay merger. The net debt leverage ratio decreased 0.2x from December 31, 2022, and remained within the targeted net debt leverage ratio range of 2.5x to 3.5x.
- Returned $25 million of capital to shareholders through the repurchase of approximately 3 million shares of L&W common stock during the quarter and $170 million or 2.4 million shares during 2023. Since the initiation of the program, the company has returned $575 million of capital to shareholders through the repurchase of approximately 9.4 million shares of L&W common stock, representing 77% of total program authorization.
- Repriced the Term Loan B in January 2024 reducing the interest rate by 35 basis points, resulting in a reduction in annualized interest costs of approximately $8 million.
- SciPlay merger integration completed successfully, with the Company strengthening its cross-platform strategy through synergistic game development processes across all businesses.
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Arizona Boxing and Mixed Martial Arts Commissioner, Joe Pennington, Retiring After 24 Years of Service
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After serving over 24 years as a Commissioner on the Arizona Boxing and Mixed Martial Arts (“MMA”) Commission, Joe Pennington presided over his final commission meeting on Wednesday, February 19, 2025. Pennington was appointed to the Arizona Boxing and MMA Commission in 2001 by Governor Jane Hull and served under the next four administrations of Janet Napolitano, Jan Brewer, Doug Ducey, and Katie Hobbs.
During his tenure, Commissioner Pennington played a key role in strengthening safety protocols for fighters and reinforcing Arizona’s position as a leader in combat sports regulation. He is most proud of the Commission’s commitment to combatant safety, exemplified by the adoption of the concussion protocol and testing, the passage of 581679, the Boxing/MMA Omnibus Bill, in 2024, and the adoption of rules for Boxing, MMA, Kickboxing, Muay Thai, and Tough Man competitions. Last fall, the Arizona Boxing & MMA Commission was recognized as “Commission of the Year” at the North American Boxing Federation Awards Banquet for its regulatory efforts.
“It has been a pleasure to work alongside Commissioner Pennington over the last few years,” said Danny Vella, Executive Director of ADG’s Boxing and MMA Division. “I am grateful for his nearly two and a half decades of dedicated service and commitment to enhancing combat sports regulation in Arizona. I wish Mr. Pennington the best in his retirement and look forward to the continued impact of his tremendous contributions.”
“On behalf of the Arizona Department of Gaming, I want to extend our deepest gratitude to Commissioner Joe Pennington for his unwavering dedication and service to the Boxing & Mixed Martial Arts community in Arizona,” said Director Jackie Johnson, ADG. “Through multiple administrations, his commitment to integrity, fairness, and the growth of combat sports has left a lasting impact on the industry and the state. We thank him for his years of leadership and public service.”
Serving in his final commission meeting, Commissioner Pennington was presented a commendation from Executive Director Vella on behalf of Governor Katie Hobbs, receiving well wishes from several attendees of the Arizona Boxing and MMA Commission meeting on Wednesday, February 19, 2025, The Department and its staff wish Mr. Pennington a joyous and adventurous retirement, and we are forever grateful for his 24 years of service to combat sports safety and regulation in Arizona.
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Continent 8 Technologies Launches its Data Center in Missouri
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Continent 8 Technologies, the leading provider of global managed hosting, connectivity, cloud and cybersecurity solutions to the iGaming and online sports betting industry, has launched its data center and managed and professional services in Missouri.
Following the approval of Missouri Amendment 2 on November 5, 2024, the Missouri Gaming Commission (MGC) is preparing the state for the launch of its regulated online sports betting market, scheduled for December 1, 2025. Continent 8’s first-to-market strategic approach provides Missouri online sports betting operators and suppliers with immediate access to Continent 8’s data center, along with a full suite of best-in-class services that facilitate the rapid deployment of secure, resilient, zero-compromise gaming platforms.
The US continues to be a strategic market for Continent 8, as it remains not only the fastest growing, but only end-to-end solutions provider for the gaming industry in the nation. Continent 8 possesses requisite regulatory licenses, certifications, approvals, and registrations across more than 30 states, including Michigan, New Jersey, Pennsylvania, and now Missouri. The most recent EGR Power US Rankings underscores Continent 8’s position as the premier service provider in the industry, servicing and supporting 95% of the listed operators.
Michael Tobin, CEO and Founder of Continent 8 Technologies, said: “The approval of Missouri Amendment 2 highlights the continuous growth of the regulated and highly competitive US online sports betting market. We are thrilled to already be engaged with numerous customers and actively preparing their environments for the soon-to-open market.
“Our approach, anchored in regulatory compliance, ensures that gaming operators and suppliers are equipped with market-ready solutions to swiftly establish state-compliant, secure and uncompromising infrastructures, while providing ample time to optimize their platforms well in advance of the state’s launch date.”
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PA Gaming Control Board Levies Fines Totaling $81,575
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The Pennsylvania Gaming Control Board has approved two consent agreements presented by its Office of Enforcement Counsel (OEC) resulting in total fines of $81,575.
Both fines were assessed against PID LLC, operator of Presque Isle Downs & Casino in Erie County:
• A $50,000 fine for having less than the approved number of active slot machines on the floor; and,
• A $31,575 fine for failure to timely file a Principal License application.
Copies of any of the approved Consent Agreements containing additional details are available upon request through the Board’s Office of Communications.
The Board also took action to place, or deny requests for removal of a previous placement, of 9 individuals from its various Involuntary Exclusion Lists. Placement on an Involuntary Exclusion List prohibits individuals from either gaming in a casino in Pennsylvania, via an online betting site regulated by the Board, or a Video Gaming Terminal (VGT) location. Currently, 1344 persons are on the Board’s various Involuntary Exclusion Lists.
The actions by the Board include three individuals who left a minor or minors unattended while gambling in a Pennsylvania casino. Placed on the list were:
• A male patron who left a 5-year-old unattended in a vehicle in the valet parking lot at Rivers Casino Philadelphia for 12 minutes as he attempted to conduct financial business in the casino; and,
• A male patron who left a 10-year-old unattended in a vehicle with the windows rolled up and engine not running in the parking garage of Wind Creek Casino for 45 minutes with an outside temperature of 90 degrees while he gambled on slot machines.
Denied their requested removal from earlier placement on the Involuntary Exclusion list were:
• A female patron who, in 2022, left three minors, ages 10, 14 and 15, unattended in a vehicle in the parking garage of Hollywood Casino at Penn National Race Course for one hour 41 minutes while she gambled at slot machines.
Actions such as these to deny statewide gambling privileges serve as a reminder that adults are prohibited from leaving minors unattended in the parking lot or garage, a hotel, or other venues at a casino since it creates a potentially unsafe and dangerous environment for the children. To compliment the efforts by casinos to mitigate this issue, the Board created an awareness campaign, “Don’t Gamble with Kids”.
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