Light & Wonder (L&W) is making a bold move into the electronic pull tab market with its $1 billion acquisition of Grover Gaming, announced on February 18. CEO Matt Wilson didn’t hold back his enthusiasm, kicking off an evening conference call with Wall Street analysts by mistakenly greeting them with a chipper “Good morning!” The excitement was clear, and for good reason—this deal signals a major expansion for the gaming giant.
A Strategic Play for Growth
Wilson described the acquisition as a “new adjacent channel” that aligns with Light & Wonder’s growth ambitions. The purchase not only brings in Grover Gaming’s established footprint but also adds a lucrative recurring-revenue business model that L&W believes will be a game-changer.
Grover currently operates 10,000 electronic pull tab machines across five U.S. states, with another six states in its sights. That kind of reach presents a major opportunity for Light & Wonder to integrate its gaming expertise into a fresh sector. Wilson emphasized that Grover’s platform could serve as a new way to market L&W games, expanding their reach beyond traditional slots and casinos.
In practical terms, this means Light & Wonder isn’t just buying a company—it’s buying a fully operational, revenue-generating network that can boost margins and cash flow.
Bringing Two Companies Under One Roof
With the acquisition, Grover employees will be absorbed into Light & Wonder’s operations, though Grover founder and CEO Garrett Blackwelder will stay on as a consultant through mid-2028. This suggests L&W values the expertise that built Grover into a growing force in the market and isn’t rushing to overhaul the company’s existing structure.
Integration will be key. Electronic pull tabs may be different from slot machines, but Wilson highlighted their similarities. By bringing L&W’s content into Grover’s ecosystem, the company expects to enhance the gaming experience and, in turn, drive higher revenues.
“This is yet another avenue for Light & Wonder to be a compounder of growth,” said CFO Oliver Chow, pointing out that Grover’s revenue had surged from $81 million in 2022 to $135 million last year. That kind of trajectory is exactly what L&W hopes to maintain.
New Markets in Sight
Minnesota and Maryland are two of the key states Grover hasn’t yet entered, and Wilson made it clear that he’s targeting them “expeditiously.” Regulatory approvals will be necessary, but L&W is eager to establish a presence there.
Minnesota poses a particular challenge, as the state’s electronic pull tab industry operates exclusively on tablets. Light & Wonder is already working on developing the required technology to enter the market. Despite the technical hurdles, Wilson sounded confident, stating, “The ROI hurdle is very low.” In other words, the investment needed to break into these states is small compared to the potential returns.
The company also sees significant potential in charitable gambling, a sector known for its steady customer base and community-driven nature. Wilson underscored its “hyper-locality,” which gives it a certain level of resilience against market fluctuations.
A High-Margin, Cash-Generating Move
One of the biggest selling points of the Grover deal is its ability to generate high margins. Wilson sees this acquisition as a way to keep “monetizing our business in an efficient way,” reinforcing Light & Wonder’s broader strategy of maximizing profitability while expanding into new areas.
L&W’s investor presentation highlighted Grover’s strong company culture, built on “humble, passionate people, effective processes, and quality products.” That stability, combined with a scalable business model, makes the acquisition look like a smart bet.
For Light & Wonder, the Grover deal isn’t just about acquiring machines—it’s about tapping into an entirely new customer base while leveraging its own expertise in gaming content. The numbers speak for themselves, and if Wilson’s excitement is anything to go by, this could be one of the company’s most significant moves in recent years.
