Light & Wonder’s corporate structures, and the extension of the relationship gives us both certainty and security over the next decade, providing stability for both of the partners. We have already begun working with Entain on the next generation of hardware and in-store presence.


UK Gambling Bill changes are imminent - how disruptive do you think regulations are going to be in the near future- when much of the strategic plan for Light & Wonder is concentrated on a cross- platform approach to game supply?


Simon: Regulation is like the weather, we’ll always have it. We have to accept it as a condition of business and work with it. What is likely to happen, certainly in this next round, will be a focus upon bringing online within the same regulatory ambit as land-based.


Te framework that has governed online has a greater degree of latitude than that experienced by land-based operations and I think that difference is going to be reduced. I think we’ll see a greater degree of homogeneity between regulated environments that supports the journey towards greater convergence, because the differences between online or offline player experiences will be so much less.


Te fact that they are combined or becoming closer will be amplified by the regulatory framework and therefore, if regulation can be deemed helpful or unhelpful, it will narrow the difference between the two different types of operations. We are comfortable that there’s nothing within the regulated environment that presents a threat to our thinking or strategic direction.


Does it present any opportunities?


Simon: A lot will depend not just on what the law says, but how it is enacted and implemented. One of the challenges every regulator has is operating in isolation, particularly with a highly mobile structure as in online gaming, where you can move servers quickly, which means that the ability of individual states to create online frameworks is always challenging. From Light & Wonder’s perspective, we will always be in-line with the regulations of the jurisdictions in which we operate and we always take our social responsibility obligations very seriously to provide the best protection possible for players.


Matt Wilson (CEO of Gaming, Light & Wonder) stated that Light & Wonder expects the overall market to be fully recovered from the pandemic in shape


One thing that concerns all of us is that rampant inflation and cost of living rises will have an impact on operators’ revenues. Tus far, we haven’t seen an impact, and it remains to be seen what effect this has on the gaming industry going forward.


How big a part does leasing play in your strategy for Europe going forward - as in North America we’re seeing parity with outright sales?


Jon: During the pandemic as we sought to anticipate outcomes, we expected a shift towards leasing, but that hasn’t been the case. Europe has shown there is little to no appetite for leasing and we don’t anticipate that changing. Operators are purchasing less as we wait for full budget


and size by 2023. Does that include international markets, or is it mainly North America? What are your expectations for international markets?


Jon: I think the first half of the year has been a challenge and while Matt’s comments were focused on the US, the European market emerged from lockdown at the start of this year with operators cautious about opening their purse strings as they got back on their feet. We anticipated that they’d want to get through the summer and get back to normal. What they found was that the initial results were fantastic, but they became concerned that this was a blip and would fall-back, which hasn’t happened either. So we fully anticipate that the second half of the year will be strong. Operators recognise that they need to invest as they have ageing product having put investment on-hold during the pandemic. We anticipate the second half will be close to normality and that 2023 will be even better as operators play catch-up to replace product.


“We fully anticipate that the second half of the year will be


strong. Operators recognise that they need to invest as they


have ageing product having put investment on-hold during the pandemic. We anticipate the second half will be close to normality and that 2023 will be even better as operators play catch-up to replace product.”


allocation to return, but no one is using leasing as an alternative method of putting product on their floors at this time.


Jamie Odell outlined that the company now has a three-year strategic plan in place - something that wasn’t part of the structure in the past - what can you tell us about this plan, and how it’ll shape Light & Wonder in the future - especially as it relates to international markets?


Simon: One of the great benefits that the new team brings is a more recognisable structure to corporate governance and a degree of professionalism that was under- emphasised previously. Te three-year strategic plan reflects the change of outlook. As soon as you realise that the purpose of your business is more than servicing debt, you understand the direction and desired outcomes you’re working towards.


From an EMEA perspective, the strategic plan is a carbon-copy of the US one. It understands our target markets, sizes the opportunity, identifies the changes we need to make as a business with our offerings, either from a product, content and success criteria perceptive. Tis enables us to understand how we as a business drive growth to build, develop and evolve. All this provides a scorecard for the business, for our investors and for our customers. Returning to the theme we started with, of Light & Wonder as a “NewCo,” this is a business with a far clearer purpose, clarity as to our role within that purpose and accountability for that execution.


Does it feel like you’re in a new business?


Jon: We have seen a complete sea-change in the way we do things and our approach to being successful. It feels like we are working for a different company and for me, one of the biggest changes has been the culture. Te new leadership has brought a different culture to the company. Leading from the front, incorporating the entire globe. Te people I work with in the EMEA region are extremely positive about the new leadership and the direction the company has taken.


Simon: I echo Jon’s comment that this feels like a new business. We had Matt Wilson visit our UK offices in June. During that visit he embodied the attention, the care, the interest and fun that this new structure brings. It feels doubly new having brought the UK and EMEA together just 18 months ago, adding new markets and responsibilities for both Jon and myself. It all adds up to a sense of renaissance within the company.


P18 WIRE / PULSE / INSIGHT / REPORTS


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