Light & Wonder's Aussie Game Installations: A Booming Trend
Uncertainty looms over Light & Wonder's Australian future according to J.P. Morgan analyst's assessment.
It's clear sailing ahead for Light & Wonder in the land down under. According to a J.P. Morgan analyst, Don Carducci, Light & Wonder's gaming installations are experiencing a significant uptick in Australia [1].
In the bustling state of New South Wales, the Baron cabinet and the action-packed Thunder Empire game are reportedly doing a smashing job. The soon-to-be ruling in Aristocrat Leisure's intellectual-property lawsuit is the next big hurdle for Light & Wonder [1]. Although dealer's choice on a widened discovery process is due on June 23, Carducci anticipates a favorable decision for Aristocrat [1].
Despite Lightning Gongs being the primary catalyst for slot machine growth in Australia, installations of Shenlong Unleashed have been surging for the eight consecutive month, accounting for six percent of Light & Wonder's installed base [1]. The Huff N' Even More Puff game turned out to be Light & Wonder's top performer, running at 1.8 times the house average. The follow-up acts, Huff N' More Puff and Lightning Gongs, held their own, each performing at 1.1 times the house average [1].
There's a slight chill in the air, though. Installations of Huff N' More Puff have been dropping for the fourth consecutive month, and the retirement of Jewel of the Dragon took a toll on net installations [1].
Carducci acknowledges that the Dragon Train litigation and its resulting 4,700 installations in New South Wales and Queensland through May 2025 have left a noticeable gap. As a significant driver of turnover ratio until now, the halt in installs means a missed opportunity for a mix benefit/effect [1].
Despite the temporary setback, market-share leaders Aristocrat and Konami remain dominant, but Queensland sees Light & Wonder as its king of suppliers [1]. Thunder Empire is averaging a sturdy 500 installations a month, with approximately 3,000 machines in operation across Queensland and New South Wales [1].
Looking ahead, Carducci predicts that market conditions will favor both Light & Wonder and Aristocrat as they maintain their near-duopoly position [1]. However, the ongoing tariff uncertainty and litigation overhang could cast a shadow on sentiment in the short term [1].
It's all about growth and expanding market share for Light & Wonder, and their recent acquisition of Grover Gaming is proof of that [3][4]. Their strategic moves, including a focus on Australia, have shown promise, although specific region-wise metrics are scarce [2].
The growth in Light & Wonder's business, particularly in Australia, is not limited to gaming installations as the finance sector also anticipates a significant increase due to their strategic moves [3][4]. As technology plays a crucial role in the modern gaming industry, Light & Wonder's focus on integrating advanced technologies in their games, such as Thunder Empire and Shenlong Unleashed, is expected to bolster their position in the competitive finance and technology landscape.
