In 2021, Scientific Games made the pivotal decision to divest its lottery and sports betting divisions, marking a significant transition led by Matt Wilson, who is now steering what is called Light & Wonder into a new era. The sale of the lottery operations, a core part of Scientific Games’ history as a scratchcard manufacturer, represented a decisive break from the company's past. This move, along with the sale of the sports betting business, significantly reduced debt and allowed the remaining gaming business to adopt a clear strategic focus, which many believed had been lacking for years.
The corporate rebranding further emphasizes this shift; with the lottery business departed, the gaming operations are now united under the Light & Wonder name. Matt Wilson took over as CEO, replacing Barry Cottle in October 2022.
Wilson, who has extensive experience in the industry, having previously served as CEO of gaming for Light & Wonder, articulates a straightforward vision. His goal is for the company to become the best provider of slots, table, digital, and social games, which he describes as “the leading cross-platform, global games company.” Wilson aims to achieve this by focusing on producing the highest quality games available. “That’s the mission, that’s the north star,” he stated shortly after his appointment. “That’s where we’re headed. And it’s time for us to get on and keep executing against that.”
The transformation begins with the company’s name. The branding of Light & Wonder, with its tagline “new worlds of play,” symbolizes a significant departure from the Scientific Games identity. Wilson explains, “It’s more than just a rebrand. It is a complete change of the ethos. We wanted to reach into the businesses that are left in the portfolio and pull up the things that really matter. It all comes back to the content and games.”
According to Wilson, a company name matters to three groups: investors, customers, and employees. While share performance may primarily concern investors, customers are usually more fascinated by the quality of the content than by the producer's name. However, Wilson emphasizes that employees are the most critical group, as they are responsible for designing the games and bringing the content to market.
The name Light & Wonder shares more similarities with George Lucas’ Industrial Light & Magic than it does with Scientific Games, which is now part of Disney and known for its special effects in notable franchises such as Star Wars, Marvel, and Jurassic Park. “We’re trying to call out to that next generation of creators,” says Wilson, noting that the company’s core involves mathematicians, animators, and software engineers—creative individuals. He highlights the importance of building a brand that resonates with potential new employees, particularly recent graduates who might prefer working for Light & Wonder over Scientific Games.
As part of this cultural change, Wilson has introduced a creative ethos designed to attract new talent and foster a collaborative work environment. He observes that before the sales of the betting and lottery divisions, Light & Wonder resembled a conglomerate rather than a cohesive business. “The teams didn’t talk,” he explains. “They were just very independent, there was a huge moat around each of the businesses.”
Now, teams are collaborating more closely. The igaming team works alongside gaming teams to determine the focus of their more than $200 million annual R&D budget. “What games should we be making? How do we make sure those games are relevant for the igaming, social casino, and land-based channels?” Wilson is in the process of acquiring SciPlay, indicating a commitment to integrating social gaming into their development efforts. He cites the ability to perform A/B testing with significant audience numbers as invaluable.
Light & Wonder employs initiatives like the Best Games Workshop which convenes developers across igaming, social casino, and land-based slots to brainstorm and collaborate. “They go out and play games together, ideate, and they riff off each other’s ideas,” says Wilson, recognizing the power in bringing diverse perspectives together.
Wilson’s passion for slots and casinos is fueled by his history in the industry; he began as a graduate trainee at Aristocrat. “I started working around these games when I was 22 and I’m still excited about the next batch of games coming out. There’s always this sense that the next game could be the next big thing that changes the industry. That’s always exciting.”
Despite advancements in tools and data sources that enhance the development process, Wilson returns to creativity as the essential element driving slot performance. He emphasizes the need for continuous innovation within the industry. “If we’re all making the same kinds of games, that’s a road to nowhere. You need to be building what players want to play.” He cites the classic Ford adage about consumers wanting a faster horse instead of a car, framing the importance of anticipating end-user needs. “It’s a case of looking around corners” to discover future possibilities.
In the competitive landscape of game development, smaller, agile competitors pose a risk to industry leaders. Light & Wonder utilizes its Open Gaming System (OGS) to identify and engage with innovative upstarts. The larger acquisitions from the Scientific Games era are behind them, and Wilson views OGS as a valuable merger and acquisition tool. “We’re able to see early-stage success on the OGS and spot companies building unique content that’s resonating with players,” he explains. This approach has allowed them to identify potential partnerships, as seen with Elk Studios and Lightning Box.
Wilson sees acquisitions as simplifying and aligning with Light & Wonder's mission to be the best game developer globally, stating, “We went from a world of huge complexity with lots of different businesses trying to be a Swiss army knife for all these different markets.”
The performance of Light & Wonder in the first quarter is a testament to the strategic decisions made in 2021. Revenue increased across all divisions, with record contributions noted from digital and social gaming. “I think it validates a lot of things internally,” Wilson says. “We have nearly 7,000 employees that have been on that transformation journey with us. And we’ve asked a lot of them, but it’s showing up in the numbers and that’s just so encouraging.”
He is particularly impressed with the quality of results, reporting a 17.1% revenue increase alongside a faster growth rate for EBITDA compared to revenue, and a surge in free cash flow. “It’s driving great outcomes, and it does vindicate the strategy of the three businesses belonging in the same portfolio, built around the idea of creating great content and great platforms.” Wilson argues that this demonstrates the advantages of the businesses working in concert, showing that they are greater together than their individual parts.
As Scientific Games transitions away from its former structure, this rebranding marks not only the end of one era but potentially the beginning of a trend in the industry toward a single-vertical focus. Wilson concludes, “There’s something beautiful about simplicity in a business. Everyone is in service to that— all our jobs are in service of that. We can’t sell anything, we can’t pay the paychecks without great games. We make sure everyone [in the business understands] that games are the reason we exist.
