Light & Wonder Inc. (LNW) is celebrating a strong quarter, highlighted by $731 million in revenue, an increase of 13% over last year’s results. Q3 marked the tenth consecutive quarter of year-over-year revenue growth for the company. The gaming sector contributed the largest revenue share of $465 million, and the other two sectors, SciPlay and iGaming, had record quarters.
CEO Matt Wilson said part of the success of SciPlay was its focus on the user experience while iGaming benefited from new launches. The iGaming sector also saw two LNW subsidiaries, Authentic Games and Plazido, enter the US. During the company’s quarterly earnings call, Wilson also shared some plans on how to continue the growth of both SciPlay and iGaming.
SciPlay’s Results Show Why LNW Wanted Ownership
There’s a reason LNW paid almost $500 million to acquire shares it didn’t already own in SciPlay. The social casino developer generated $196 million in revenue, a 15% increase year-over-year (YoY). SciPlay’s result also outpaced the market, where Wilson says the company now has over 10% share.
The CEO believes SciPlay’s success is based on “a player-first approach with consistent delivery of new content, timely features, and dynamic community engagement tailored for our players.” As a result, revenue for SciPlay’s four most popular games—Jackpot Party, Quick Hit Slots, Gold Fish Casino, and 88 Fortunes—increased by double digits.
SciPlay also achieved record metrics, including average monthly revenue per paying user and average revenue per daily active user. Additionally, daily active users with pay conversion rose to 10.6%.
Wilson said LNW will continue to invest in SciPlay, which includes adding automation, standardization, development, and AI integration tools and processes. Ensuring security and ease-of-use updates on SciPlay’s direct-to-consumer platform will also be a key focus in the future. LNW believes that these improvements will improve user experience and future growth.
Major US Launches to Further Boost iGaming Segment
iGaming also had reasons to celebrate. The segment generated $70 million in revenue, an increase of 21% YoY. The US market was a primary driver, with a 22% increase YoY. During the Q3 earnings call, Wilson noted the launch of Rich Little Piggies Meal Ticket slot as a factor for the growth. He added that the slot set records in the US and UK in the first 30 days.
The end of the quarter also saw two important launches for LNW in the US that will grow the segment even further. After nearly two years of promises, the company entered the live dealer scene in the US through its subsidiary Authentic Gaming, which received a Michigan license.
Michigan also saw the US debut of another LNW subsidiary, Playzido. Playzido is a content creation platform that is part of LNW’s Open Gaming aggregation platform. The platform will allow many smaller overseas studios to gain access to the growing US iGaming market.
Live Dealer Is a Big Opportunity in the US
Wilson expressed his excitement about finally launching live dealer games in the US and the opportunities it presents. He believes live dealer games will reach a 30% share of the iGaming market in the future. However, Wilson said that’s a multi-year opportunity and that it will take time to get there. He also expressed his confidence that the company belongs in the segment and can execute at the highest level.
Wilson was surprised by how long it took to launch in the US. He thinks regulators took longer than anticipated because it was the company’s first market in the country. Now that Authentic is live at Michigan casinos, Wilson believes that going into other states shouldn’t take as long. However, the company is planning to take things slow.
LNW plans to establish a presence and gain market share in Michigan before moving to other states. Wilson said the company wants to be efficient and is comfortable where it is, so there’s no need to rush.
Could We See Netflix-Branded Digital Slots?
At this year’s Global Gaming Expo (G2E) in Las Vegas, LNW unveiled a Squid Game slot based on the popular Netflix show of the same name. Squid Game is one of the most-watched shows on the streaming platform. With a new season next year, plus a Squid Game reality show set to debut on Nov. 22, the LNW slot machine will most likely get plenty of attention.
Unique features include eliminating players to get to a prize. It also incorporates popular games from the show, such as Tug of War, The Glass Tile, and Red Light, Green Light.
If the slot performs well, we might see more Netflix-branded titles in the future. Given the large percentage of Millennial and Gen Z subscribers, a move to digitalize the slot would make sense.
LNW already showed that it’s looking to digitalize popular retail slots. Last summer, the company extended its partnership with Warner Bros. to create digital versions of Warner-branded retail titles like the Willy Wonka and Wizard of Oz slots.
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