Light & Wonder will add around 10,000 installed recurring revenue units across five US states to its portfolio under a strategic acquisition of Grover Gaming’s charitable assets.
Under the deal, Light & Wonder will pay US$850 million in cash plus a four-year revenue based earn-out of up to US$200 million in cash.
Privately owned by Garrett Blackwelder, Grover Charitable Gaming has an installed base of over 10,000 leased electronic pull-tab units operating in North Dakota, Ohio, Virginia, Kentucky and New Hampshire under a recurring revenue model. The business was founded in 2013 and is described as best-in-class in all states in which it operates.
The charitable gaming sector provides licenses to operators to run select gaming products such as bingo, lottery and E-Pull tabs for the purpose of raising fund for local charities.
In its announcement, Light & Wonder said the acquisition of Grover Charitable Gaming provides several strategic and financial benefits, namely a leading position in the fast-growing charitable gaming space; expansion into another high-growth, regulated adjacency in which it is not currently a participant; a loyal customer base supported by strong customer relationships tied to in-market local teams; strong cultural alignment; and an attractive financial profile expected to be highly accretive to value and earnings.
An investor presentation also noted that E-Pull tabs, Grover Charitable Gaming’s specialty, are currently legal in 11 states compared with 39 states for other forms of charitable gaming, providing meaningful potential for expansion.
It also noted that the sector can align with the company’s cross-platform strategy.
“Light & Wonder anticipates investing in content and technology to unlock potential revenue opportunities from distributing its leading land-based content to a new customer base,” it said.
Light & Wonder President and CEO Matt Wilson explained, “Grover Gaming is a leading player in charitable gaming, a category that has experienced significant growth in recent years. This transaction complements our position as the leading cross-platform global games company by adding another compelling regulated adjacency to our profile.
“Importantly, there are exciting incremental revenue opportunities to be realized by leveraging Light & Wonder’s proven land-based gaming content to a new and loyal customer base. We look forward to continuing to partner with Grover Gaming’s customers, building on its strong dedication to customer service.”
Grover Charitable Gaming generated US$135 million in revenue in 2024, with Grover Adjusted EBITDA of US$111 million.
Light & Wonder said the transaction does not change its 2025 Consolidated Adjusted EBITDA target of US$1.4 billion.
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