Light & Wonder has successfully finalized its acquisition of Grover Gaming’s charitable gaming assets, marking a significant milestone in its expansion strategy into complementary regulated markets. This strategic move, first announced in February 2025, brings together two companies with strong cultural alignment and synergistic business operations, positioning Light & Wonder to strengthen its foothold in the charitable gaming sector.
Acquisition Overview and Financial Terms
The transaction, completed on May 19, 2025, involved an $850 million cash payment, subject to customary purchase price adjustments, plus a potential revenue-based earn-out of up to $200 million cash over a four-year period. This valuation represents approximately 7.7 times Grover’s 2024 Adjusted EBITDA, or about 7.1 times when considering run-rate performance. The deal closed within the anticipated timeframe, as Light & Wonder had previously projected completion during the second quarter of 2025.
Grover Charitable Gaming, previously under the ownership of Garrett Blackwelder, brings approximately 10,000 leased electronic pull-tab units operating across five U.S. states into Light & Wonder’s extensive portfolio. These operations, spanning North Dakota, Ohio, Virginia, Kentucky, and New Hampshire, function under a recurring revenue model that has proven highly successful. The acquired business generated impressive financial results in 2024, with revenue of $135 million and adjusted EBITDA of $111 million.
The Evolution of Light & Wonder
Light & Wonder’s journey to its current position as a global gaming leader has involved significant transformation over the years. Originally established as Scientific Games Corporation, the company rebranded in March 2022 after strategic divestitures of its lottery and sports betting divisions. This rebranding reflected the company’s renewed focus on its core casino gaming business.
The company’s history actually traces much further back, connecting to Autotote, a manufacturer of totalizator systems for parimutuel wagering at racetracks, with roots dating to 1917 when George Julius founded Automatic Totalisators Limited in Australia. Through decades of evolution and strategic acquisitions, including companies like Bally Technologies, WMS Industries, and Shuffle Master, Light & Wonder has built a comprehensive portfolio of gaming products and services.
Today, Light & Wonder describes itself as “the leading cross-platform global games company,” employing approximately 6,500 team members worldwide. Headquartered in Las Vegas, Nevada, the company is publicly traded on both NASDAQ and the Australian Securities Exchange. The company’s mission centers on creating immersive content and forging lasting connections with players across various gaming platforms.
Grover Gaming: A Charitable Gaming Success Story
Founded in 2013 and headquartered in Greenville, North Carolina, Grover Gaming has established itself as a significant player in the charitable gaming space. The company specializes in developing software, game content, and gaming systems for lotteries and charitable gaming jurisdictions. Prior to the acquisition, Grover Gaming employed over 400 people across nine states, including specialized facilities such as a design studio in Wilmington, North Carolina and a Software Development Center in Chicago, Illinois.
Grover Gaming has built its business on strong relationships with charitable customers in its operating states, supported by dedicated local teams of service technicians and relationship managers. This customer-focused approach has enabled the company to establish a substantial installed base of electronic pull-tab units that generate consistent recurring revenue.
The company holds gaming licenses in numerous jurisdictions including Ohio, New Hampshire, Kentucky, North Dakota, South Dakota, Minnesota, Montana, Wyoming, West Virginia, Washington, Ontario Canada, Louisiana, and Virginia. This extensive regulatory approval network represents a valuable asset that Light & Wonder can now leverage for expanded market access.
Strategic Rationale and Business Synergies
For Light & Wonder, this acquisition aligns perfectly with its strategy to expand into complementary regulated markets, enhancing its position as a leading global cross-platform games company. The charitable gaming sector represents a growing opportunity with stable regulatory frameworks and consistent player engagement.
The integration of Grover Gaming’s assets is expected to proceed smoothly due to what Light & Wonder described as “strong cultural alignment” between the two organizations. This cultural compatibility suggests shared values and operational philosophies that should facilitate effective collaboration and minimize integration challenges.
Light & Wonder plans to operate the newly acquired business using a combination of existing Grover Gaming employees and Light & Wonder staff. This approach should help preserve the specialized knowledge and customer relationships that have made Grover Gaming successful while introducing Light & Wonder’s broader resources and expertise.
Leadership Perspectives on the Acquisition
Matt Wilson, President and Chief Executive Officer of Light & Wonder, expressed enthusiasm about the completed transaction, highlighting Grover Gaming’s established leadership in the charitable gaming space. “Bringing their assets and expertise into our ecosystem aligns perfectly with our strategy to expand into complementary regulated markets,” Wilson stated.
This addition enhances our position as the leading global cross-platform games company and opens new opportunities to deliver our world-class content to even more players.
Similarly, Brian Brown, who will retain his position as Chief Executive Officer of what now becomes Light & Wonder’s newest division, described the acquisition as an “exciting new chapter” for Grover Gaming. Brown emphasized the pride his team takes in what they’ve built and expressed optimism about the future under Light & Wonder’s ownership. “Our teams share a passion for innovation and a commitment to serving customers and communities, and we’re excited to take that to the next level together,” Brown remarked.
The retention of Brown in his leadership role signals Light & Wonder’s recognition of the value in maintaining continuity in Grover Gaming’s operations and leveraging existing management expertise.
Competitive Landscape and Market Positioning
Light & Wonder operates in a highly competitive gaming industry alongside major players such as IGT (International Game Technology), Aristocrat Leisure, NetEnt, and Evolution Gaming. Aristocrat Leisure, in particular, stands as the largest gambling machine manufacturer in Australia and one of the largest slot machine manufacturers globally.
The acquisition of Grover Gaming’s charitable assets gives Light & Wonder enhanced diversification across gaming segments and geographies. This diversification strategy has become increasingly important in the gaming sector as companies seek to mitigate regulatory risks and capitalize on emerging opportunities across various jurisdictions.
Aristocrat Leisure provides an interesting comparison as a competitor that has also pursued strategic acquisitions to strengthen its market position. In July 2014, Aristocrat agreed to purchase Video Gaming Technologies for approximately $1.3 billion to triple its North American business. The company has also expanded into mobile gaming through acquisitions of Plarium and Big Fish Games in 2017.
Integration Planning and Operational Synergies
The successful integration of Grover Gaming’s charitable assets will be critical to realizing the full value of Light & Wonder’s investment. According to announcements surrounding the deal, Light & Wonder intends to maintain Grover Gaming’s successful operating model while introducing strategic enhancements through its broader resources and technology infrastructure.
As part of the acquisition agreement, Garrett Blackwelder, former owner of Grover Charitable Gaming, will collaborate with Light & Wonder over the next three years to help drive continued business success. This arrangement ensures valuable continuity and knowledge transfer throughout the integration process.
The combined entity will benefit from Light & Wonder’s extensive experience integrating acquired businesses. The company has previously executed several successful acquisitions, including WMS Industries and Bally Technologies.
Financial Implications and Growth Outlook
The acquisition is expected to contribute positively to Light & Wonder’s financial performance. Grover Charitable Gaming’s $111 million in adjusted EBITDA from 2024 represents a significant earnings contribution that should enhance Light & Wonder’s overall profitability.
Light & Wonder’s strategy in recent years has focused on deleveraging its balance sheet after previously struggling with substantial debt. In 2020, the company carried approximately $9.2 billion in debt, which prompted a strategic review leading to the divestiture of its lottery and sports betting businesses. The company will need to balance the financial impact of this $850 million acquisition with its ongoing debt management objectives.
Technology Innovation and Future Opportunities
Both Light & Wonder and Grover Gaming have demonstrated commitments to technological innovation in their respective businesses. As they interact with the larger ecosystem that constitutes the casino business, there is intense competition from emerging trends such as crypto-currency based online casinos.
The world of Light & Wonder has invested heavily in research and development to stay ahead of industry trends and deliver cutting-edge gaming experiences. The company has explored advanced technologies such as augmented reality and artificial intelligence to create more immersive gaming environments.
The charitable gaming sector presents unique opportunities for technological advancement, particularly in digital pull-tab systems and remote gaming solutions. Light & Wonder can now apply its technological expertise to enhance Grover Gaming’s product offerings and potentially introduce new gameplay innovations to attract additional players.
What is Charitable Gaming?
Charitable gaming refers to games of chance conducted by nonprofit organizations to raise funds for charitable, religious, educational, or community purposes. These activities are legal in nearly every U.S. state, with only a handful prohibiting them. Common forms of charitable gaming include bingo, raffles, pull-tabs, and poker tournaments. States typically require organizations to obtain a gaming license, and there are strict regulations to ensure proceeds are used for the intended charitable purposes. For example, in Delaware, charitable gaming is defined as any game where chance predominates and participants pay to play for a chance to win a prize. The types of organizations eligible to conduct such games often include volunteer fire companies, veterans’ groups, religious institutions, and other nonprofits that have been established for at least two years. Organizations must also be careful that gaming does not become a substantial part of their activities, which could jeopardize their tax-exempt status.
The charitable gaming sector has a long history in the United States, dating back to the early 20th century, when bingo and raffles were first used by churches and community groups to fund local projects and charitable causes. Over time, the popularity of these games grew, leading to increased regulation to prevent fraud and ensure transparency. Today, charitable gaming generates billions of dollars annually for nonprofit organizations, supporting a wide range of causes from education and healthcare to veterans’ services and disaster relief. The sector has evolved with technology, introducing electronic pull-tabs and digital raffle systems, which have broadened participation and increased revenue potential.
