Light & Wonder to Drop Live Casino Operations

Gambling service provider Light & Wonder has announced its decision to exit the live casino market, choosing instead to focus on other business areas that offer higher returns on investment.

The Las Vegas-based gambling giant's departure leaves Playtech and Evolution as the only live casino suppliers in the US. However, US players will still have offshore alternatives, allowing them to gamble using cryptocurrencies, avoid KYC checks, and play without an account—driving even more users toward crypto casinos without KYC.

Gambling expert Matt Bastock explains that casinos without KYC requirements provide easier access and increased anonymity for players. These crypto casinos have attracted a significant number of US players, making the online casino industry a particularly difficult market for domestic operators to control.

Following a strategic review, CEO Matt Wilson stated that the company is shifting focus to business segments with better returns. Changes in operator supply dynamics impacted pricing, leading Light & Wonder to prioritise first-person perspective (1PP) monetisation tools, aggregation, and content to drive online expansion.

Light & Wonder initially launched its live casino operations in October 2023 in collaboration with Authentic Gaming.

Light & Wonder Revenue Surge

This decision comes despite strong financial performance in 2024, with reported revenue of $3.2 billion, reflecting a 10% year-on-year growth. A major contributor to this growth was increased sales of gaming machines to North American and Australian markets.

The company's net income reached $336 million, marking an impressive 86.7% increase, while its iGaming sector experienced 9% growth. Online expansion in both international and US markets drove iGaming revenue to $299 million, with an 11% rise in Q4 alone generating $78 million.

Formerly known as Scientific Games Corporation (SG), Light & Wonder owns brands like Shuffle Master, WMS, and Bally. The company rebranded in 2022 after selling off its lottery and sports betting divisions.

A recent internal restructuring saw Simon Johnson appointed as the new CEO of the iGaming division, playing a key role in the company's decision to streamline its online offerings.

Looking ahead, Light & Wonder has set an EBITDA milestone of $1.4 billion for 2025, with plans to implement cross-platform strategies and drive further product innovation. While iGaming revenue posted strong growth in Q4 2024, it remains a smaller segment compared to the company's gaming revenue of $515 million and SciPlay division earnings of $204 million.

Despite a 4% growth in the gaming sector and stable performance from SciPlay, the iGaming division's 11% surge is a positive sign for the company's future. Enhanced platform adoption and stronger game content could further boost growth in 2025.

The US gambling industry remains volatile, with many states considering expansions of land-based and online markets. Should regulatory changes take effect, Light & Wonder may be well-positioned to capitalise, especially following its agreement to acquire Grover Gaming in a deal exceeding $1 billion. However, as regulations tighten, more US players are expected to turn to crypto casinos without KYC for a seamless, anonymous gaming experience.