Light & Wonder has secured a $1 billion acquisition deal with Grover Gaming, a North Carolina-based leader in charitable gaming solutions. The agreement, announced on February 18, 2025, includes an initial cash payment of $850 million, with a potential $200 million additional payout based on financial performance milestones.

This acquisition expands Light & Wonder’s footprint into the rapidly growing charitable gaming market, aligning with broader iGaming and regulatory trends. Analysts believe this move will strengthen Light & Wonder’s financial standing, enhance cash flow, and reinforce its market position. The deal is expected to close by spring 2025, pending regulatory approvals.

Light & Wonder’s $1 Billion Investment: Key Acquisition Terms

The acquisition of Grover Gaming and G2 Gaming marks a strategic expansion for Light & Wonder, introducing a new revenue stream with strong financial margins.

This well-structured deal ensures that Light & Wonder maintains financial stability while expanding into a lucrative new market segment.

Grover Gaming: A Market Leader in Charitable Gaming

Founded in 2013 by Garrett Blackwelder, Grover Gaming has built a strong presence in the electronic pull-tab gaming market, a rapidly growing sector.

Key Highlights of Grover Gaming
Revenue Model: Recurring revenue from electronic pull-tab systems.
Regulated Operations: Active in North Dakota, Virginia, Ohio, New Hampshire, and Kentucky.
Gaming Licenses: Approved in South Dakota, Montana, West Virginia, Washington, and additional states.
2024 Financial Performance:
Net Revenue: $135 million
Cash Flow: $111 million
Cash Flow Margin: 82% (higher than any existing division within Light & Wonder)
This acquisition is aligned with broader gaming trends, as charitable gaming is experiencing rapid growth, even as traditional Class III slot gaming faces a slower expansion.

Financial and Market Impact of the Deal

Strategic Financial Gains for Light & Wonder
The deal valuation is based on a 7.1x cash flow multiple, making it a financially sound acquisition.
Analysts at Deutsche Bank estimate that Light & Wonder’s post-acquisition debt leverage will stay below 3.5 times cash flow, ensuring that the company's balance sheet remains healthy.
Goldman Sachs advised Light & Wonder on the transaction, emphasizing its long-term financial benefits.
Market Expansion and Growth Potential
Charitable gaming is a high-margin business, offering a profitable alternative to traditional slot gaming.
With an 82% cash flow margin, Grover Gaming outperforms other divisions of Light & Wonder, reinforcing its profitability strategy.
Light & Wonder's entry into the charitable gaming market diversifies its revenue sources, mitigating risks associated with regulatory uncertainty in traditional casino gaming.

Industry Analysts Weigh In: A High-Value Acquisition

David Katz, Jefferies Equity Research
“The acquisition of Grover Gaming is a value-enhancing move that introduces a new market segment while maintaining financial leverage within expected limits.”

Ruby Lu, TrendForce Research
“This deal strategically aligns with current market trends. The transition towards charitable gaming represents an alternative growth opportunity amid the plateauing expansion of traditional slot gaming.”

Industry experts agree that Light & Wonder has positioned itself well in a growing sector, capitalizing on higher profitability margins and expanding regulatory markets.

Leadership and Transition Plan

To ensure a smooth transition, Grover Gaming’s CEO, Garrett Blackwelder, will remain with the company for four years as a consultant.

CEO Insights on the Deal
Matt Wilson, CEO, Light & Wonder:

“Grover Gaming has built an industry-leading reputation in charitable gaming. This acquisition strengthens our position as a global cross-platform gaming company, expanding our reach into a highly lucrative market.”

Garrett Blackwelder, CEO, Grover Gaming:

“Light & Wonder’s commitment to innovation and gaming excellence makes this partnership a perfect fit. We look forward to working together in the transition phase.”

With strong leadership continuity, the integration of Grover Gaming into Light & Wonder’s ecosystem is expected to be seamless.

The Future of Charitable Gaming and Light & Wonder’s Role

The iGaming landscape is evolving, and charitable gaming is emerging as a significant growth driver.

With charitable gaming gaining regulatory approval in more states, this market is expected to expand significantly.
Light & Wonder’s early entry into this space positions it ahead of competitors in a sector that could become a dominant revenue stream.