Light & Wonder has agreed to a blockbuster deal in the charitable gambling business.
The slot machine maker and cross-platform games company has agreed to acquire Grover Gaming in an all-cash deal valued at $850 million. Grover Gaming, a charitable gambling business, operates in five states allowing charitable organizations to benefit from the sale of pull tabs. Since its founding in 2003, Grover Gaming has raised more than $200 million.
Its efforts benefit groups including the American Legion and Veterans of Foreign Wars.
“Grover Gaming is a leading player in charitable gaming, a category that has experienced significant growth in recent years,” said Light & Wonder CEO and president Matt Wilson. “This transaction complements our position as the leading cross-platform global games company by adding another compelling regulated adjacency to our profile.”
Light & Wonder’s deal for Grover Gaming also includes a contingent cash consideration of up to $200 million based on certain financial targets that are met through fiscal 2028.
Light & Wonder grows business
The company believes its acquisition of Grover Gaming will establish its position as a leader in charitable gambling while implementing its cross-platform strategy.
Grover Gaming has solidified its presence in North Dakota, Ohio, Kentucky, New Hampshire and Virginia with more than 10,000 electronic pull tab units in operation.
Its employees will combine with Light & Wonder’s workforce once the deal is closed. Light & Wonder expects the transaction to close in Q2 2025 pending regulatory approvals.
The Las Vegas-based gambling giant has reaffirmed its 2025 consolidated AEBITDA target of $1.4 billion amid the acquisition with its net debt leverage ratio on a combined basis to range between 2.5x and 3.5x. The projection is in line with its previous estimate.
Light & Wonder will provide more details on the deal on May 20 during its Investor Day.
