Las Vegas gaming company optimistic about future despite setback
Even though a court order required Las Vegas-based Light & Wonder to take 2,200 Dragon Train slot machines off North American casino floors last month, the company’s top executive is bullish on the company’s future.
Light & Wonder CEO Matt Wilson on Tuesday pointed to the company’s third-quarter earnings results and said the anticipated international gaming growth over the next several years bodes well for the company that produces the Dancing Drums, Huff n’ Puff and Wizard of Oz slot machine franchises.
“It was truly affirming to see the positive reception from both customers and industry leaders (at last month’s Global Gaming Expo in Las Vegas) further reinforcing our belief that we’re on the right path towards innovation and growth,” Wilson said in Tuesday afternoon’s conference call with investors announcing third-quarter results.
The company reported its ninth consecutive quarter of double-digit percentage consolidated revenue growth year-over-year, sustainable cash flow generation and returned $44 million to shareholders through share repurchases, while continuing its advancement toward long-term financial targets. Consolidated revenue increased 12 percent, driven by strong performance across all business segments, maintaining healthy earnings growth. Gaming revenue increased to $537 million, up 15 percent compared with the prior-year period.
Light & Wonder was stung by a Sept. 24 temporary injunction granted by U.S. District Court Judge Gloria Navarro that blocked the sale, leasing and commercialization of the company’s Dragon Train-themed slot machines which Australia-based Aristocrat Technologies Inc. alleged was “a cheap knockoff” of Aristocrat’s Dragon Link and Lightning Link games.
Although Light & Wonder was ordered to pull its games and — Wilson said the company complied even though he disagreed with the ruling — it managed to replace the machines with the company’s other products.
The ruling was viewed by the company as a setback, but not a disaster and Wilson said the international casino pipeline gives Light & Wonder the opportunity to move its products to expanding floors in Macao, in the Philippines, in Japan, where MGM Resorts International is building an integrated resort in Osaka, and in the United Arab Emirates, where Wynn Resorts Ltd. is building the $3.9 billion Wynn Al Marjan Island on 115 acres in the Ras Al Khaimah emirate on the Arabian Gulf inlet of the Persian Gulf.
Casino companies also are exploring opportunities to develop casino resorts in Thailand as well.
The company just launched its newest studio in Reno to support growth initiatives well past 2025, Wilson said. Company game designers also will be attending the Best Games Workshop where designers can collaborate to experiment and innovate new game ideas for the future.
“This is the culture we are fostering and the teams are excited to have the opportunity to engage with other game developers across the organization to support the next chapter of our growth,” he said.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.