Light & Wonder to acquire Grover Gaming’s charitable assets in $1.05 billion deal

Gaming technology company Light & Wonder has signed a definitive agreement to acquire the charitable gaming assets of Grover Gaming for up to $1.05 billion, expanding its presence into the fast-growing charitable gaming market.  

The all-cash deal includes an $850 million upfront payment and a potential $200 million earn-out over four years. The transaction, subject to regulatory approvals, is expected to close in the second quarter of 2025.  

Founded in 2013, North Carolina-based Grover Gaming operates more than 10,000 leased electronic pull-tab units across five U.S. states (North Dakota, Ohio, Virginia, Kentucky, and New Hampshire). The acquisition marks Light & Wonder’s entry into charitable gaming, a new regulated segment for the company.  

“Grover Gaming is a leading player in charitable gaming, a category that has experienced significant growth in recent years,” Matt Wilson, President and CEO of Light & Wonder, said in a statement. “This transaction complements our position as the leading cross-platform global games company by adding another compelling regulated adjacency to our profile.”  

For the year ending December 31, 2024, Grover Charitable Gaming generated $135 million in revenue and $111 million in adjusted EBITDA, according to preliminary figures.  

Light & Wonder expects the deal to be highly accretive to earnings, projecting high-single-digit adjusted NPATA per share growth in the first full year post-acquisition. The company plans to leverage its land-based gaming content to drive additional revenue opportunities within Grover’s established customer base.  

“I am very thankful for all of our Grover Gaming teammates and how hard they work every day,” said Garrett Blackwelder, CEO and Founder of Grover Gaming. “Light & Wonder is an ideal partner for us, given our similar company cultures and dedication to innovation and customer service. We are excited to see charitable gaming taken to a new level.”  

Blackwelder will work alongside Light & Wonder for the next three years to ensure a smooth transition.  

Light & Wonder will finance the acquisition using existing cash and incremental debt financing. The company expects its net debt leverage ratio to remain within its target range of 2.5x-3.5x post-acquisition.  

Additionally, Light & Wonder reaffirmed its 2025 $1.4 billion consolidated adjusted EBITDA target, citing continued strong organic growth across its core businesses.  

Following the deal’s closure, Light & Wonder will operate the business with a combination of Grover Gaming and Light & Wonder employees.  

The acquisition remains subject to regulatory approvals and customary closing conditions. Light & Wonder anticipates finalizing the transaction in Q2 2025, positioning itself for further expansion in the charitable gaming sector.