Light & Wonder books 14% 2Q26 igaming revenue increase, with quarterly record in wagers
Global gaming giant Light & Wonder saw a 26% rise in net income for 2Q26, reaching US$120 million, amongst strong growth in its Gaming and iGaming segments.
In results published on 4 August, the group indicated that its iGaming segment saw another quarter of double-digit growth, with revenue up by 14%, to US$92 million and AEBITDA increasing by 18%, to US$33 million.
The group notes that the results were “driven by continued momentum in North America, underpinned by first-party content proliferation and the expansion of our partner network.” The group furthered that “This performance was despite the increased U.K. gambling duties going into effect on April 1, 2026.” In April, the UK’s Remote Gaming Duty rose from 21% to 40%, causing a shock to the industry.
The group further noted that wagers processed through its iGaming platform in 2Q26 reached a quarterly record of US$31.3 billion.
The group’s social gaming arm, SciPlay, saw a retraction in revenue of 9% yearly during the quarter, to US$182 million, “driven by a softer social casino free-to-play market and a decline in our average monthly JACKPOT PARTY® Casino payers, partially offset by an increase in average monthly revenue per paying user. Daily active users remained flat sequentially, with AEBITDA decreasing 3% to US$72 million.
Speaking of the results Light & Wonder CEO and President Matt Wilson noted, “iGaming once again delivered double-digit growth in both revenue and AEBITDA, reflecting the resilience of our North American momentum even as we navigate headwinds from increased U.K. gaming duties, while SciPlay continued to grow its direct-to-consumer revenue. As we look toward the second half of the year, we remain focused on disciplined execution, continued investment in product innovation and talent, and progressing towards both our 2026 and 2028 financial targets.”
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The Backstory
Digital growth offsets pressure elsewhere
Light & Wonder’s latest quarter extends a pattern that has become central to the company’s investment case: faster growth in regulated igaming is helping cushion weaker conditions in social casino and absorb tax and market pressures in mature jurisdictions. The company’s reported 14% increase in second-quarter igaming revenue, alongside record wagers processed through its platform, follows a year in which the supplier increasingly positioned online casino content and aggregation as a key driver of future earnings.
The trajectory was already visible in the prior year. In the second quarter of 2025, Light & Wonder said its igaming division generated a 9% revenue increase to US$81 million, with adjusted earnings before interest, taxes, depreciation and amortization rising faster than sales. That performance came even as consolidated revenue slipped 1%, underscoring the importance of the online segment as other parts of the business moved unevenly.
The company’s broader operating model is built around using land-based casino content, proprietary studios and third-party distribution to serve regulated digital markets. That gives Light & Wonder more than one growth lever, but it also exposes the company to sharp differences among jurisdictions, from tax increases in the UK to slower licensing momentum in parts of the Middle East and regulatory uncertainty in Asia.
A record year set the baseline
The latest results are being measured against a stronger companywide base established in 2024. Light & Wonder reported record full-year revenue of US$3.2 billion, up 10%, as gaming machine sales accelerated in North America and Australia. Gaming revenue reached US$2.1 billion, helped by market share gains and investment in research and development, while SciPlay revenue rose 6% to US$821 million.
That year mattered because it showed the supplier could still grow its legacy gaming business while expanding in digital channels. Management tied the performance to a cross-platform strategy: build and buy content, distribute it across land-based and online venues and use regulated markets to increase the return on a common game library. The approach is designed to make Light & Wonder less dependent on any single vertical, although recent results show the segments are not moving in lockstep.
Online gambling revenue was still a smaller part of the company’s total revenue base in 2024, but the strategic significance was larger than its size suggested. Growth in igaming offered higher-margin expansion potential in North America and other regulated markets, while land-based relationships provided a route into new digital jurisdictions. That logic has shaped several of the company’s moves since then, including new-market licensing, studio investment and product localization.
Content pipeline remains a core bet
Light & Wonder’s online strategy depends heavily on the durability of its games pipeline. The company has used internal studios, outside partnerships and intellectual property deals to keep adding content to its aggregation network. In June 2025, before reporting second-quarter results, it launched a Wizard of Oz-themed slot in collaboration with Warner Bros., illustrating how recognizable entertainment brands remain part of its effort to drive player engagement.
The company has also invested directly in studio capacity. Its 20% equity investment in Bang Bang Games showed how Light & Wonder is using its Spark program to identify smaller developers and scale them through its global distribution network. Bang Bang, known in the UK and European markets, was positioned to expand further in North America through Light & Wonder’s reach.
That type of investment serves several purposes. It broadens the company’s content library, gives operators more frequent releases and reduces reliance on any single studio or title family. It also supports market-specific strategies. A game that works in Europe may need changes before it resonates in Brazil or the Philippines, while land-based casino brands that perform well with existing casino patrons may have less immediate appeal among players whose first exposure to gambling is online.
The company’s second-quarter performance suggests content investment has supported continued igaming momentum, particularly in North America. But the stakes are rising as competition intensifies. Suppliers are trying to secure prominent placement with operators, while operators are demanding localized content, proven retention mechanics and compliance-ready products that can move quickly across regulated markets.
New markets have required course corrections
Light & Wonder’s push into emerging regulated markets has become a test of whether its cross-platform model can travel beyond its strongest regions. In an interview on the company’s expansion strategy, Magdalena Podhorska-Okolow, vice president of new markets, described the company’s approach as one of learning quickly and adjusting rather than assuming a product that works in one jurisdiction will automatically work elsewhere. The company’s experience in the Philippines was especially instructive.
Light & Wonder became the first supplier licensed by Philippine regulator PAGCOR as the country’s online market began taking shape. The move seemed like a natural extension of its existing land-based casino relationships. But the company found that many online players were not regular visitors to casinos and therefore had less attachment to land-based game brands. That forced Light & Wonder to refine its offer, using its aggregation platform and studios such as ELK Studios and Lightning Box to better match local demand.
The Philippines experience reflects a broader reality described in Light & Wonder’s new-markets strategy: regulation creates opportunity, but gray-market histories, local operators, player habits and distribution structures can change the economics. Brazil presented a similar lesson. The company entered the newly regulated market in January 2025 but later prioritized deeper local expertise after recognizing that global operators represented only part of the opportunity and that local licensees, platforms and brands required more targeted coverage.
Those adjustments are important to the latest quarter because they show why regulated-market expansion is not just a licensing exercise. Revenue growth depends on certification, distribution, operator relationships, brand awareness and the ability to localize content without weakening global operating discipline. Markets such as South Africa, the United Arab Emirates and potentially future Asian jurisdictions offer long-term upside, but each comes with a different pace of regulatory and commercial development.
SciPlay weakness sharpens the contrast
The strength in igaming has been set against a more difficult backdrop in social casino. SciPlay, Light & Wonder’s social gaming arm, has faced softer demand and competitive pressure in free-to-play social casino games. In the second quarter of 2025, SciPlay revenue fell 2% from a year earlier, though adjusted earnings improved. Later industry data pointed to a deeper slowdown across the category.
A Jefferies report described a tough month for social casinos in June, with Light & Wonder’s social-casino operations down 9% and Jackpot Party revenue falling sharply year over year. Other titles, including Quick Hit Slots and 88 Fortunes Slots, helped offset some weakness, but the broader market was pressured by competition, changing player behavior and the rise of sweepstakes-style products.
That matters because SciPlay has historically provided scale and cash generation, helping diversify Light & Wonder beyond regulated gambling. If social casino remains soft, the company will lean more heavily on igaming and land-based gaming to deliver growth. The trade-off is that igaming offers stronger regulated-market upside but also brings tax, compliance and licensing risks that social casino did not carry in the same way.
The UK duty increase illustrates that pressure. A large tax rise can reduce profitability even when wagering volumes and revenue continue to grow. Light & Wonder’s ability to report double-digit igaming growth despite that headwind strengthens management’s argument that North American momentum, first-party content and partner expansion can outweigh market-specific drag. But the next stage will require more than revenue gains. Investors will be watching whether the company can keep margins expanding while funding product development, entering new jurisdictions and stabilizing SciPlay.
The stakes for the next phase
Light & Wonder’s recent history shows a company trying to turn a strong land-based content base into a broader digital platform. Record revenue in 2024 gave it momentum. Second-quarter 2025 results showed igaming growing despite a softer consolidated top line. Studio investments and new-market licensing have since expanded the addressable opportunity, while social casino weakness has made online casino growth more important.
The current quarter therefore is not an isolated beat. It is a signal that the company’s regulated igaming strategy is carrying more weight in the overall business. The key question is whether Light & Wonder can keep converting content, distribution and market access into durable earnings as taxes rise, competition increases and new markets demand local execution rather than simple replication of its North American playbook.
