Light & Wonder (L&W) has confirmed a definitive agreement to acquire the charitable gaming assets of Grover Gaming, marking a significant move into the charitable gaming market. The deal, valued at $850 million in upfront cash payments, also includes a potential four-year, revenue-based earn-out of up to $200 million. Subject to regulatory approvals and other customary conditions, the transaction is expected to finalize in the second quarter of 2025.

Grover Charitable Gaming, a subsidiary of Grover Gaming and G2 Gaming, specializes in electronic pull-tabs and currently operates over 10,000 leased units across five U.S. states: North Dakota, Ohio, Virginia, Kentucky, and New Hampshire. The company follows a recurring revenue model and has established strong relationships with charitable organizations in these states. In 2024, Grover Charitable Gaming reported unaudited revenue of $135 million and an adjusted EBITDA of $111 million.

Founded in 2013 and headquartered in Greenville, North Carolina, Grover Charitable Gaming is privately owned by Garrett Blackwelder. Under the terms of the agreement, Blackwelder will collaborate with L&W for the next three years to facilitate a seamless transition and ensure continued growth.

Strategic and Financial Implications

L&W emphasized that the acquisition aligns with its broader cross-platform strategy by entering a rapidly expanding regulated market. The deal strengthens its presence in land-based gaming while providing an opportunity to integrate its existing gaming content into a new customer segment. According to L&W President and CEO Matt Wilson, “Grover Gaming is a leading player in charitable gaming, a category that has experienced significant growth in recent years. This transaction complements our position as the leading cross-platform global games company by adding another compelling regulated adjacency to our profile.”

The company also anticipates meaningful financial benefits, expecting the acquisition to be highly accretive to earnings. L&W projects high-single-digit adjusted NPATA per share accretion in the first full calendar year post-acquisition. Furthermore, the upfront purchase price reflects a multiple of approximately 7.7x Grover Gaming’s 2024 adjusted EBITDA.

Integration and Future Plans

Upon completion of the acquisition, L&W will oversee operations by combining its workforce with Grover Gaming’s existing team. This integration is expected to benefit from strong cultural alignment and established customer relationships, particularly through Grover’s local service teams.

Blackwelder expressed appreciation for his team’s efforts and customer support, stating, “I am very thankful for all of our Grover Gaming teammates and how hard they work every day. I’m also grateful for our customers’ loyalty over the past two decades. Light & Wonder is an ideal partner for us, given our similar company cultures and dedication to innovation and customer service. We are excited to see charitable gaming taken to a new level!”

Financial Structure and Outlook

L&W plans to finance the acquisition using a combination of existing cash reserves and incremental debt financing. The company has indicated that post-acquisition, its net debt leverage ratio will remain within the target range of 2.5x to 3.5x.

Additionally, L&W reaffirmed its consolidated adjusted EBITDA target of $1.4 billion for 2025, citing continued organic growth in its existing operations. The company remains focused on expanding its footprint across multiple gaming segments while leveraging its established expertise in the land-based and iGaming sectors.