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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from          to        
Commission file number: 001-11693 
LW_logo_full_simpl_pos_blue_spot_Artwork.jpg
LIGHT & WONDER, INC.
(Exact name of registrant as specified in its charter)
Nevada
81-0422894
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
 
6601 Bermuda Road, Las Vegas, Nevada
89119
(Address of principal executive offices)(Zip Code)

(702) 897-7150
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $.001 par valueLNWThe Nasdaq Stock Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒   No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒   No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐   No ☒
Common stock outstanding as of May 3, 2024 was 90,137,722.


LIGHT & WONDER, INC. AND SUBSIDIARIES
INDEX TO FINANCIAL AND OTHER INFORMATION
THREE MONTHS ENDED MARCH 31, 2024
Page
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6
2

Glossary of Terms
The following terms or acronyms used in this Quarterly Report on Form 10-Q are defined below:
Term or AcronymDefinition
2023 10-K2023 Annual Report on Form 10-K filed with SEC on February 27, 2024
2028 Unsecured Notes7.000% senior unsecured notes due 2028 issued by LNWI
2029 Unsecured Notes7.250% senior unsecured notes due 2029 issued by LNWI
2031 Unsecured Notes7.500% senior unsecured notes due 2031 issued by LNWI
AEBITDAAdjusted EBITDA, our primary performance measure of profit or loss for our business segments
ASCAccounting Standards Codification
ASUAccounting Standards Update
ASXAustralian Securities Exchange
CMScasino-management system
D&Adepreciation, amortization and impairments (excluding goodwill)
Exchange ActSecurities Exchange Act of 1934, as amended
FASBFinancial Accounting Standards Board
KPIsKey Performance Indicators
L&WLight & Wonder, Inc.
LBOlicensed betting office
LNWILight and Wonder International, Inc., a wholly-owned subsidiary of L&W and successor to Scientific Games International, Inc.
LNWI Credit Agreement
That certain credit agreement, dated as of April 14, 2022, among LNWI, as the borrower, L&W, as a guarantor, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Collateral Agent and Swingline Lender, BofA Securities, Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Fifth Third Bank, National Association, Barclays Bank PLC, Citizens Bank, N.A., Goldman Sachs Bank USA, Morgan Stanley Senior Funding, Inc., Royal Bank of Canada, Truist Securities, Inc., Credit Suisse Loan Funding LLC and Macquarie Capital (USA) Inc. as Lead Arrangers and Joint Bookrunners, as amended, restated, amended and restated, supplemented or otherwise modified from time to time
LNWI RevolverRevolving credit facility with aggregate commitments of $750 million extended pursuant to the LNWI Credit Agreement
LNWI Term Loan BTerm loan facility, issued pursuant to the LNWI Credit Agreement
Notea note in the Notes to Consolidated Financial Statements in this Quarterly Report on Form 10-Q, unless otherwise indicated
Participationrefers to gaming machines provided to customers through service or leasing arrangements in which we earn revenues and are paid based on: (1) a percentage of the amount wagered less payouts; (2) fixed daily-fees; (3) a percentage of the amount wagered; or (4) a combination of (2) and (3)
R&Dresearch and development
RSUrestricted stock unit
SciPlayOur SciPlay business segment
SECSecurities and Exchange Commission
Securities ActSecurities Act of 1933, as amended
Senior Notes or Unsecured Notesrefers to the 2028 Unsecured Notes, 2029 Unsecured Notes and 2031 Unsecured Notes, collectively
SG&Aselling, general and administrative
Shufflersvarious models of automatic card shufflers, deck checkers and roulette chip sorters
SOFRSecured Overnight Financing Rate
U.S. GAAPaccounting principles generally accepted in the U.S.
U.S. jurisdictionsthe 50 states in the U.S. plus the District of Columbia, U.S. Virgin Islands and Puerto Rico
VGTvideo gaming terminal
VLTvideo lottery terminal
3

Intellectual Property Rights
All ® notices signify marks registered in the United States. © 2024 Light & Wonder, Inc. or one of its Subsidiaries. All Rights Reserved.
The MONOPOLY name and logo, the distinctive design of the game board, the four corner squares, the MR. MONOPOLY name and character, as well as each of the distinctive elements of the board, cards, and the playing pieces are trademarks of Hasbro for its property trading game and game equipment and are used with permission. © 1935, 2024 Hasbro. All Rights Reserved. Licensed by Hasbro.
007.jpg and James Bond indicia © 1962-2024 Danjaq, LLC and MGM. 007.jpg and all other James Bond related trademarks are trademarks of Danjaq, LLC. All Rights Reserved.
THE FLINTSTONES™ and all related characters and elements © & ™ Hanna-Barbera.
©2024 Playboy Enterprises International, Inc. PLAYBOY, PLAYMATE, PLAYBOY BUNNY, and the Rabbit Head Design are trademarks of Playboy Enterprises International, Inc. and used under license by Light & Wonder, Inc.
4

FORWARD-LOOKING STATEMENTS
Throughout this Quarterly Report on Form 10-Q, we make “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results or strategies and can often be identified by the use of terminology such as “may,” “will,” “estimate,” “intend,” “plan,” “continue,” “believe,” “expect,” “anticipate,” “target,” “should,” “could,” “potential,” “opportunity,” “goal,” or similar terminology. The forward-looking statements contained in this Quarterly Report on Form 10-Q are generally located in the material set forth under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” but may be found in other locations as well. These statements are based upon management’s current expectations, assumptions and estimates and are not guarantees of timing, future results or performance. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. Actual results may differ materially from those contemplated in these statements due to a variety of risks and uncertainties and other factors, including, among other things:
•our inability to successfully execute our strategy;
•slow growth of new gaming jurisdictions, slow addition of casinos in existing jurisdictions and declines in the replacement cycle of gaming machines;
•risks relating to foreign operations, including anti-corruption laws, fluctuations in currency rates, restrictions on the payment of dividends from earnings, restrictions on the import of products and financial instability;
•difficulty predicting what impact, if any, new tariffs imposed by and other trade actions taken by the U.S. and foreign jurisdictions could have on our business;
•U.S. and international economic and industry conditions, including increases in benchmark interest rates and the effects of inflation;
•public perception of our response to environmental, social and governance issues;
•the effects of health epidemics, contagious disease outbreaks and public perception thereof;
•changes in, or the elimination of, our share repurchase program;
•resulting pricing variations and other impacts of our common stock being listed to trade on more than one stock exchange;
•level of our indebtedness, higher interest rates, availability or adequacy of cash flows and liquidity to satisfy indebtedness, other obligations or future cash needs;
•inability to further reduce or refinance our indebtedness;
•restrictions and covenants in debt agreements, including those that could result in acceleration of the maturity of our indebtedness;
•competition;
•inability to win, retain or renew, or unfavorable revisions of, existing contracts, and the inability to enter into new contracts;
•risks and uncertainties of potential changes in U.K. gaming legislation, including any new or revised licensing and taxation regimes, responsible gambling requirements and/or sanctions on unlicensed providers;
•inability to adapt to, and offer products that keep pace with, evolving technology, including any failure of our investment of significant resources in our R&D efforts;
•the outcome of any legal proceedings that may be instituted following completion of the SciPlay merger;
•failure to retain key management and employees;
•unpredictability and severity of catastrophic events, including but not limited to acts of terrorism, war, armed conflicts or hostilities, the impact such events may have on our customers, suppliers, employees, consultants, business partners or operations, as well as management’s response to any of the aforementioned factors;
•changes in demand for our products and services;
•dependence on suppliers and manufacturers;
•SciPlay’s dependence on certain key providers;
•ownership changes and consolidation in the gaming industry;
•fluctuations in our results due to seasonality and other factors;
•risks as a result of being publicly traded in the United States and Australia, including price variations and other impacts relating to the secondary listing of the Company’s common stock on the ASX;
•the possibility that we may be unable to achieve expected operational, strategic and financial benefits of the SciPlay merger;
5

•security and integrity of our products and systems, including the impact of any security breaches or cyber-attacks;
•protection of our intellectual property, inability to license third-party intellectual property and the intellectual property rights of others;
•reliance on or failures in information technology and other systems;
•litigation and other liabilities relating to our business, including litigation and liabilities relating to our contracts and licenses, our products and systems, our employees (including labor disputes), intellectual property, environmental laws and our strategic relationships;
•reliance on technological blocking systems;
•challenges or disruptions relating to the completion of the domestic migration to our enterprise resource planning system;
•laws and government regulations, both foreign and domestic, including those relating to gaming, data privacy and security, including with respect to the collection, storage, use, transmission and protection of personal information and other consumer data, and environmental laws, and those laws and regulations that affect companies conducting business on the internet, including online gambling;
•legislative interpretation and enforcement, regulatory perception and regulatory risks with respect to gaming, especially internet wagering and social gaming;
•changes in tax laws or tax rulings, or the examination of our tax positions;
•opposition to legalized gaming or the expansion thereof and potential restrictions on internet wagering;
•significant opposition in some jurisdictions to interactive social gaming, including social casino gaming and how such opposition could lead these jurisdictions to adopt legislation or impose a regulatory framework to govern interactive social gaming or social casino gaming specifically, and how this could result in a prohibition on interactive social gaming or social casino gaming altogether, restrict our ability to advertise our games, or substantially increase our costs to comply with these regulations;
•expectations of shift to regulated digital gaming;
•inability to develop successful products and services and capitalize on trends and changes in our industries, including the expansion of internet and other forms of digital gaming;
•the continuing evolution of the scope of data privacy and security regulations, and our belief that the adoption of increasingly restrictive regulations in this area is likely within the U.S. and other jurisdictions;
•incurrence of restructuring costs;
•goodwill impairment charges including changes in estimates or judgments related to our impairment analysis of goodwill or other intangible assets;
•stock price volatility;
•failure to maintain adequate internal control over financial reporting;
•dependence on key executives;
•natural events that disrupt our operations, or those of our customers, suppliers or regulators; and
•expectations of growth in total consumer spending on social casino gaming.
Additional information regarding risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated in forward-looking statements is included from time to time in our filings with the SEC, including under “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q and Part I, Item 1A in our 2023 10-K. Forward-looking statements speak only as of the date they are made and, except for our ongoing obligations under the U.S. federal securities laws, we undertake no and expressly disclaim any obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.
You should also note that this Quarterly Report on Form 10-Q may contain references to industry market data and certain industry forecasts. Industry market data and industry forecasts are obtained from publicly available information and industry publications. Industry publications generally state that the information contained therein has been obtained from sources believed to be reliable, but that the accuracy and completeness of that information is not guaranteed. Although we believe industry information to be accurate, it is not independently verified by us and we do not make any representation as to the accuracy of that information. In general, we believe there is less publicly available information concerning the international gaming, social and digital gaming industries than the same industries in the U.S.
Due to rounding, certain numbers presented herein may not precisely recalculate.
6

PART I. FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements (unaudited)

LIGHT & WONDER, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share amounts)
 Three Months Ended March 31,
 20242023
Revenue:  
Services$517 $477 
Products239 193 
Total revenue756 670 
Operating expenses:  
Cost of services(1)
112 108 
Cost of products(1)
107 94 
Selling, general and administrative218 192 
Research and development62 54 
Depreciation, amortization and impairments86 101 
Restructuring and other 6 19 
Operating income165 102 
Other (expense) income:  
Interest expense(75)(75)
Other income (expense), net10 (1)
Total other expense, net(65)(76)
Net income before income taxes100 26 
Income tax (expense) benefit(18)1 
Net income82 27 
Less: Net income attributable to noncontrolling interest— 5 
Net income attributable to L&W$82 $22 
Per Share - Basic:
Net income attributable to L&W$0.91 $0.24 
Per Share - Diluted:
Net income attributable to L&W$0.88 $0.23 
Weighted average number of shares used in per share calculations:  
Basic shares
90 91 
Diluted shares
92 93 
(1) Excludes D&A.
See accompanying notes to consolidated financial statements.
7

LIGHT & WONDER, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
Three Months Ended March 31,
20242023
Net income$82 $27 
Other comprehensive (loss) income
Foreign currency translation (loss) gain, net of tax(29)13 
Derivative financial instruments unrealized gain (loss), net of tax6 (7)
Total other comprehensive (loss) income(23)6 
Total comprehensive income59 33 
Less: comprehensive income attributable to noncontrolling interest— 5 
Comprehensive income attributable to L&W$59 $28 
See accompanying notes to consolidated financial statements.
8

LIGHT & WONDER, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in millions, except par value)
 As of
March 31, 2024December 31, 2023
ASSETS
Current assets: 
Cash and cash equivalents$450 $425 
Restricted cash97 90 
Receivables, net of allowance for credit losses of $33 and $38, respectively
504 506 
Inventories175 177 
Prepaid expenses, deposits and other current assets114 113 
Total current assets1,340 1,311 
Non-current assets:
Restricted cash6 6 
Receivables, net of allowance for credit losses of $7 and $3, respectively
57 37 
Property and equipment, net246 236 
Operating lease right-of-use assets48 52 
Goodwill2,925 2,945 
Intangible assets, net568 605 
Software, net160 158 
Deferred income taxes166 142 
Other assets72 60 
Total assets$5,588 $5,552 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt$22 $22 
Accounts payable211 241 
Accrued liabilities381 404 
Income taxes payable63 29 
Total current liabilities677 696 
Deferred income taxes20 20 
Operating lease liabilities34 39 
Other long-term liabilities170 180 
Long-term debt, excluding current portion3,852 3,852 
Total liabilities4,753 4,787 
Commitments and contingencies (Note 15)
Stockholders’ equity:
Common stock, par value $0.001 per share, 199 shares authorized; 117 and 116 shares issued, respectively, and 90 shares outstanding
1 1 
Additional paid-in capital1,154 1,118 
Retained earnings762 680 
Treasury stock, at cost, 27 and 26 shares, respectively
(776)(751)
Accumulated other comprehensive loss(306)(283)
Total stockholders’ equity835 765 
Total liabilities and stockholders’ equity $5,588 $5,552 
See accompanying notes to consolidated financial statements.
9

LIGHT & WONDER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
 Three Months Ended March 31,
 20242023
Cash flows from operating activities: 
Net income$82 $27 
Adjustments to reconcile net income to net cash provided by operating activities110 138 
Changes in working capital accounts, excluding the effects of acquisition6 32 
Change in deferred income taxes and other(27)(12)
Net cash provided by operating activities171 185 
Cash flows from investing activities: 
Capital expenditures(66)(53)
Other(1)
(5)(4)
Net cash used in investing activities(71)(57)
Cash flows from financing activities: 
Payments on long-term debt— (6)
Payments of debt issuance and deferred financing costs(2)— 
Payments on license obligations(5)(12)
Purchase of L&W common stock(25)(28)
Purchase of SciPlay’s Class A common stock— (8)
Net redemptions of common stock under stock-based compensation plans and other(33)(11)
Net cash used in financing activities(65)(65)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(3)— 
Increase in cash, cash equivalents and restricted cash32 63 
Cash, cash equivalents and restricted cash, beginning of period521 967 
Cash, cash equivalents and restricted cash, end of period$553 $1,030 
Supplemental cash flow information:
Cash paid for interest$63 $63 
Income taxes paid8 9 
Supplemental non-cash transactions:
Non-cash interest expense$2 $3 
(1) The three months ended March 31, 2023 includes $3 million in cash used in discontinued operations.
See accompanying notes to consolidated financial statements.
10
LIGHT & WONDER, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(amounts in USD, table amounts in millions, except per share amounts)

(1) Description of the Business and Summary of Significant Accounting Policies
Description of the Business
We are a leading cross-platform global games company with a focus on content and digital markets. Our portfolio of revenue-generating activities primarily includes supplying game content and gaming machines, CMSs and table game products and services to licensed gaming entities; providing social casino and other mobile games, including casual gaming, to retail customers; and providing a comprehensive suite of digital gaming content, distribution platforms and player account management systems, as well as various other iGaming content and services. We report our results of operations in three business segments—Gaming, SciPlay and iGaming—representing our different products and services.
Basis of Presentation and Principles of Consolidation
The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of L&W, its wholly owned subsidiaries, and those subsidiaries in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation.
In the opinion of L&W and its management, we have made all adjustments necessary to present fairly our consolidated financial position, results of operations, comprehensive income and cash flows for the periods presented. Such adjustments are of a normal, recurring nature. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2023 10-K. Interim results of operations are not necessarily indicative of results of operations to be expected for a full year.
Significant Accounting Policies
There have been no changes to our significant accounting policies described within the Notes of our 2023 10-K.    
Computation of Basic and Diluted Net Income Attributable to L&W Per Share
Basic and diluted net income attributable to L&W per share are based upon net income attributable to L&W divided by the weighted average number of common shares outstanding during the period. Diluted net income attributable to L&W per share reflects the effect of the assumed exercise of stock options and RSUs only in the periods in which such effect would have been dilutive to net income.
For the three months ended March 31, 2024 and 2023, we included 2 million of common stock equivalents in the calculation of diluted net income attributable to L&W per share.
New Accounting Guidance
There have been no recent accounting pronouncements or changes in accounting pronouncements since those described within the Notes of our 2023 10-K that are expected to have a material impact on our consolidated financial statements.
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(2) Revenue Recognition
The following table disaggregates our revenues by type within each of our business segments:
Three Months Ended March 31,
20242023
Gaming
Gaming operations$164 $160 
Gaming machine sales205 158 
Gaming systems60 55 
Table products47 46 
Total$476 $419 
SciPlay
Mobile in-app purchases$170 $166 
Web in-app purchases and other(1)
36 21 
Total$206 $186 
iGaming$74 $65 
(1) Other represents $12 million in revenue generated via our proprietary platform during the three months ended March 31, 2024, along with advertising and other revenue, which were not material for the periods presented.
The amount of rental income revenue that is outside the scope of ASC 606 was $127 million and $117 million for the three months ended March 31, 2024 and 2023, respectively.
Contract Liabilities and Other Disclosures
The following table summarizes the activity in our contract liabilities for the reporting period:
Three Months Ended March 31, 2024
Contract liability balance, beginning of period(1)
$27 
Liabilities recognized during the period16 
Amounts recognized in revenue from beginning balance(13)
Contract liability balance, end of period(1)
$30 
(1) Contract liabilities are included within Accrued liabilities and Other long-term liabilities in our consolidated balance sheets.
The timing of revenue recognition, billings and cash collections results in billed receivables, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on our consolidated balance sheets. Other than contracts with customers with financing arrangements exceeding 12 months, revenue recognition is generally proximal to conversion to cash. The following table summarizes our balances in these accounts for the periods indicated (other than contract liabilities disclosed above):
Receivables
Contract Assets(1)
Beginning of period balance$543 $24 
End of period balance, March 31, 2024
561 24 
(1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets.
As of March 31, 2024, we did not have material unsatisfied performance obligations for contracts expected to be long-term or contracts for which we recognize revenue at an amount other than for which we have the right to invoice for goods or services delivered or performed.
(3) Business Segments
We report our operations in three business segments—Gaming, SciPlay and iGaming—representing our different products and services. A detailed discussion regarding the products and services from which each reportable business segment derives its revenue is included in Notes 3 and 4 in our 2023 10-K.
In evaluating financial performance, our Chief Operating Decision Maker (defined as our Chief Executive Officer) focuses on AEBITDA as management’s primary segment measure of profit or loss, which is described in footnote (2) to the
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below table. The accounting policies for our business segments are the same as those described within the Notes in our 2023 10-K. The following tables present our segment information:
Three Months Ended March 31, 2024
GamingSciPlayiGaming
Unallocated and Reconciling Items(1)
Total
Total revenue
$476 $206 $74 $— $756 
AEBITDA(2)
232 62 25 (38)$281 
Reconciling items to net income before income taxes:
D&A
(61)(6)(13)(6)(86)
Restructuring and other
— — (3)(3)(6)
Interest expense
(75)(75)
Other income, net
8 8 
Stock-based compensation
(22)(22)
Net income before income taxes
$100 
(1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes.
(2) AEBITDA is reconciled to net income before income taxes with the following adjustments, as applicable: (1) depreciation and amortization expense and impairment charges (including goodwill impairments); (2) restructuring and other, which includes charges or expenses attributable to: (i) employee severance; (ii) management restructuring and related costs; (iii) restructuring and integration; (iv) cost savings initiatives; (v) major litigation; and (vi) acquisition- and disposition-related costs and other unusual items; (3) interest expense; (4) gain (loss) on debt refinancing transactions; (5) change in fair value of investments and remeasurement of debt and other; (6) other income (expense), net, including foreign currency gains or losses and earnings from equity investments; and (7) stock-based compensation. AEBITDA is presented as our primary segment measure of profit or loss.
Three Months Ended March 31, 2023
GamingSciPlayiGaming
Unallocated and Reconciling Items(1)
Total
Total revenue
$419 $186 $65 $— $670 
AEBITDA(2)
206 54 23 (34)$249 
Reconciling items to net income before income taxes:
D&A
(79)(6)(11)(5)(101)
Restructuring and other(7)(1)(1)(10)(19)
Interest expense(75)(75)
Other expense, net(2)(2)
Stock-based compensation(26)(26)
Net income before income taxes
$26 
(1) Includes amounts not allocated to the business segments (including corporate costs) and reconciling items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes.
(2) AEBITDA is described in footnote (2) to the first table in this Note 3.
(4) Restructuring and Other
Restructuring and other includes charges or expenses attributable to: (i) employee severance; (ii) management restructuring and related costs; (iii) restructuring and integration; (iv) cost savings initiatives; (v) major litigation; and (vi)
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acquisition- and disposition-related costs and other unusual items. The following table summarizes pre-tax restructuring and other costs for the periods presented:
Three Months Ended March 31,
20242023
Employee severance and related$1 $9 
Strategic review and related(1)
1 4 
Contingent acquisition consideration(2)
1 — 
Restructuring, integration and other3 6 
Total$6 $19 
(1) Includes costs associated with the SciPlay merger, ASX listing, sale of discontinued operations (including ongoing separation activities), rebranding and related activities. Refer to the Notes in our 2023 10-K for more information regarding these activities.
(2) Represents contingent consideration fair value adjustment (see Note 11).
(5) Receivables, Allowance for Credit Losses and Credit Quality of Receivables
Receivables
The following table summarizes the components of current and long-term receivables, net:
As of
March 31, 2024December 31, 2023
Current:
Receivables$537 $544 
Allowance for credit losses(33)(38)
Current receivables, net504 506 
Long-term:
Receivables64 40 
Allowance for credit losses(7)(3)
Long-term receivables, net57 37 
Total receivables, net$561 $543 
Allowance for Credit Losses
We manage our receivable portfolios using both geography and delinquency as key credit quality indicators. The following table summarizes geographical delinquencies of total receivables, net:    
As of
March 31, 2024Balances over 90 days past dueDecember 31, 2023Balances over 90 days past due
Receivables:
U.S. and Canada$316 $4 $344 $13 
International285 41 240 50 
     Total receivables601 45 584 63 
Receivables allowance:
U.S. and Canada(16)(3)(17)(3)
International(24)(11)(24)(12)
Total receivables allowance(40)(14)(41)(15)
Receivables, net$561 $31 $543 $48 
Account balances are charged against the allowances after all internal and external collection efforts have been exhausted and the potential for recovery is considered remote.
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The activity in our allowance for receivable credit losses for each of the three months ended March 31, 2024 and 2023 is as follows:
20242023
TotalU.S. and CanadaInternationalTotal
Beginning allowance for credit losses$(41)$(17)$(24)$(40)
Provision(1)— (1)(1)
Charge-offs and recoveries2 1 1 1 
Allowance for credit losses as of March 31$(40)$(16)$(24)$(40)
As of March 31, 2024, 6% of our total receivables, net, were past due by over 90 days, compared to 9% as of December 31, 2023.
Credit Quality of Receivables
We have certain concentrations of outstanding receivables in international locations that impact our assessment of the credit quality of our receivables. We monitor the macroeconomic and political environment in each of these locations in our assessment of the credit quality of our receivables. The international customers with significant concentrations (generally deemed to be exceeding 10%) of our receivables with terms longer than one year are in the Latin America region (“LATAM”) and are primarily comprised of Mexico, Peru and Argentina. The following table summarizes our LATAM receivables:
As of March 31, 2024
TotalCurrentBalances over 90 days past due
Receivables$61 $47 $14 
Allowance for credit losses(18)(11)(7)
Receivables, net$43 $36 $7 
We continuously review receivables and, as information concerning credit quality and/or overall economic environment arises, reassess our expectations of future losses and record an incremental reserve if warranted at that time. Our current allowance for credit losses represents our current expectation of credit losses; however, future expectations could change as international unrest or other macro-economic factors impact the financial stability of our customers.
The fair value of receivables is estimated by discounting expected future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings and remaining maturities. As of March 31, 2024 and December 31, 2023, the fair value of receivables, net, approximated the carrying value due to contractual terms of receivables generally being less than 24 months.
(6) Inventories
Inventories consisted of the following:
 As of
 March 31, 2024December 31, 2023
Parts and work-in-process$126 $113 
Finished goods49 64 
Total inventories$175 $177 
Parts and work-in-process include parts for gaming machines and our finished goods inventory primarily consist of gaming machines for sale.
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(7) Property and Equipment, net
Property and equipment, net consisted of the following:
As of
March 31, 2024December 31, 2023
Land$6 $6 
Buildings and leasehold improvements59 59 
Gaming machinery and equipment738 718 
Furniture and fixtures27 26 
Construction in progress10 7 
Other property and equipment96 94 
Less: accumulated depreciation(690)(674)
Total property and equipment, net$246 $236 
Depreciation expense is excluded from Cost of services, Cost of products and Other operating expenses and is separately presented within D&A.
Three Months Ended March 31,
20242023
Depreciation expense$31 $28 
(8) Intangible Assets, net and Goodwill
Intangible Assets, net
The following tables present certain information regarding our intangible assets as of March 31, 2024 and December 31, 2023.
As of
March 31, 2024December 31, 2023
Gross Carrying
Value		Accumulated
Amortization		Net BalanceGross Carrying
Value		Accumulated
Amortization		Net Balance
Amortizable intangible assets:   
Customer relationships$901 $(581)$320 $904 $(567)$337 
Intellectual property
942 (779)163 947 (771)176 
Licenses292 (224)68 290 (217)73 
Brand names129 (121)8 129 (120)9 
Trade names163 (158)5 163 (157)6 
Patents and other11 (7)4 11 (7)4 
Total intangible assets$2,438 $(1,870)$568 $2,444 $(1,839)$605 
The following reflects intangible amortization expense included within D&A:
Three Months Ended March 31,
20242023
Amortization expense$37 $58 
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Goodwill
The table below reconciles the change in the carrying value of goodwill, by business segment, for the period from December 31, 2023 to March 31, 2024.
Gaming(1)
SciPlayiGamingTotals
Balance as of December 31, 2023
$2,388 $210 $347 $2,945 
Foreign currency adjustments(8)— (12)(20)
Balance as of March 31, 2024
$2,380 $210 $335 $2,925 
(1) Accumulated goodwill impairment charges for the Gaming segment as of March 31, 2024 were $989 million.
(9) Software, net
Software, net consisted of the following:
 As of
 March 31, 2024December 31, 2023
Software $1,101 $1,083 
Accumulated amortization(941)(925)
Software, net$160 $158 
The following reflects amortization of software included within D&A:
Three Months Ended March 31,
20242023
Amortization expense$18 $15 
(10) Long-Term Debt
The following table reflects our outstanding debt (in order of priority and maturity):
As of
March 31, 2024December 31, 2023
 Final MaturityRate(s)Face ValueUnamortized debt discount/premium and deferred financing costs, netBook ValueBook Value
Senior Secured Credit Facilities:
LNWI Revolver2027variable$— $— $— $— 
LNWI Term Loan B2029variable2,167 (26)2,141 2,141 
LNWI Senior Notes:
2028 Unsecured Notes20287.000%700 (6)694 694 
2029 Unsecured Notes20297.250%500 (5)495 495 
2031 Unsecured Notes20317.500%550 (7)543 543 
Other——1 — 1 1 
Total long-term debt outstanding$3,918 $(44)$3,874 $3,874 
Less: current portion of long-term debt(22)(22)
Long-term debt, excluding current portion$3,852 $3,852 
Fair value of debt(1)
$3,963 
(1) Fair value of our fixed rate and variable interest rate debt is classified within Level 2 in the fair value hierarchy and has been calculated based on the quoted market prices of our securities.
17

LNWI Term Loan B Repricing
On January 16, 2024, we amended the LNWI Credit Agreement and reduced the applicable margin on the LNWI Term Loan B. Following the amendment, the interest rate for the Term Loan B is either (i) the Adjusted Term SOFR Rate (as defined in the LNWI Credit Agreement) plus 2.75% per annum or (ii) a base rate plus 1.75% per annum.
We were in compliance with the financial covenants under all debt agreements as of March 31, 2024 (for information regarding our financial covenants of all debt agreements, see Note 15 in our 2023 10-K).
For additional information regarding the terms of our credit facilities and Senior Notes, see Note 15 in our 2023 10-K.
(11) Fair Value Measurements
The fair value of our financial assets and liabilities is determined by reference to market data and other valuation techniques as appropriate. We believe the fair value of our financial instruments, which are principally cash and cash equivalents, restricted cash, receivables, other current assets, accounts payable and accrued liabilities, approximates their recorded values. Our assets and liabilities measured at fair value on a recurring basis are described below.
Derivative Financial Instruments
As of March 31, 2024, we held the following derivative instruments that were accounted for pursuant to ASC 815:
Interest Rate Swap Contracts
We use interest rate swap contracts as described below to manage exposure to interest rate fluctuations by reducing the uncertainty of future cash flows on a portion of our variable rate debt.
In April 2022, we entered into interest rate swap contracts to hedge a portion of our interest expense associated with our variable rate debt to effectively fix the interest rate that we pay. These interest rate swap contracts were designated as cash flow hedges under ASC 815. We pay interest at a weighted-average fixed rate of 2.8320% and receive interest at a variable rate equal to one-month Chicago Mercantile Exchange Term SOFR. The total notional amount of these interest rate swaps was $700 million as of March 31, 2024. These hedges mature in April 2027.
All gains and losses from these hedges are recorded in other comprehensive income (loss) until the future underlying payment transactions occur. Any realized gains or losses resulting from the hedges are recognized (together with the hedged transaction) as interest expense. We estimate the fair value of our interest rate swap contracts by discounting the future cash flows of both the fixed rate and variable rate interest payments based on market yield curves. The inputs used to measure the fair value of our interest rate swap contracts are categorized as Level 2 in the fair value hierarchy as established by ASC 820.
The following table shows the gain and interest income on our interest rate swap contracts:
Three Months Ended March 31,
20242023
Gain (loss) recorded in accumulated other comprehensive loss, net of tax$6 $(7)
Interest income recorded related to interest rate swap contracts4 3 
We do not expect to reclassify material amounts from accumulated other comprehensive loss to interest expense in the next twelve months.
The following table shows the effect of interest rate swap contracts designated as cash flow hedges on interest expense in the consolidated statements of income:
Three Months Ended March 31,
20242023
Total interest expense which reflects the effects of cash flow hedges$(75)$(75)
Hedged item(5)(5)
Derivative designated as hedging instrument9 8 
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The following table shows the fair value of our hedges:
As of
Balance Sheet Line Item
March 31, 2024December 31, 2023
Interest rate swapsOther assets$28 $20 
Contingent Acquisition Consideration Liabilities
In connection with our acquisitions, we have recorded certain contingent consideration liabilities (including redeemable non-controlling interest), of which the values are primarily based on reaching certain earnings-based metrics. The related liabilities were recorded at fair value on their respective acquisition dates as a part of the consideration transferred and are remeasured each reporting period (other than for redeemable non-controlling interest, which is measured based on its redemption value). The inputs used to measure the fair value of our liabilities are categorized as Level 3 in the fair value hierarchy.
The table below reconciles the change in the contingent acquisition consideration liabilities (including deferred purchase price) for the period from December 31, 2023 to March 31, 2024.
TotalIncluded in Accrued LiabilitiesIncluded in Other Long-Term Liabilities
Balance as of December 31, 2023
$59 $39 $20 
Payments(1)
Fair value adjustments(1)
1 
Other adjustments(2)
(5)
Balance as of March 31, 2024
$54 $41 $13 
(1) Amount included in Restructuring and other (see Note 4).
(2) Represents extinguishment of $5 million in redeemable non-controlling interest liability associated with SciPlay’s acquisition of Alictus Yazilim Anonim Şirketi in 2022, as specified financial targets for the second year were not met. The gain was recorded in other income (expense), net in our consolidated statements of income.
(12) Stockholders’ Equity
Changes in Stockholders’ Equity
The following tables present certain information regarding our stockholders’ equity as of March 31, 2024 and 2023:
Three Months Ended March 31, 2024
Common StockAdditional Paid in CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive LossTotal
January 1, 2024$1 $1,118 $680 $(751)$(283)$765 
Settlement of liability awards— 65 — — — 65 
Vesting of RSUs, net of tax withholdings and other— (43)— — — (43)
Purchase of treasury stock— — — (25)— (25)
Stock-based compensation— 14 — — — 14 
Net income— — 82 — — 82 
Other comprehensive loss— — — — (23)(23)
March 31, 2024$1 $1,154 $762 $(776)$(306)$835 
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Three Months Ended March 31, 2023
 Common StockAdditional Paid in CapitalAccumulated LossTreasury StockAccumulated Other Comprehensive LossNoncontrolling InterestTotal
January 1, 2023$1 $1,370 $517 $(580)$(318)$171 $1,161 
Settlement of liability awards— 25 — — — — 25 
Vesting of RSUs, net of tax withholdings and other— (14)— — — — (14)
Purchase of treasury stock— — — (28)— — (28)
Purchase of SciPlay’s Class A common stock— (8)— — — — (8)
Stock-based compensation— 15 — — — — 15 
Net income— — 22 — — 5 27 
Other comprehensive income— — — — 6 — 6 
March 31, 2023$1 $1,388 $539 $(608)$(312)$176 $1,184 
Stock-based Compensation
The following reflects total stock-based compensation expense recognized under all programs:
Three Months Ended March 31,
20242023
Related to L&W RSUs$22 $19 
Related to SciPlay RSUs— 7 
   Total(1)
$22 $26 
(1) Includes $8 million and $11 million of stock-based compensation classified as liability awards as of March 31, 2024 and 2023, respectively.
Restricted Stock Units
A summary of the changes in RSUs outstanding under our equity-based compensation plans during the three months ended March 31, 2024 is presented below:
Number of Restricted Stock UnitsWeighted Average Grant Date Fair Value
Unvested RSUs as of December 31, 2023
2.3 $55.53 
Granted1.3 $99.65 
Vested(1.2)$73.52 
Cancelled— $49.73 
Unvested RSUs as of March 31, 2024
2.4 $71.10 
The weighted-average grant date fair value of RSUs granted during the three months ended March 31, 2024 and 2023 was $99.65 and $56.93, respectively. The fair value of each RSU grant is based on the market value of our common stock at the time of grant. As of March 31, 2024, we had $144 million of unrecognized stock-based compensation expense relating to unvested RSUs amortized over a weighted-average period of approximately 1.5 years. The fair value at vesting date of RSUs vested during the three months ended March 31, 2024 and 2023 was $124 million and $44 million, respectively.
Share Repurchase Program
On March 1, 2022, our Board of Directors approved a share repurchase program under which the Company is authorized to repurchase, from time to time through February 25, 2025, up to an aggregate amount of $750 million of shares of our outstanding common stock. During the three months ended March 31, 2024, we repurchased approximately 0.2 million shares of common stock under the program at an aggregate cost of $25 million (including excise tax).
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(13) Income Taxes
We consider new evidence (both positive and negative) at each reporting date that could affect our view of the future realization of deferred tax assets. We evaluate information such as historical financial results, historical taxable income, projected future taxable income, expected timing of the reversals of existing temporary differences and available prudent and feasible tax planning strategies in our analysis. Based on the available evidence, valuation allowances in certain U.S. and non-U.S. jurisdictions remain consistent as of March 31, 2024.
Our income tax (including discrete items) was an expense of $18 million and a benefit of $1 million for the three months ended March 31, 2024 and 2023, respectively. For the three months ended March 31, 2024, our effective tax rate differs from the U.S. statutory rate of 21% primarily as a result of tax benefits related to equity compensation. In all periods, we recorded tax expense relative to pre-tax earnings in jurisdictions without valuation allowances.
(14) Leases
Our total operating lease expense was $7 million and $6 million for the three months ended March 31, 2024, and 2023, respectively. The total amount of variable and short-term lease payments was immaterial for all periods presented.
Supplemental balance sheet and cash flow information related to operating leases is as follows:
As of
March 31, 2024December 31, 2023
Operating lease right-of-use assets$48 $52 
Accrued liabilities19 19 
Operating lease liabilities34 39 
Total operating lease liabilities$53 $58 
Weighted average remaining lease term, years34
Weighted average discount rate6 %6 %
Three Months Ended March 31,
20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$6 $5 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases$1 $— 
Lease liability maturities:
Remainder of 20242025202620272028ThereafterLess Imputed InterestTotal
Operating leases$15 $18 $13 $7 $4 $1 $(5)$53 
As of March 31, 2024, we did not have material additional operating leases that have not yet commenced.
(15) Litigation
We are involved in various legal proceedings, including those discussed below. We record an accrual for legal contingencies when it is both probable that a liability has been incurred and the amount or range of the loss can be reasonably estimated (although, as discussed below, there may be an exposure to loss in excess of the accrued liability). We evaluate our accruals for legal contingencies at least quarterly and, as appropriate, establish new accruals or adjust existing accruals to reflect (1) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings and other relevant events and developments, (2) the advice and analyses of counsel and (3) the assumptions and judgment of management. Legal costs associated with our legal proceedings are expensed as incurred. We had accrued liabilities of $11 million and $12 million for all of our legal matters that were contingencies as of March 31, 2024 and December 31, 2023, respectively.
Substantially all of our legal contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss involves a series of complex judgments about future events. Consequently, the ultimate outcomes of our legal contingencies could result in losses in excess of amounts we have accrued.
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We may be unable to estimate a range of possible losses for some matters pending against us or our subsidiaries, even when the amount of damages claimed against us or our subsidiaries is stated because, among other things: (1) the claimed amount may be exaggerated or unsupported; (2) the claim may be based on a novel legal theory or involve a large number of parties; (3) there may be uncertainty as to the likelihood of a class being certified or the ultimate size of the class; (4) there may be uncertainty as to the outcome of pending appeals or motions; (5) the matter may not have progressed sufficiently through discovery or there may be significant factual or legal issues to be resolved or developed; and/or (6) there may be uncertainty as to the enforceability of legal judgments and outcomes in certain jurisdictions. Other matters have progressed sufficiently that we are able to estimate a range of possible loss. For those legal contingencies disclosed below, and those related to the previously disclosed settlement agreement entered into in February 2015 with SNAI S.p.a. (“SNAI”), as to which a loss is reasonably possible, whether in excess of a related accrued liability or where there is no accrued liability, and for which we are able to estimate a range of possible loss, the current estimated range is up to approximately $13 million in excess of the accrued liabilities (if any) related to those legal contingencies. This aggregate range represents management’s estimate of additional possible loss in excess of the accrued liabilities (if any) with respect to these matters based on currently available information, including any damages claimed by the plaintiffs, and is subject to significant judgment and a variety of assumptions and inherent uncertainties. For example, at the time of making an estimate, management may have only preliminary, incomplete, or inaccurate information about the facts underlying a claim; its assumptions about the future rulings of the court or other tribunal on significant issues, or the behavior and incentives of adverse parties, regulators, indemnitors or co‑defendants, may prove to be wrong; and the outcomes it is attempting to predict are often not amenable to the use of statistical or other quantitative analytical tools. In addition, from time to time an outcome may occur that management had not accounted for in its estimate because it had considered that outcome to be remote. Furthermore, as noted above, the aggregate range does not include any matters for which we are not able to estimate a range of possible loss. Accordingly, the estimated aggregate range of possible loss does not represent our maximum loss exposure. Any such losses could have a material adverse impact on our results of operations, cash flows or financial condition. The legal proceedings underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate.
Colombia Litigation
Our subsidiary, LNWI, owned a minority interest in Wintech de Colombia S.A., or Wintech (now liquidated), which formerly operated the Colombian national lottery under a contract with Empresa Colombiana de Recursos para la Salud, S.A. (together with its successors, “Ecosalud”), an agency of the Colombian government. The contract provided for a penalty against Wintech, LNWI and the other shareholders of Wintech of up to $5 million if certain levels of lottery sales were not achieved. In addition, LNWI delivered to Ecosalud a $4 million surety bond as a further guarantee of performance under the contract. Wintech started the instant lottery in Colombia but, due to difficulties beyond its control, including, among other factors, social and political unrest in Colombia, frequently interrupted telephone service and power outages, and competition from another lottery being operated in a province of Colombia that we believe was in violation of Wintech’s exclusive license from Ecosalud, the projected sales level was not met for the year ended June 30, 1993.
In 1993, Ecosalud issued a resolution declaring that the contract was in default. In 1994, Ecosalud issued a liquidation resolution asserting claims for compensation and damages against Wintech, LNWI and other shareholders of Wintech for, among other things, realization of the full amount of the penalty, plus interest, and the amount of the bond. LNWI filed separate actions opposing each resolution with the Tribunal Contencioso of Cundinamarca in Colombia (the “Tribunal”), which upheld both resolutions. LNWI appealed each decision to the Council of State. In May 2012, the Council of State upheld the contract default resolution, which decision was notified to us in August 2012. In October 2013, the Council of State upheld the liquidation resolution, which decision was notified to us in December 2013.
In July 1996, Ecosalud filed a lawsuit against LNWI in the U.S. District Court for the Northern District of Georgia asserting many of the same claims asserted in the Colombia proceedings, including breach of contract, and seeking damages. In March 1997, the District Court dismissed Ecosalud’s claims. Ecosalud appealed the decision to the U.S. Court of Appeals for the Eleventh Circuit. The Court of Appeals affirmed the District Court’s decision in 1998.
In June 1999, Ecosalud filed a collection proceeding against LNWI to enforce the liquidation resolution and recover the claimed damages. In May 2013, the Tribunal denied LNWI’s merit defenses to the collection proceeding and issued an order of payment of approximately 90 billion Colombian pesos, or approximately $30 million, plus default interest (potentially accrued since 1994 at a 12% statutory interest rate). LNWI filed an appeal to the Council of State, and on December 10, 2020, the Council of State issued a ruling affirming the Tribunal’s decision. On December 16, 2020, LNWI filed a motion for clarification of the Council of State’s ruling, which was denied on April 15, 2021. On April 22, 2021, LNWI filed a motion for reconsideration relating to that decision, which the Council of State denied on February 21, 2022. On May 24, 2022, the case was transferred from the Council of State to the Tribunal for further proceedings. On August 18, 2022, LNWI filed a constitutional challenge to the Council of State’s December 10, 2020 decision with that court, which was denied on October 7, 2022. On December 7, 2022, LNWI filed an appeal with the Council of State from the denial of the constitutional challenge,
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which was denied on May 24, 2023. On June 28, 2023, the Colombian Constitutional Court received the record of the constitutional appeal for further consideration, and on September 26, 2023, that court selected LNWI’s constitutional appeal for further consideration. On April 25, 2024, LNWI was notified that, by means of a decision dated April 5, 2024, a three-judge panel of the Colombian Constitutional Court denied LNWI’s constitutional appeal. On April 30, 2024, LNWI filed a motion to have that panel ruling declared null and void by the full Chamber of the Colombian Constitutional Court.
LNWI believes it has various defenses, including on the merits, against Ecosalud’s claims. Although we believe these claims will not result in a material adverse effect on our consolidated results of operations, cash flows or financial position, it is not feasible to predict the final outcome, and we cannot assure that these claims will not ultimately be resolved adversely to us or result in material liability.
TCS John Huxley Matter
On March 15, 2019, TCS John Huxley America, Inc., TCS John Huxley Europe Ltd., TCS John Huxley Asia Ltd., and Taiwan Fulgent Enterprise Co., Ltd. brought a civil action in the United States District Court for the Northern District of Illinois against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. and South African patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold to regulated casinos in the United States. On April 10, 2019, the defendants filed a motion to dismiss the plaintiffs’ complaint with prejudice. On April 25, 2019, the district court denied the defendants’ motion to dismiss without prejudice pursuant to the court’s local rules, after the plaintiffs advised that they intended to file an amended complaint. The plaintiffs filed their amended complaint on May 3, 2019, and on May 22, 2019, the defendants filed a motion to dismiss the plaintiffs’ amended complaint with prejudice. On March 20, 2020, the district court denied the defendants’ motion to dismiss the plaintiffs’ amended complaint, and defendants filed an answer to the plaintiffs’ amended complaint on June 19, 2020. On June 3, 2020, the trial court granted the defendants’ request to bifurcate proceedings in the case, with discovery to occur first into the statute of limitations and release defenses asserted by the defendants in their motion to dismiss, before proceeding into broader discovery. The trial court set a September 18, 2020, deadline for the parties to complete discovery relating to the statute of limitations and release defenses. On October 28, 2020, the court issued an order extending until January 15, 2021 the deadline for the parties to complete discovery relating to the statute of limitations defense. On February 9, 2021, the defendants filed a motion for summary judgment on their statute of limitations defense, addressing whether plaintiffs had actual knowledge of their claims prior to the start of the limitations period. The district court denied that motion for summary judgment on September 20, 2021. On January 13, 2023, the district court entered an order requiring, among other things, that the plaintiffs make a formal written settlement demand by January 20, 2023, that the defendants respond to that demand in writing by January 27, 2023, and that the parties file a status report by January 31, 2023 confirming that they have complied with the district court’s order. On January 31, 2023, the parties filed a joint status report confirming that they have complied with the district court’s order to make and respond to a formal written demand. Discovery closed on June 1, 2023. On June 30, 2023, the defendants filed a motion for summary judgment. On March 28, 2024, the court issued an order granting in part and denying in part defendants’ motion for summary judgment. On April 30, 2024, the court issued an order setting the matter for a jury trial starting on May 5, 2025. Due to the complexity of the plaintiffs’ claims, and the unpredictability of the outcome of the proceedings in the district court, or any appeal therefrom, we are unable at this time to estimate a range of reasonably possible losses, or any amount within such a range, above the amount we have recorded for this matter, which is the minimum amount of reasonably possible loss.
Tonkawa Tribe Matter
On September 3, 2020, the Tonkawa Tribe of Indians of Oklahoma d/b/a Tonkawa Enterprises filed a putative class action complaint in the United States District Court for the District of Nevada against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. On October 5, 2020, the plaintiff filed a first amended complaint to add Cow Creek Band of Umpqua Tribe of Indians and the Umpqua Indian Development Corp., d/b/a Seven Feathers Casino as a plaintiff. On October 26, 2020, the plaintiffs filed a second amended complaint. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for card shufflers sold or leased to regulated casinos in the United States. The plaintiffs seek to represent a putative class of all regulated United States casinos directly leasing or purchasing card shufflers from the defendants on or after April 1, 2009. The complaint seeks unspecified money damages, the award of plaintiff’s costs of suit, including reasonable attorneys’ fees and expert fees, and the award of pre-judgment and post-judgment interest. On November 19, 2020, the defendants filed a motion to dismiss plaintiffs’ second amended complaint or, in the alternative, to compel arbitration of plaintiffs’ claims. On November 20, 2020, Plaintiffs filed a motion for partial summary judgment, seeking a finding that defendants are collaterally estopped from re-litigating issues litigated in the 2018 litigation versus Shuffle Tech International Corp., Aces Up Gaming, and Poydras-Talrick Holdings. On August 27, 2021, the Nevada district court entered an order transferring the lawsuit to the United States District Court for the Northern District of Illinois. On
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May 19, 2022, the Illinois district court granted defendants’ motion to compel arbitration of plaintiffs’ individual claims; stayed all proceedings in the lawsuit pending resolution of the arbitral process; and accordingly dismissed all pending motions without prejudice as moot. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them.
Giuliano and Rancho’s Club Casino Matter
On September 4, 2020, Alfred T. Giuliano, as liquidation trustee for RIH Acquisition NJ, LLC d/b/a The Atlantic Club Casino Hotel filed a putative class action complaint in the United States District Court for the Northern District of Illinois against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The plaintiffs seek to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the Defendants, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the court to treble, the award of plaintiff’s costs of suit, including attorneys’ fees, and the award of pre-judgment and post-judgment interest. On September 8, 2020, Rancho’s Club Casino, Inc., d/b/a Magnolia House Casino filed a putative class action complaint in the United States District Court for the Northern District of Illinois against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. In the complaint, the plaintiff asserts federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiff alleges that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The plaintiff seeks to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the defendants, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the court to treble, the award of plaintiff’s costs of suit, including attorneys’ fees, and the award of pre-judgment and post-judgment interest.
On October 29, 2020, the trial court consolidated the Giuliano and Rancho’s Club Casino matters. On October 30, 2020, the plaintiffs in the consolidated action filed a first amended consolidated complaint. On November 9, 2020, the defendants filed a motion to dismiss the plaintiffs’ first amended consolidated complaint, and also filed a motion to compel arbitration of plaintiff Alfred T. Giuliano’s individual claims. On May 19, 2022, the Illinois district court granted defendants’ motion to compel arbitration; stayed all proceedings in the lawsuit pending resolution of the arbitral process; and accordingly dismissed all pending motions without prejudice. On May 31, 2022, defendants filed a motion to lift the stay of the lawsuit for the limited purpose of amending the court’s May 19, 2022 order to confirm that plaintiff Alfred T. Giuliano must proceed to arbitration on an individual basis rather than a class-wide basis. On June 10, 2022, plaintiff Alfred T. Giuliano filed a notice of voluntary dismissal without prejudice, and the court therefore denied as moot defendants’ motion to lift the stay in an order entered on March 28, 2023. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the consolidated lawsuit are without merit, and intend to vigorously defend against them.
In re Automatic Card Shufflers Litigation Matter
On April 2, 2021, Casino Queen, Inc. and Casino Queen Marquette, Inc. filed a putative class action complaint in the United States District Court for the Northern District of Illinois against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The plaintiffs seek to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the defendants, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the court to treble, the award of plaintiffs’ costs of suit, including attorneys’ fees, and the award of pre-judgment and post-judgment interest. On June 11, 2021, the defendants filed a motion to dismiss plaintiffs’ complaint, which the court denied on May 19, 2022. Discovery closed on December 1, 2023. On February 16, 2024, the defendants filed a motion for summary judgment, which is pending. Also on February 16, 2024, plaintiffs filed a motion for partial summary judgment and a motion for class certification, which are pending. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them.
Mohawk Gaming Enterprises Matter
On November 9, 2020, Mohawk Gaming Enterprises LLC, d/b/a Akwesasne Mohawk Casino Resort, filed a demand for a putative class arbitration before the American Arbitration Association against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. (“Respondents”). In the complaint, the claimant asserts federal antitrust claims arising
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from the respondents’ procurement of particular U.S. patents. The claimant alleges that the respondents used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The claimant seeks to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the respondents, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the arbitration panel to treble, and the award of claimant’s costs of suit, including attorneys’ fees. Respondents filed their answering statement on December 9, 2020. On October 29, 2021, the claimant filed a memorandum in support of class arbitration, which Respondents opposed on December 3, 2021. On February 8, 2022, the Arbitrator issued a clause construction award, finding that the arbitration could proceed on behalf of a class or classes. On February 11, 2022, Respondents filed a petition to vacate the award in the New York Supreme Court. The Court denied Respondents’ petition on August 9, 2022, and on August 16, 2022, Respondents appealed to the New York Appellate Division, First Department, which denied Respondents’ appeal on June 22, 2023. On April 15, 2022, Respondents filed a motion to dismiss the claimant’s complaint, which the Arbitrator denied on July 26, 2022. Discovery closed on December 1, 2023. On February 16, 2024, the respondents filed a motion for summary judgment, which is pending. Also on February 16, 2024, claimant filed a motion for partial summary judgment and a motion for class certification, which are pending. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.
Boorn Matter
On September 15, 2022, plaintiff Hannelore Boorn filed a putative class action against L&W, SciPlay Corporation, and Appchi Media Ltd. in the Fayette Circuit Court of the Commonwealth of Kentucky. In her complaint, plaintiff sought to represent a putative class of all persons in Kentucky who, within the past five years, purchased and allegedly lost $5.00 or more worth of virtual coins, in a 24-hour period, playing SciPlay’s online social casino games. The complaint asserted claims for alleged violations of Kentucky’s “recovery of gambling losses” statute and for unjust enrichment, and sought unspecified money damages, the award of reasonable attorneys’ fees and costs, pre- and post-judgment interest, and injunctive and/or other declaratory relief. On October 18, 2022, defendants removed the action to the United States District Court for the Eastern District of Kentucky. On October 26, 2022, plaintiff filed a notice voluntarily dismissing the lawsuit without prejudice. On October 27, 2022, the district court entered an order dismissing the lawsuit. On November 17, 2022, claimant Hannelore Boorn filed an arbitration demand against respondents L&W, SciPlay Corporation, and Appchi Media Ltd. before the American Arbitration Association, pursuant to which she seeks declaratory judgments that (1) SciPlay’s online social casino games constitute gambling under Kentucky law, and (2) SciPlay’s terms of service are void under Kentucky law. On January 12, 2023, respondents filed their answering statement to plaintiff’s arbitration demand. On February 2, 2024, claimant filed a dispositive motion seeking a ruling that SciPlay’s terms of service are void under Kentucky law and that claimant’s claims are not arbitrable. On February 2, 2024, respondents filed a motion for summary disposition seeking dismissal of claimant’s claims. Both motions are pending. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.
Allah Beautiful Matter
On December 19, 2022, claimant Prince Imanifest Allah Beautiful filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The demand asserts claims for alleged violations of New Jersey’s anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by New Jersey players of SciPlay’s online social casino games other than the claimant. On March 7, 2023, respondent filed its answering statement to claimant’s arbitration demand. On March 4, 2024, respondent filed a motion to dismiss the claimant’s arbitration demand, which the Arbitrators denied on April 24, 2024. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.
Sprinkle Matter
On December 12, 2022, claimant Matthew Sprinkle filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The demand asserts claims for alleged violations of Ohio’s anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Ohio players of SciPlay’s online social casino games other than the claimant. On March 7, 2023, respondent filed its answering statement to claimant’s arbitration demand. On March 4, 2024, respondent filed a motion to dismiss the claimant’s arbitration demand, which the Arbitrators denied on April 24, 2024. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.
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Sornberger Matter
On March 8, 2023, plaintiff Andrea Sornberger filed a complaint against SciPlay Corporation and SciPlay Games, LLC in the Circuit Court of the Franklin County, Alabama. The complaint asserts claims for alleged violations of Alabama anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Alabama players of SciPlay’s online social casino games other than the plaintiff, the award of interests and costs, and injunctive and other relief. On April 12, 2023, defendants removed the action to the United States District Court for the Northern District of Alabama. On August 24, 2023, plaintiff voluntarily dismissed her complaint without prejudice, and re-filed it in the Circuit Court of Franklin County, Alabama. On September 27, 2023, defendants removed the re-filed action to the United States District Court for the Northern District of Alabama. On October 26, 2023, plaintiff filed a motion to remand the action to the Circuit Court of Franklin County, Alabama, which is pending. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them.
Roberts Matter
On July 25, 2023, claimant Donovan Roberts filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The demand asserts claims for alleged violations of Kentucky’s anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Kentucky players of SciPlay’s online social casino games other than the claimant. On October 6, 2023, respondent filed its answering statement to claimant’s arbitration demand. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.
Ebersole Matter
On July 25, 2023, claimant Christopher Ebersole filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The demand asserts claims for alleged violations of Ohio’s anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Ohio players of SciPlay’s online social casino games other than the claimant. On October 12, 2023, respondent filed its answering statement to claimant’s arbitration demand. On April 1, 2024, respondent filed a motion to dismiss the claimant’s arbitration demand, which is pending. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.
Murnaghan Matter
On July 25, 2023, claimant Hope Murnaghan filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The demand asserts claims for alleged violations of Massachusetts’ anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Massachusetts players of SciPlay’s online social casino games other than the claimant. On October 12, 2023, respondent filed its answering statement to claimant’s arbitration demand. On April 1, 2024, respondent filed a motion to dismiss the claimant’s arbitration demand, which is pending. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.
Ewing Matter
On November 31, 2023, plaintiff Lauren Ewing filed a lawsuit against SciPlay Corporation and SciPlay Games LLC in the Circuit Court for the 14th Judicial District of Tennessee. The complaint asserts claims for alleged violations of Tennessee’s anti-gambling statutes and seeks unspecified money damages, including recover of monies allegedly lost by Tennessee players of SciPlay’s online social casino games. On December 15, 2023, defendants removed the action to the United States District Court for the Eastern District of Tennessee. On January 12, 2024, plaintiff filed a motion to remand the action to the Circuit Court for the 14th Judicial District of Tennessee, which is pending. On January 22, 2024, defendants filed a motion to dismiss plaintiff’s complaint and a motion to compel arbitration of plaintiff’s claims, which are pending. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them.
Aristocrat Matter
On February 26, 2024, Aristocrat Technologies, Inc. and Aristocrat Technologies Australia Pty Limited brought a civil action in the United States District Court for the District of Nevada against L&W, LNW Gaming, Inc. and SciPlay Corporation. Plaintiffs assert claims for alleged trade secret misappropriation, copyright infringement, trade dress infringement and unfair competition, and deceptive trade practices, relating to defendants’ Dragon Train and Jewel of the Dragon games. Plaintiffs’
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complaint seeks preliminary and permanent injunctive relief, unspecified damages, the award of reasonable attorneys’ fees and costs, pre-judgment and post-judgment interest, and declaratory relief. Simultaneously with the filing of the complaint on February 26, 2024, the plaintiffs filed a motion to expedite discovery, which the court granted in part and denied in part on March 26, 2024. On April 9, 2024, defendants filed a motion to dismiss plaintiffs’ complaint, which is pending. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them.
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion is intended to enhance the reader’s understanding of our operations and current business environment from management’s perspective and should be read in conjunction with the description of our business included under Part I, Item 1 “Condensed Consolidated Financial Statements” and Part II, Item 1A “Risk Factors” in this Quarterly Report on Form 10-Q and under Part I, Item 1 “Business,” Item 1A “Risk Factors” and Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our 2023 10-K.
This “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (“MD&A”) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and should be read in conjunction with the disclosures and information contained and referenced under “Forward-Looking Statements” and “Risk Factors” included in this Quarterly Report on Form 10-Q and “Risk Factors” included in our 2023 10-K. As used in this MD&A, the terms “we,” “us,” “our” and the “Company” mean L&W together with its consolidated subsidiaries.
BUSINESS OVERVIEW
We are a leading cross-platform global games company with a focus on content and digital markets. Our portfolio of revenue-generating activities primarily includes supplying game content and gaming machines, CMSs and table game products and services to licensed gaming entities; providing social casino and other mobile games, including casual gaming, to retail customers; and providing a comprehensive suite of digital gaming content, distribution platforms and player account management systems, as well as various other iGaming content and services.
As more fully described in Part I, Item 1 “Business” in our 2023 10-K, we are executing on our strategy to become a leading cross-platform global games company with a focus on content and digital markets. We report our results of operations in three business segments—Gaming, SciPlay and iGaming—representing our different products and services. See “Business Segments Results” below and Note 3 for additional business segment information.
CONSOLIDATED RESULTS
Three Months Ended March 31, Variance
($ in millions)20242023
2024 vs. 2023
Total revenue$756 $670 $86 13 %
Total operating expenses591 568 23 4 %
Operating income165 102 63 62 %
Net income before income taxes100 26 74 285 %
Net income82 27 55 204 %
Net income attributable to L&W82 22 60 273 %
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Revenue
Consolidated Revenue by Business Segment
(in millions)
Three Months Ended March 31, 2024 and 2023
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Gaming revenue growth for the three months ended March 31, 2024 was $57 million or 14%, primarily driven by global Gaming machine sales growth of 30% coupled with continued strength in Systems and Gaming operations as well as success of our content performance.
For the three months ended March 31, 2024, SciPlay revenue increased by $20 million or 11%, compared to the prior year period, primarily due to increased average revenue per daily active user and social casino player engagement. Average revenue per daily active user grew 13% in 2024, reaching a new record high of $1.01.
iGaming revenue increased by $9 million or 14% for the three months ended March 31, 2024, compared to the prior year period, primarily due to continued momentum in the international and U.S. markets as well as the strength of our original content.
Operating Expenses
Three Months Ended March 31,Variance
($ in millions)202420232024 vs. 2023
Operating expenses:
  Cost of services
$112 $108 $4 4 %
  Cost of products
107 94 13 14 %
SG&A218 192 26 14 %
R&D62 54 8 15 %
D&A86 101 (15)(15)%
Restructuring and other6 19 (13)(68)%
Total operating expenses
$591 $568 $23 4 %
Cost of Revenue
Total cost of revenue for the three months ended March 31, 2024 increased as a direct result of higher revenue as described above, driven by $13 million in higher cost of products revenue primarily associated with higher gaming machine sales, while increased cost of services was primarily driven by SciPlay, which increased $3 million compared to the prior year period due to revenue growth.
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SG&A
SG&A increased for the three months ended March 31, 2024 as compared to the prior year period, primarily due to higher salaries and benefits of $10 million and higher marketing spend of $9 million (primarily driven by the SciPlay segment).
R&D
R&D increased for the three months ended March 31, 2024 as compared to the prior year period, largely due to higher salaries and benefits, primarily in the Gaming and SciPlay segments.
D&A
D&A decreased primarily due to fully depreciated assets and amortization of intangible assets related to certain of our legacy trade names as well as past acquisitions associated with our Gaming segment.
Restructuring and Other
The decrease in restructuring and other for the three months ended March 31, 2024, as compared to the prior year period, was primarily due to lower professional service, legal and other costs related to the strategic review and related transactions. Refer to Note 4 for more information.
Other Factors Affecting Net Income Attributable to L&W
Three Months Ended March 31,Factors Affecting Net Income Attributable to L&W
(in millions)202420232024 vs. 2023
Other income (expense), net$10 $(1)The increase in other income was primarily due to the impact of changes in foreign currency exchange rates.
Income tax (expense) benefit(1)
(18)1 
The increase in income tax expense was primarily due to the increase in worldwide income as well as tax benefits of internal restructuring transactions in the prior year period.
(1) For additional information regarding the changes in our effective tax rates and the variance in our income tax expense, see Note 13.
Foreign Currency Exchange (F/X)
Our results are impacted by changes in foreign currency exchange rates used in the translation of foreign functional currencies into USD and the re-measurement of foreign currency transactions or balances. The impact of foreign currency exchange rate fluctuations represents the difference between current rates and prior-period rates applied to current activity. Our exposure to foreign currency volatility on revenue is as follows:
Three Months Ended March 31,
20242023
($ in millions)
Revenue% Consolidated RevenueRevenue% Consolidated Revenue
Foreign Currency:
British Pound Sterling$28 4 %$27 4 %
Euro48 6 %44 7 %
BUSINESS SEGMENT RESULTS (for the three months ended March 31, 2024 compared to the three months ended March 31, 2023)
GAMING
Our Gaming business segment designs, develops, manufactures, markets and distributes a comprehensive portfolio of gaming content, products and services. We provide our Gaming portfolio of products and services to commercial casinos, Native American casinos, wide-area gaming operators such as LBOs, arcade and bingo operators in the U.K. and continental Europe, and government agencies and their affiliated operators.
We generate Gaming revenue from both services and product sales. Our services revenue includes revenue earned from Participation gaming machines, other leased gaming machines (including VLTs and electronic table games), supplied table products and services (including Shufflers), casino management technology solutions and systems, and other services revenues. Our product sales revenue includes the sale of new and used gaming machines, electronic table games, VLTs and VGTs, casino-management technology solutions and systems, table products, proprietary table game licensing, conversion kits (including game, hardware or operating system conversions) and spare parts.
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For additional information, refer to the Gaming primary business activities summary included within “Business Segment Results” under Item 7 of our 2023 10-K.
Current Year Update
The increase in Gaming revenue for the three months ended March 31, 2024, as compared to the prior year period, was primarily driven by continued global Gaming machine sales growth of 30% coupled with growth in Systems and Gaming operations, which benefited from increased U.S. and Canada installed base and higher average daily revenue per unit. Our growth is driven by the continued strength and success of our content portfolio performance, driving Game sales growth in North American-adjacent and International markets, led by Australia and Asia, as well as persistent success of our COSMICTM and MURAL® cabinets. Our robust portfolio of hit franchises is expected to drive further growth in the remainder of 2024. While demand remains strong, we are actively monitoring any impact of inflationary pressures and macroeconomic uncertainty that may impact our operations. We are also monitoring for any potential disruptions in our supply chain, such as those due to armed conflicts or hostilities, and we increase our inventory positions when deemed necessary to mitigate any expected or unexpected delays and fulfill customer orders timely.
Results of Operations and KPIs
Three Months Ended March 31, 2024 and 2023
593559365937
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Three Months Ended March 31,Variance
($ in millions, except per unit amounts)202420232024 vs. 2023
Revenue:
Gaming operations$164 $160 $4 3 %
Gaming machine sales205 158 47 30 %
Gaming systems60 55 5 9 %
Table products47 46 1 2 %
Total revenue$476 $419 $57 14 %
F/X impact on revenue$— $(5)$5 100 %
KPIs:
U.S. and Canada units:
Installed base at period end31,534 30,675 859 3 %
Average daily revenue per unit(1)
$48.82 $46.72 $2.10 4 %
International units(2):
Installed base at period end22,163 26,220 (4,057)(15)%
Average daily revenue per unit$14.28 $14.19 $0.09 1 %
Gaming machine sales:
U.S. and Canada new unit shipments4,437 4,057 380 9 %
International new unit shipments5,259 3,621 1,638 45 %
Total new unit shipments9,696 7,678 2,018 26 %
Average sales price per new unit$19,897 $18,748 $1,149 6 %
(1) We refined U.S. and Canada units average daily revenue per unit calculation to include certain Gaming operations revenue streams that were previously excluded and have revised prior periods to align with the new calculation. The change aligns more closely with how management evaluates the operating performance and was immaterial both quantitatively and qualitatively.
(2) Units exclude those related to game content licensing.
Gaming Operations
Gaming operations revenue growth was driven by strong game performance of hit franchises, including our premium games. Gaming operations for U.S. and Canada had a 859-unit increase in installed base, along with an increase in average daily revenue per unit of $2.10 for the three months ended March 31, 2024. Average daily revenue per unit for International units increased slightly for the three months ended March 31, 2024, but International ending installed base units decreased by 4,057 units primarily due to the expected closure of certain LBOs in the U.K. along with the reduction of certain low-yielding units in Greece and Latin America.
Gaming Machine Sales
Gaming machine sales revenue increased primarily due to higher sales of replacement units globally as operator capital spending remained at healthy levels, casino opening and expansion activity increased internationally and average sales price per new unit increased, mostly from a favorable product mix.
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The following table summarizes Gaming machine sales changes:
Three Months Ended March 31,
Variance
202420232024 vs. 2023
U.S. and Canada unit shipments:
Replacement units4,296 3,760 536 14 %
Casino opening and expansion units141 297 (156)(53)%
   Total unit shipments4,437 4,057 380 9 %
International unit shipments:
Replacement units3,711 2,210 1,501 68 %
Casino opening and expansion units1,548 1,411 137 10 %
   Total unit shipments5,259 3,621 1,638 45 %
Operating Expenses and AEBITDA
The increase in operating expenses is primarily due to $11 million in higher SG&A costs coupled with $11 million in higher cost of revenue associated with the increase in revenue as described above, partially offset by $18 million in lower D&A as a result of fully depreciated and amortized assets related to prior acquisitions and legacy trade names during 2023.
AEBITDA increased by $26 million or 13%, and AEBITDA as a percentage of revenue (“AEBITDA margin”) remained at 49%. These results were primarily driven by revenue growth in the period.
SCIPLAY
Our SciPlay business segment is a leading developer and publisher of digital games on mobile and web platforms. SciPlay operates primarily in the social gaming market, which is characterized by gameplay online or on mobile devices that is social, competitive and self-directed in pace and session length. SciPlay also operates in the hyper-casual space, which is characterized by simpler core loops and more repetitive gameplay than casual games. SciPlay generates a substantial portion of its revenue from in-app purchases in the form of coins, chips and cards, which players can use to play slot games, table games or bingo games. Players who install SciPlay’s social games typically receive free coins, chips or cards upon the initial launch of the game and additional free coins, chips or cards at specific time intervals. Players may exhaust the coins, chips or cards that they receive for free and may choose to purchase additional coins, chips or cards in order to extend their time of game play. Once obtained, coins, chips and cards (either free or purchased) cannot be redeemed for cash nor exchanged for anything other than game play within SciPlay’s apps. SciPlay generates additional revenue through advertising arrangements in SciPlay’s hyper-casual games, which was not material for the periods presented. Players who install SciPlay’s hyper-casual games receive free, unlimited gameplay that requires viewing of periodic in-game advertisements.
SciPlay currently offers a variety of social casino games, including JACKPOT PARTY® Casino, QUICK HIT® Slots, GOLD FISH® Casino, 88 FORTUNES® Slots, MONOPOLY Slots and HOT SHOT CASINO®. SciPlay continues to pursue its strategy of expanding into the online and mobile games market. Current casual game titles include BINGO SHOWDOWNTM and BACKGAMMON LIVE as well as other titles in the hyper-casual space, including games such as CANDY CHALLENGE 3D, BOSS LIFE and DEEP CLEAN INC. 3D. SciPlay continually develops and tests various new games. SciPlay’s social casino games typically include slots-style game play and occasionally include table games-style game play, while its casual games blend solitaire-style or bingo game play with adventure game features and its hyper-casual games include many simple core loop mechanics. All of SciPlay’s games are offered and played across multiple platforms, including APPLE, GOOGLE, FACEBOOK, AMAZON and MICROSOFT. SciPlay launched a proprietary in-app purchase platform during 2023, with the goals of improving players’ experience and reducing costs of revenue given the lower payment processing fees and other related expenses for in-app purchases made through the proprietary platform, as compared to the platform fee charged by third-party platforms. The revenue generated via the proprietary platform has begun to increase and represented approximately 6% of the total SciPlay revenue for the first quarter of 2024. In addition to original game content, SciPlay’s content library includes recognizable game content across our other platforms within Gaming and iGaming. This content allows players who like playing land-based game content to enjoy some of those same titles in SciPlay’s free-to-play games.
Current Year Update
SciPlay started 2024 by delivering strong results, and it continues to see elevated payer engagement. Revenue growth was 11%, which was primarily attributable to the revenue generated by Jackpot Party Casino, Quick Hit Slots and Gold Fish Casino. We believe that there is an opportunity for continued improvement of operating results in 2024 and beyond, as SciPlay
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continues to deploy strategic game updates, utilize enhanced analytics, pursue international expansion and benefit from the proprietary in-app purchase platform launched in 2023.
We have a significant portion of SciPlay personnel located in Tel Aviv, Israel. In light of current circumstances in Israel, we are actively monitoring developments and are ready to redirect resources as needed to minimize impact on SciPlay operations. We do not have servers or infrastructure that are located in Israel that host our games. While we have not yet seen an impact on our business from current events, they could negatively affect the performance of the personnel in that area and have an adverse impact on our business if these events continue and/or escalate.
Results of Operations and KPIs
Three Months Ended March 31, 2024 and 2023
115461154711548
(1) Other represents $12 million in revenue generated via our proprietary platform during the three months ended March 31, 2024, along with advertising and other revenue, which were not material for the periods presented.
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Three Months Ended March 31,Variance
(in millions unless otherwise noted)202420232024 vs. 2023
Revenue:    
Mobile in-app purchases$170 $166 $4 2 %
Web in-app purchases and other(1)
36 21 15 71 %
Total revenue$206 $186 $20 11 %
KPIs:
In-App Purchases:
Mobile Penetration(2)
84 %91 %(7) ppnm
Average MAU(3)
5.8 6.1 (0.3)(5)%
Average DAU(4)
2.2 2.3 (0.1)(4)%
ARPDAU(5)
$1.01 $0.89 $0.12 13 %
Average MPUs(6) (in thousands)
594 625 (31)(5)%
AMRPPU(7)
$113.93 $97.43 $16.50 17 %
Payer Conversion Rate(8)
10.2 %10.3 %(0.1) ppnm
nm = not meaningful.
pp = percentage points.
(1) Other represents $12 million in revenue generated via our proprietary platform during the three months ended March 31, 2024, along with advertising and other revenue, which were not material for the periods presented.
(2) Mobile penetration is defined as the percentage of business to consumer SciPlay revenue generated from mobile platforms.
(3) MAU = Monthly Active Users is a count of visitors to our sites during a month. An individual who plays multiple games or from multiple devices may, in certain circumstances, be counted more than once. However, we use third-party data to limit the occurrence of multiple counting.
(4) DAU = Daily Active Users is a count of visitors to our sites during a day. An individual who plays multiple games or from multiple devices may, in certain circumstances, be counted more than once. However, we use third-party data to limit the occurrence of multiple counting.
(5) ARPDAU = Average Revenue Per DAU is calculated by dividing revenue for a period by the DAU for the period by the number of days for the period.
(6) MPU = Monthly Paying Users is the number of individual users who made an in-game purchase during a particular month.
(7) AMRPPU = Average Monthly Revenue Per Paying User is calculated by dividing average monthly revenue by average MPUs for the applicable time period.
(8) Payer conversion rate is calculated by dividing average MPU for the period by the average MAU for the same period.
Revenue increased as average monthly revenue per paying user increased 17% while social casino payer engagement remained relatively constant.
Mobile penetration percentage decreased to 84%, primarily reflecting an increase in revenue generated via our proprietary platform with a majority of players continuing to use mobile platforms to play SciPlay’s games.
Average MAU and average MPU decreased due to the turnover in users. ARPDAU increased as a function of higher player monetization with a slight decrease in average DAU. AMRPPU increased, with payer conversion remaining relatively constant, as SciPlay continues to improve content and features resulting in increased paying player interaction.
Payer conversion rates continue to be at high levels due to consistent payer interaction with the games as a result of SciPlay’s focus on introducing new content, features and live events in their games.
Operating Expenses and AEBITDA
The increase in operating expenses correlated with the above-described increase in revenue as a result of higher platform fees, resulting in $3 million in higher cost of revenue, coupled with higher marketing spend of $7 million, and higher salaries and benefit costs (including stock-based compensation) of $4 million related to an increase in headcount.
AEBITDA increased by $8 million and AEBITDA margin increased by 1 percentage point to 30%, primarily due to revenue growth as discussed above, partially offset by the increase in operating costs resulting from increases in marketing spend and salaries and benefits.
iGAMING
Our iGaming business segment provides a comprehensive suite of digital gaming content, distribution platforms and player account management systems, as well as various other iGaming content and services. The majority of our revenue is derived from casino-style game content, including a wide variety of internally developed and branded games as well as popular third-party provider games. These games are made available to iGaming operators via content aggregation platforms, including Open Gaming System, remote gaming servers and various other platforms. We also provide our Open Platform System, a player account management system which offers a wide range of reporting and administrative functions and tools providing
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operators full control over all areas of digital gaming operations. Generally, we host the play of our game content which is integrated with the online casino operators’ websites.
Current Year Update
We continue to expand our customer base and capitalize on growth in the European and North American markets by leveraging our industry leading platforms, content and solutions, as well as investing in our ability to scale our own original U.S. land-based content offering. Currently we have launched in six U.S. states and launched our live casino operations in Michigan, and we are positioned to enter others as additional state legislatures authorize online gaming.
Results of Operations
Three Months Ended March 31, 2024 and 2023
146661466714668
Overall, iGaming revenue increased by $9 million or 14% compared to the prior year period, primarily driven by continuing momentum in the international and U.S. markets as well as the strength of our original content and growth in our partner network. Wagers processed through our Open Gaming System for the current year period increased to $22 billion.
Operating expenses increased slightly in correlation with the increase in revenue. AEBITDA increased by $2 million or 9%, and AEBITDA margin decreased slightly to 34% compared to the prior year period due to continuing investments in growth initiatives.
RECENTLY ISSUED ACCOUNTING GUIDANCE
We do not expect that any recently issued accounting guidance will have a significant effect on our consolidated financial statements.
CRITICAL ACCOUNTING ESTIMATES
For a description of our policies regarding our critical accounting estimates, see “Critical Accounting Estimates” in Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our 2023 10-K.
There have been no significant changes in our critical accounting estimate policies or the application of those policies to our condensed consolidated financial statements from those presented in Item 7 “Management's Discussion and Analysis of Financial Condition and Results of Operations” included in our 2023 10-K.

LIQUIDITY, CAPITAL RESOURCES AND WORKING CAPITAL
Cash and Available Liquidity
As of March 31, 2024, our principal sources of liquidity, other than cash flows provided by operating activities, were cash and cash equivalents as well as amounts available under the LNWI Revolver.
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Cash and Available Revolver Capacity
 As of
(in millions)March 31, 2024December 31, 2023
Cash and cash equivalents$450 $425 
Revolver capacity750 750 
Revolver capacity drawn or committed letters of credit(10)(10)
Total$1,190 $1,165 
Total cash held by our foreign subsidiaries was $150 million and $166 million as of March 31, 2024 and December 31, 2023, respectively. We believe that substantially all cash held outside the U.S. is free from legal encumbrances or similar restrictions that would prevent it from being available to meet our global liquidity needs.
Our Gaming operations generally require significant upfront capital expenditures, and we may need to incur additional capital expenditures in order to retain or increase market share and continue our product investments. Other capital requirements for the near term primarily include debt principal and interest payments and also include purchase obligations and supply contracts, license agreement minimum guaranteed payments and lease obligations. There have been no material changes to our capital requirements disclosed in our 2023 10-K, other than those associated with our repricing of the LNWI Term Loan B, as described in Note 10.
Our ability to make payments on and to refinance our indebtedness and other obligations depends on our ability to generate cash in the future. We may, from time to time, repurchase or otherwise repay, retire or refinance our debt, through our subsidiaries or otherwise. In the event we pursue significant acquisitions or other expansion opportunities, or conduct significant repurchases of our outstanding securities, we may need to raise additional capital. If we do not have adequate liquidity to support these activities, we may be unable to obtain financing for these cash needs on favorable terms or at all. For additional information regarding our cash needs and related risks, see “Risk Factors” under Part I, Item 1A in our 2023 10-K.
On March 1, 2022, our Board of Directors approved a share repurchase program under which we are authorized to repurchase, from time to time through February 25, 2025, up to an aggregate amount of $750 million of our outstanding common stock. During the three months ended March 31, 2024, we repurchased approximately 0.2 million shares of common stock under the program at an aggregate cost of $25 million.
Cash Flow Summary
Three Months Ended March 31,Variance
(in millions)202420232024 vs. 2023
Net cash provided by operating activities$171 $185 $(14)
Net cash used in investing activities(1)
(71)(57)(14)
Net cash used in financing activities(65)(65)— 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(3)— (3)
Increase in cash, cash equivalents and restricted cash$32 $63 $(31)
(1) The three months ended March 31, 2023 includes $3 million in cash used related to discontinued operations.
Cash flows from operating activities
Three Months Ended March 31,Variance
(in millions)202420232024 vs. 2023
Net income$82 $27 $55 
Adjustments to reconcile net income to cash provided by operating activities 110 138 (28)
Changes in working capital accounts, excluding the effects of acquisitions6 32 (26)
Changes in deferred income taxes and other(27)(12)(15)
Net cash provided by operating activities
$171 $185 $(14)
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Net cash provided by operating activities decreased primarily due to unfavorable changes in working capital accounts, partially offset by a $12 million increase in earnings (drivers described above).
Changes in working capital accounts for the three months ended March 31, 2024 were primarily impacted by higher billings, timing of disbursements and restricted customer deposits.
Cash flows from investing activities
Net cash used in investing activities increased primarily due to higher capital expenditures in order to support Gaming operations growth. Capital expenditures are composed of investments in systems, equipment and other assets related to contracts, property and equipment, intangible assets and software.
Cash flows from financing activities
Net cash used in financing activities was flat, as an increase in net redemptions of common stock under stock-based compensation plans was offset by lower license payments and purchases of our outstanding common stock under our share repurchase program.
Credit Agreement and Other Debt
For additional information regarding the LNWI Credit Agreement and other debt, interest rate risk and interest rate hedging instruments, see Notes 15 and 16 and Item 7A “Quantitative and Qualitative Disclosures About Market Risk” in our 2023 10-K as well as Notes 10 and 11 and Item 3 below in this Form 10-Q.
Off-Balance Sheet Arrangements
As of March 31, 2024, we did not have any significant off-balance sheet arrangements.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Market risk is the risk of loss arising from adverse changes in market rates and prices, such as interest rates, foreign exchange rates and commodity prices. The following describes our financial instruments which expose us to market risk.
Interest Rate Risk
As of March 31, 2024, the face value of long-term debt was $3.9 billion, including $2.2 billion of variable rate obligations that fluctuate based on SOFR. Assuming a constant outstanding balance for our variable-rate long-term debt and excluding the impact of interest rate swap contracts, a hypothetical 1% change in interest rates would result in interest expense changing by approximately $22 million. All of our interest rate sensitive financial instruments are held for purposes other than trading.
In April 2022, we entered into interest rate swap contracts to hedge a portion of our interest expense associated with our variable rate debt and effectively fix the interest rate that we pay. The objective of our interest rate swap contracts, which are designated as cash flow hedges of the future interest payments, is to eliminate the variability of cash flows attributable to the SOFR component of interest expense to be paid on a portion of our variable rate debt. These hedges mature in April 2027.
For additional information regarding our long-term debt and interest rate swap contracts, see Notes 10 and 11, respectively.
Item 4. Controls and Procedures
Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as required by Exchange Act Rule 3a-15(b) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these disclosure controls and procedures are effective as of March 31, 2024.
There were no changes in our internal control over financial reporting during the quarter ended March 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
For discussion of our legal proceedings, see Note 15, in this Quarterly Report on Form 10-Q and Note 20 in our 2023 10-K.
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Item 1A. Risk Factors
There have been no material changes in our risk factors from those disclosed under Item 1A “Risk Factors” included in our 2023 10-K.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
We repurchased 0.25 million shares under the share repurchase program during the three months ended March 31, 2024.
(in millions, except for price per share)
ISSUER PURCHASES OF EQUITY SECURITIES
PeriodTotal Number of Shares
Purchased as Part of
Publicly Announced
Program
Average Price Paid per Share(1)
Total Cost of Repurchase
(in millions)(1)
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (in millions)(1)
1/1/2024 - 1/31/2024— $— $— $175 
2/1/2024 - 2/29/2024— $— — $175 
3/1/2024 - 3/31/20240.25 $101.04 25 $150 
Total0.25 $101.04 $25 $150 
(1) Average price paid per share is calculated on a settlement basis and excludes excise tax. As of January 1, 2023, our share repurchases in excess of issuances are subject to a 1% excise tax enacted by the Inflation Reduction Act. Any excise tax incurred is recognized in stockholders’ equity as part of the cost basis of the shares acquired.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
Insider Trading Arrangements and Policies
Certain of our officers or directors have made elections to participate in, and are participating in, our 401(k) plan and have made, and may from time to time make, elections to have shares withheld to cover withholding taxes, which may be designed to satisfy the affirmative defense conditions of Rule 10b5-1 under the Exchange Act or may constitute non-Rule 10b5-1 trading arrangements (as defined in Item 408(c) of Regulation S-K). During the three months ended March 31, 2024, no director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" as such term is defined in Item 408(a) of Regulation S-K.
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Item 6. Exhibits
Exhibit NumberDescription
3.1
3.2
31.1
31.2
32.1
32.2
101.INSInline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCHInline XBRL Taxonomy Extension Schema Document
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEFInline XBRL Taxonomy Extension Definition Label Linkbase Document
101.LABInline XBRL Taxonomy Extension Label Linkbase Document
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document
104Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
* Furnished herewith.
(†) Filed herewith.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 LIGHT & WONDER, INC.
(Registrant)
 By: /s/ Oliver Chow
Name:Oliver Chow
Title:
Executive Vice President, Chief Financial Officer and Treasurer
Dated:    May 8, 2024
41
Exhibit 31.1

Certification by Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Matthew R. Wilson, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of Light & Wonder, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.   The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Matthew R. Wilson
Matthew R. Wilson
Chief Executive Officer
Date: May 8, 2024


Exhibit 31.2

Certification by Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Oliver Chow, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of Light & Wonder, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 /s/ Oliver Chow
 Oliver Chow
Chief Financial Officer
Date: May 8, 2024

Exhibit 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Light & Wonder, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Matthew R. Wilson, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

/s/ Matthew R. Wilson
Matthew R. Wilson
Chief Executive Officer
May 8, 2024


Exhibit 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Light & Wonder, Inc. (the “Company”) for the period ended March 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Oliver Chow, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002, that, to my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

/s/ Oliver Chow
Oliver Chow
Chief Financial Officer
May 8, 2024


v3.24.1.u1
Cover - shares
 3 Months Ended
Mar. 31, 2024
May 03, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Period End Date Mar. 31, 2024  
Entity Central Index Key 0000750004  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Amendment Flag false  
Document Transition Report false  
Entity File Number 001-11693  
Entity Registrant Name LIGHT & WONDER, INC.  
Entity Incorporation, State or Country Code NV  
Entity Tax Identification Number 81-0422894  
Entity Address, Address Line One 6601 Bermuda Road  
Entity Address, City or Town Las Vegas  
Entity Address, State or Province NV  
Entity Address, Postal Zip Code 89119  
City Area Code 702  
Local Phone Number 897-7150  
Title of 12(b) Security Common Stock, $.001 par value  
Trading Symbol LNW  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   90,137,722
Document Quarterly Report true  
v3.24.1.u1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Revenue:    
Revenue from Contract with Customer, Excluding Assessed Tax $ 756 $ 670
Operating expenses:    
Selling, general and administrative 218 192
Research and development 62 54
Depreciation, amortization and impairments 86 101
Restructuring and other 6 19
Operating income 165 102
Other (expense) income:    
Interest expense (75) (75)
Other income (expense), net 10 (1)
Total other expense, net (65) (76)
Net income before income taxes 100 26
Income tax (expense) benefit (18) 1
Net income 82 27
Less: Net income attributable to noncontrolling interest 0 5
Net income attributable to L&W $ 82 $ 22
Per Share - Basic:    
Net income attributable to L&W $ 0.91 $ 0.24
Per Share - Diluted:    
Net income attributable to L&W $ 0.88 $ 0.23
Weighted average number of shares used in per share calculations:    
Basic shares 90 91
Diluted shares 92 93
Services    
Revenue:    
Revenue from Contract with Customer, Excluding Assessed Tax $ 517 $ 477
Operating expenses:    
Cost of revenues [1] 112 108
Products    
Revenue:    
Revenue from Contract with Customer, Excluding Assessed Tax 239 193
Operating expenses:    
Cost of revenues [1] $ 107 $ 94
[1] (1) Excludes D&A.
v3.24.1.u1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Statement of Comprehensive Income [Abstract]    
Net income $ 82 $ 27
Foreign currency translation (loss) gain, net of tax (29) 13
Derivative financial instruments unrealized gain (loss), net of tax 6 (7)
Total other comprehensive (loss) income (23) 6
Total comprehensive income 59 33
Less: Net income attributable to noncontrolling interest 0 5
Comprehensive income attributable to L&W $ 59 $ 28
v3.24.1.u1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 450 $ 425
Restricted cash 97 90
Receivables, net of allowance for credit losses of $33 and $38, respectively 504 506
Inventories 175 177
Prepaid expenses, deposits and other current assets 114 113
Total current assets 1,340 1,311
Non-current assets:    
Restricted cash 6 6
Receivables, net of allowance for credit losses of $7 and $3, respectively 57 37
Property and equipment, net 246 236
Operating lease right-of-use assets 48 52
Goodwill 2,925 2,945
Intangible assets, net 568 605
Software, net 160 158
Deferred income taxes 166 142
Other assets 72 60
Total assets 5,588 5,552
Current liabilities:    
Current portion of long-term debt 22 22
Accounts payable 211 241
Accrued liabilities 381 404
Income taxes payable 63 29
Total current liabilities 677 696
Deferred income taxes 20 20
Operating lease liabilities 34 39
Other long-term liabilities 170 180
Long-term debt, excluding current portion 3,852 3,852
Total liabilities 4,753 4,787
Commitments and contingencies (Note 15)
Stockholders’ equity:    
Common stock, par value $0.001 per share, 199 shares authorized; 117 and 116 shares issued, respectively, and 90 shares outstanding 1 1
Additional paid-in capital 1,154 1,118
Retained earnings 762 680
Treasury stock, at cost, 27 and 26 shares, respectively (776) (751)
Accumulated other comprehensive loss (306) (283)
Total stockholders’ equity 835 765
Total liabilities and stockholders’ equity $ 5,588 $ 5,552
v3.24.1.u1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Accounts Receivable, Allowance for Credit Loss, Current $ 33 $ 38
Accounts Receivable, Allowance for Credit Loss, Noncurrent $ 7 $ 3
Common stock par value (in dollars per share) $ 0.001 $ 0.001
Common stock authorized (in shares) 199,000,000 199,000,000
Common stock issued (in shares) 117,000,000 116,000,000
Common stock outstanding (in shares) 90,000,000 90,000,000
Treasury Stock, Common, Shares 27,000,000 26,000,000
v3.24.1.u1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Cash flows from operating activities:    
Net income $ 82 $ 27
Adjustments to reconcile net income to net cash provided by operating activities 110 138
Changes in working capital accounts, excluding the effects of acquisition 6 32
Change in deferred income taxes and other (27) (12)
Net cash provided by operating activities 171 185
Cash flows from investing activities:    
Capital expenditures 66 53
Other(1) (5) (4) [1]
Net cash used in investing activities (71) (57)
Cash flows from financing activities:    
Payments on long-term debt 0 (6)
Payments of debt issuance and deferred financing costs (2) 0
Payments on license obligations (5) (12)
Purchase of L&W common stock (25) (28)
Purchase of SciPlay’s Class A common stock 0 (8)
Net redemptions of common stock under stock-based compensation plans and other (33) (11)
Net cash used in financing activities (65) (65)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (3) 0
Increase in cash, cash equivalents and restricted cash 32 63
Cash, cash equivalents and restricted cash, beginning of period 521 967
Cash, cash equivalents and restricted cash, end of period 553 1,030
Supplemental cash flow information:    
Cash paid for interest 63 63
Income taxes paid 8 9
Non-cash interest expense $ 2 $ 3
[1]
(1) The three months ended March 31, 2023 includes $3 million in cash used in discontinued operations.
v3.24.1.u1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)
$ in Millions
 3 Months Ended
Mar. 31, 2023
USD ($)
Statement of Cash Flows [Abstract]  
Net cash used in investing activities from discontinued operations $ 3
v3.24.1.u1
Description of the Business and Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Description of the Business and Summary of Significant Accounting Policies
Description of the Business
We are a leading cross-platform global games company with a focus on content and digital markets. Our portfolio of revenue-generating activities primarily includes supplying game content and gaming machines, CMSs and table game products and services to licensed gaming entities; providing social casino and other mobile games, including casual gaming, to retail customers; and providing a comprehensive suite of digital gaming content, distribution platforms and player account management systems, as well as various other iGaming content and services. We report our results of operations in three business segments—Gaming, SciPlay and iGaming—representing our different products and services.
Basis of Presentation and Principles of Consolidation
The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of L&W, its wholly owned subsidiaries, and those subsidiaries in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation.
In the opinion of L&W and its management, we have made all adjustments necessary to present fairly our consolidated financial position, results of operations, comprehensive income and cash flows for the periods presented. Such adjustments are of a normal, recurring nature. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2023 10-K. Interim results of operations are not necessarily indicative of results of operations to be expected for a full year.
Significant Accounting Policies
There have been no changes to our significant accounting policies described within the Notes of our 2023 10-K.    
Computation of Basic and Diluted Net Income Attributable to L&W Per Share
Basic and diluted net income attributable to L&W per share are based upon net income attributable to L&W divided by the weighted average number of common shares outstanding during the period. Diluted net income attributable to L&W per share reflects the effect of the assumed exercise of stock options and RSUs only in the periods in which such effect would have been dilutive to net income.
For the three months ended March 31, 2024 and 2023, we included 2 million of common stock equivalents in the calculation of diluted net income attributable to L&W per share.
New Accounting Guidance
There have been no recent accounting pronouncements or changes in accounting pronouncements since those described within the Notes of our 2023 10-K that are expected to have a material impact on our consolidated financial statements.
v3.24.1.u1
Revenue Recognition
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
The following table disaggregates our revenues by type within each of our business segments:
Three Months Ended March 31,
20242023
Gaming
Gaming operations$164 $160 
Gaming machine sales205 158 
Gaming systems60 55 
Table products47 46 
Total$476 $419 
SciPlay
Mobile in-app purchases$170 $166 
Web in-app purchases and other(1)
36 21 
Total$206 $186 
iGaming$74 $65 
(1) Other represents $12 million in revenue generated via our proprietary platform during the three months ended March 31, 2024, along with advertising and other revenue, which were not material for the periods presented.
The amount of rental income revenue that is outside the scope of ASC 606 was $127 million and $117 million for the three months ended March 31, 2024 and 2023, respectively.
Contract Liabilities and Other Disclosures
The following table summarizes the activity in our contract liabilities for the reporting period:
Three Months Ended March 31, 2024
Contract liability balance, beginning of period(1)
$27 
Liabilities recognized during the period16 
Amounts recognized in revenue from beginning balance(13)
Contract liability balance, end of period(1)
$30 
(1) Contract liabilities are included within Accrued liabilities and Other long-term liabilities in our consolidated balance sheets.
The timing of revenue recognition, billings and cash collections results in billed receivables, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on our consolidated balance sheets. Other than contracts with customers with financing arrangements exceeding 12 months, revenue recognition is generally proximal to conversion to cash. The following table summarizes our balances in these accounts for the periods indicated (other than contract liabilities disclosed above):
Receivables
Contract Assets(1)
Beginning of period balance$543 $24 
End of period balance, March 31, 2024
561 24 
(1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets.
As of March 31, 2024, we did not have material unsatisfied performance obligations for contracts expected to be long-term or contracts for which we recognize revenue at an amount other than for which we have the right to invoice for goods or services delivered or performed.
v3.24.1.u1
Business Segments
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Business Segments
We report our operations in three business segments—Gaming, SciPlay and iGaming—representing our different products and services. A detailed discussion regarding the products and services from which each reportable business segment derives its revenue is included in Notes 3 and 4 in our 2023 10-K.
In evaluating financial performance, our Chief Operating Decision Maker (defined as our Chief Executive Officer) focuses on AEBITDA as management’s primary segment measure of profit or loss, which is described in footnote (2) to the
below table. The accounting policies for our business segments are the same as those described within the Notes in our 2023 10-K. The following tables present our segment information:
Three Months Ended March 31, 2024
GamingSciPlayiGaming
Unallocated and Reconciling Items(1)
Total
Total revenue
$476 $206 $74 $— $756 
AEBITDA(2)
232 62 25 (38)$281 
Reconciling items to net income before income taxes:
D&A
(61)(6)(13)(6)(86)
Restructuring and other
— — (3)(3)(6)
Interest expense
(75)(75)
Other income, net
8 8 
Stock-based compensation
(22)(22)
Net income before income taxes
$100 
(1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes.
(2) AEBITDA is reconciled to net income before income taxes with the following adjustments, as applicable: (1) depreciation and amortization expense and impairment charges (including goodwill impairments); (2) restructuring and other, which includes charges or expenses attributable to: (i) employee severance; (ii) management restructuring and related costs; (iii) restructuring and integration; (iv) cost savings initiatives; (v) major litigation; and (vi) acquisition- and disposition-related costs and other unusual items; (3) interest expense; (4) gain (loss) on debt refinancing transactions; (5) change in fair value of investments and remeasurement of debt and other; (6) other income (expense), net, including foreign currency gains or losses and earnings from equity investments; and (7) stock-based compensation. AEBITDA is presented as our primary segment measure of profit or loss.
Three Months Ended March 31, 2023
GamingSciPlayiGaming
Unallocated and Reconciling Items(1)
Total
Total revenue
$419 $186 $65 $— $670 
AEBITDA(2)
206 54 23 (34)$249 
Reconciling items to net income before income taxes:
D&A
(79)(6)(11)(5)(101)
Restructuring and other(7)(1)(1)(10)(19)
Interest expense(75)(75)
Other expense, net(2)(2)
Stock-based compensation(26)(26)
Net income before income taxes
$26 
(1) Includes amounts not allocated to the business segments (including corporate costs) and reconciling items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes.
(2) AEBITDA is described in footnote (2) to the first table in this Note 3.
v3.24.1.u1
Restructuring and other
 3 Months Ended
Mar. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring and other
Restructuring and other includes charges or expenses attributable to: (i) employee severance; (ii) management restructuring and related costs; (iii) restructuring and integration; (iv) cost savings initiatives; (v) major litigation; and (vi)
acquisition- and disposition-related costs and other unusual items. The following table summarizes pre-tax restructuring and other costs for the periods presented:
Three Months Ended March 31,
20242023
Employee severance and related$1 $9 
Strategic review and related(1)
1 4 
Contingent acquisition consideration(2)
1 — 
Restructuring, integration and other3 6 
Total$6 $19 
(1) Includes costs associated with the SciPlay merger, ASX listing, sale of discontinued operations (including ongoing separation activities), rebranding and related activities. Refer to the Notes in our 2023 10-K for more information regarding these activities.
(2) Represents contingent consideration fair value adjustment (see Note 11).
v3.24.1.u1
Accounts Receivable and Notes Receivable and Credit Quality of Receivables
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Accounts and Nontrade Receivable
Receivables
The following table summarizes the components of current and long-term receivables, net:
As of
March 31, 2024December 31, 2023
Current:
Receivables$537 $544 
Allowance for credit losses(33)(38)
Current receivables, net504 506 
Long-term:
Receivables64 40 
Allowance for credit losses(7)(3)
Long-term receivables, net57 37 
Total receivables, net$561 $543 
Allowance for Credit Losses
We manage our receivable portfolios using both geography and delinquency as key credit quality indicators. The following table summarizes geographical delinquencies of total receivables, net:    
As of
March 31, 2024Balances over 90 days past dueDecember 31, 2023Balances over 90 days past due
Receivables:
U.S. and Canada$316 $4 $344 $13 
International285 41 240 50 
     Total receivables601 45 584 63 
Receivables allowance:
U.S. and Canada(16)(3)(17)(3)
International(24)(11)(24)(12)
Total receivables allowance(40)(14)(41)(15)
Receivables, net$561 $31 $543 $48 
Account balances are charged against the allowances after all internal and external collection efforts have been exhausted and the potential for recovery is considered remote.
The activity in our allowance for receivable credit losses for each of the three months ended March 31, 2024 and 2023 is as follows:
20242023
TotalU.S. and CanadaInternationalTotal
Beginning allowance for credit losses$(41)$(17)$(24)$(40)
Provision(1)— (1)(1)
Charge-offs and recoveries2 1 1 1 
Allowance for credit losses as of March 31$(40)$(16)$(24)$(40)
As of March 31, 2024, 6% of our total receivables, net, were past due by over 90 days, compared to 9% as of December 31, 2023.
Credit Quality of Receivables
We have certain concentrations of outstanding receivables in international locations that impact our assessment of the credit quality of our receivables. We monitor the macroeconomic and political environment in each of these locations in our assessment of the credit quality of our receivables. The international customers with significant concentrations (generally deemed to be exceeding 10%) of our receivables with terms longer than one year are in the Latin America region (“LATAM”) and are primarily comprised of Mexico, Peru and Argentina. The following table summarizes our LATAM receivables:
As of March 31, 2024
TotalCurrentBalances over 90 days past due
Receivables$61 $47 $14 
Allowance for credit losses(18)(11)(7)
Receivables, net$43 $36 $7 
We continuously review receivables and, as information concerning credit quality and/or overall economic environment arises, reassess our expectations of future losses and record an incremental reserve if warranted at that time. Our current allowance for credit losses represents our current expectation of credit losses; however, future expectations could change as international unrest or other macro-economic factors impact the financial stability of our customers.
The fair value of receivables is estimated by discounting expected future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings and remaining maturities. As of March 31, 2024 and December 31, 2023, the fair value of receivables, net, approximated the carrying value due to contractual terms of receivables generally being less than 24 months.
v3.24.1.u1
Inventories
 3 Months Ended
Mar. 31, 2024
Inventory Disclosure [Abstract]  
Inventories
Inventories consisted of the following:
 As of
 March 31, 2024December 31, 2023
Parts and work-in-process$126 $113 
Finished goods49 64 
Total inventories$175 $177 
Parts and work-in-process include parts for gaming machines and our finished goods inventory primarily consist of gaming machines for sale.
v3.24.1.u1
Property and Equipment, net
 3 Months Ended
Mar. 31, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment, net
Property and equipment, net consisted of the following:
As of
March 31, 2024December 31, 2023
Land$6 $6 
Buildings and leasehold improvements59 59 
Gaming machinery and equipment738 718 
Furniture and fixtures27 26 
Construction in progress10 7 
Other property and equipment96 94 
Less: accumulated depreciation(690)(674)
Total property and equipment, net$246 $236 
Depreciation expense is excluded from Cost of services, Cost of products and Other operating expenses and is separately presented within D&A.
Three Months Ended March 31,
20242023
Depreciation expense$31 $28 
v3.24.1.u1
Intangible Assets, net and Goodwill
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, net and Goodwill
Intangible Assets, net
The following tables present certain information regarding our intangible assets as of March 31, 2024 and December 31, 2023.
As of
March 31, 2024December 31, 2023
Gross Carrying
Value		Accumulated
Amortization		Net BalanceGross Carrying
Value		Accumulated
Amortization		Net Balance
Amortizable intangible assets:   
Customer relationships$901 $(581)$320 $904 $(567)$337 
Intellectual property
942 (779)163 947 (771)176 
Licenses292 (224)68 290 (217)73 
Brand names129 (121)8 129 (120)9 
Trade names163 (158)5 163 (157)6 
Patents and other11 (7)4 11 (7)4 
Total intangible assets$2,438 $(1,870)$568 $2,444 $(1,839)$605 
The following reflects intangible amortization expense included within D&A:
Three Months Ended March 31,
20242023
Amortization expense$37 $58 
Goodwill
The table below reconciles the change in the carrying value of goodwill, by business segment, for the period from December 31, 2023 to March 31, 2024.
Gaming(1)
SciPlayiGamingTotals
Balance as of December 31, 2023
$2,388 $210 $347 $2,945 
Foreign currency adjustments(8)— (12)(20)
Balance as of March 31, 2024
$2,380 $210 $335 $2,925 
(1) Accumulated goodwill impairment charges for the Gaming segment as of March 31, 2024 were $989 million.
v3.24.1.u1
Software, net
 3 Months Ended
Mar. 31, 2024
Research and Development [Abstract]  
Software, net
Software, net consisted of the following:
 As of
 March 31, 2024December 31, 2023
Software $1,101 $1,083 
Accumulated amortization(941)(925)
Software, net$160 $158 
The following reflects amortization of software included within D&A:
Three Months Ended March 31,
20242023
Amortization expense$18 $15 
v3.24.1.u1
Long-Term Debt
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Long-Term and Other Debt
The following table reflects our outstanding debt (in order of priority and maturity):
As of
March 31, 2024December 31, 2023
 Final MaturityRate(s)Face ValueUnamortized debt discount/premium and deferred financing costs, netBook ValueBook Value
Senior Secured Credit Facilities:
LNWI Revolver2027variable$— $— $— $— 
LNWI Term Loan B2029variable2,167 (26)2,141 2,141 
LNWI Senior Notes:
2028 Unsecured Notes20287.000%700 (6)694 694 
2029 Unsecured Notes20297.250%500 (5)495 495 
2031 Unsecured Notes20317.500%550 (7)543 543 
Other——1 — 1 1 
Total long-term debt outstanding$3,918 $(44)$3,874 $3,874 
Less: current portion of long-term debt(22)(22)
Long-term debt, excluding current portion$3,852 $3,852 
Fair value of debt(1)
$3,963 
(1) Fair value of our fixed rate and variable interest rate debt is classified within Level 2 in the fair value hierarchy and has been calculated based on the quoted market prices of our securities.
LNWI Term Loan B Repricing
On January 16, 2024, we amended the LNWI Credit Agreement and reduced the applicable margin on the LNWI Term Loan B. Following the amendment, the interest rate for the Term Loan B is either (i) the Adjusted Term SOFR Rate (as defined in the LNWI Credit Agreement) plus 2.75% per annum or (ii) a base rate plus 1.75% per annum.
We were in compliance with the financial covenants under all debt agreements as of March 31, 2024 (for information regarding our financial covenants of all debt agreements, see Note 15 in our 2023 10-K).
For additional information regarding the terms of our credit facilities and Senior Notes, see Note 15 in our 2023 10-K.
v3.24.1.u1
Fair Value of Measurements
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements
The fair value of our financial assets and liabilities is determined by reference to market data and other valuation techniques as appropriate. We believe the fair value of our financial instruments, which are principally cash and cash equivalents, restricted cash, receivables, other current assets, accounts payable and accrued liabilities, approximates their recorded values. Our assets and liabilities measured at fair value on a recurring basis are described below.
Derivative Financial Instruments
As of March 31, 2024, we held the following derivative instruments that were accounted for pursuant to ASC 815:
Interest Rate Swap Contracts
We use interest rate swap contracts as described below to manage exposure to interest rate fluctuations by reducing the uncertainty of future cash flows on a portion of our variable rate debt.
In April 2022, we entered into interest rate swap contracts to hedge a portion of our interest expense associated with our variable rate debt to effectively fix the interest rate that we pay. These interest rate swap contracts were designated as cash flow hedges under ASC 815. We pay interest at a weighted-average fixed rate of 2.8320% and receive interest at a variable rate equal to one-month Chicago Mercantile Exchange Term SOFR. The total notional amount of these interest rate swaps was $700 million as of March 31, 2024. These hedges mature in April 2027.
All gains and losses from these hedges are recorded in other comprehensive income (loss) until the future underlying payment transactions occur. Any realized gains or losses resulting from the hedges are recognized (together with the hedged transaction) as interest expense. We estimate the fair value of our interest rate swap contracts by discounting the future cash flows of both the fixed rate and variable rate interest payments based on market yield curves. The inputs used to measure the fair value of our interest rate swap contracts are categorized as Level 2 in the fair value hierarchy as established by ASC 820.
The following table shows the gain and interest income on our interest rate swap contracts:
Three Months Ended March 31,
20242023
Gain (loss) recorded in accumulated other comprehensive loss, net of tax$6 $(7)
Interest income recorded related to interest rate swap contracts4 3 
We do not expect to reclassify material amounts from accumulated other comprehensive loss to interest expense in the next twelve months.
The following table shows the effect of interest rate swap contracts designated as cash flow hedges on interest expense in the consolidated statements of income:
Three Months Ended March 31,
20242023
Total interest expense which reflects the effects of cash flow hedges$(75)$(75)
Hedged item(5)(5)
Derivative designated as hedging instrument9 8 
The following table shows the fair value of our hedges:
As of
Balance Sheet Line Item
March 31, 2024December 31, 2023
Interest rate swapsOther assets$28 $20 
Contingent Acquisition Consideration Liabilities
In connection with our acquisitions, we have recorded certain contingent consideration liabilities (including redeemable non-controlling interest), of which the values are primarily based on reaching certain earnings-based metrics. The related liabilities were recorded at fair value on their respective acquisition dates as a part of the consideration transferred and are remeasured each reporting period (other than for redeemable non-controlling interest, which is measured based on its redemption value). The inputs used to measure the fair value of our liabilities are categorized as Level 3 in the fair value hierarchy.
The table below reconciles the change in the contingent acquisition consideration liabilities (including deferred purchase price) for the period from December 31, 2023 to March 31, 2024.
TotalIncluded in Accrued LiabilitiesIncluded in Other Long-Term Liabilities
Balance as of December 31, 2023
$59 $39 $20 
Payments(1)
Fair value adjustments(1)
1 
Other adjustments(2)
(5)
Balance as of March 31, 2024
$54 $41 $13 
(1) Amount included in Restructuring and other (see Note 4).
(2) Represents extinguishment of $5 million in redeemable non-controlling interest liability associated with SciPlay’s acquisition of Alictus Yazilim Anonim Şirketi in 2022, as specified financial targets for the second year were not met. The gain was recorded in other income (expense), net in our consolidated statements of income.
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Stockholders' Equity (Deficit)
 3 Months Ended
Mar. 31, 2022
Stockholders' Equity Note [Abstract]  
Stockholders' Deficit
Changes in Stockholders’ Equity
The following tables present certain information regarding our stockholders’ equity as of March 31, 2024 and 2023:
Three Months Ended March 31, 2024
Common StockAdditional Paid in CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive LossTotal
January 1, 2024$1 $1,118 $680 $(751)$(283)$765 
Settlement of liability awards— 65 — — — 65 
Vesting of RSUs, net of tax withholdings and other— (43)— — — (43)
Purchase of treasury stock— — — (25)— (25)
Stock-based compensation— 14 — — — 14 
Net income— — 82 — — 82 
Other comprehensive loss— — — — (23)(23)
March 31, 2024$1 $1,154 $762 $(776)$(306)$835 
Three Months Ended March 31, 2023
 Common StockAdditional Paid in CapitalAccumulated LossTreasury StockAccumulated Other Comprehensive LossNoncontrolling InterestTotal
January 1, 2023$1 $1,370 $517 $(580)$(318)$171 $1,161 
Settlement of liability awards— 25 — — — — 25 
Vesting of RSUs, net of tax withholdings and other— (14)— — — — (14)
Purchase of treasury stock— — — (28)— — (28)
Purchase of SciPlay’s Class A common stock— (8)— — — — (8)
Stock-based compensation— 15 — — — — 15 
Net income— — 22 — — 5 27 
Other comprehensive income— — — — 6 — 6 
March 31, 2023$1 $1,388 $539 $(608)$(312)$176 $1,184 
Stock-based Compensation
The following reflects total stock-based compensation expense recognized under all programs:
Three Months Ended March 31,
20242023
Related to L&W RSUs$22 $19 
Related to SciPlay RSUs— 7 
   Total(1)
$22 $26 
(1) Includes $8 million and $11 million of stock-based compensation classified as liability awards as of March 31, 2024 and 2023, respectively.
Restricted Stock Units
A summary of the changes in RSUs outstanding under our equity-based compensation plans during the three months ended March 31, 2024 is presented below:
Number of Restricted Stock UnitsWeighted Average Grant Date Fair Value
Unvested RSUs as of December 31, 2023
2.3 $55.53 
Granted1.3 $99.65 
Vested(1.2)$73.52 
Cancelled— $49.73 
Unvested RSUs as of March 31, 2024
2.4 $71.10 
The weighted-average grant date fair value of RSUs granted during the three months ended March 31, 2024 and 2023 was $99.65 and $56.93, respectively. The fair value of each RSU grant is based on the market value of our common stock at the time of grant. As of March 31, 2024, we had $144 million of unrecognized stock-based compensation expense relating to unvested RSUs amortized over a weighted-average period of approximately 1.5 years. The fair value at vesting date of RSUs vested during the three months ended March 31, 2024 and 2023 was $124 million and $44 million, respectively.
Share Repurchase Program
On March 1, 2022, our Board of Directors approved a share repurchase program under which the Company is authorized to repurchase, from time to time through February 25, 2025, up to an aggregate amount of $750 million of shares of our outstanding common stock. During the three months ended March 31, 2024, we repurchased approximately 0.2 million shares of common stock under the program at an aggregate cost of $25 million (including excise tax).
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Income Taxes
 3 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
We consider new evidence (both positive and negative) at each reporting date that could affect our view of the future realization of deferred tax assets. We evaluate information such as historical financial results, historical taxable income, projected future taxable income, expected timing of the reversals of existing temporary differences and available prudent and feasible tax planning strategies in our analysis. Based on the available evidence, valuation allowances in certain U.S. and non-U.S. jurisdictions remain consistent as of March 31, 2024.
Our income tax (including discrete items) was an expense of $18 million and a benefit of $1 million for the three months ended March 31, 2024 and 2023, respectively. For the three months ended March 31, 2024, our effective tax rate differs from the U.S. statutory rate of 21% primarily as a result of tax benefits related to equity compensation. In all periods, we recorded tax expense relative to pre-tax earnings in jurisdictions without valuation allowances.
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Leases and Other Commitments
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Leases
Our total operating lease expense was $7 million and $6 million for the three months ended March 31, 2024, and 2023, respectively. The total amount of variable and short-term lease payments was immaterial for all periods presented.
Supplemental balance sheet and cash flow information related to operating leases is as follows:
As of
March 31, 2024December 31, 2023
Operating lease right-of-use assets$48 $52 
Accrued liabilities19 19 
Operating lease liabilities34 39 
Total operating lease liabilities$53 $58 
Weighted average remaining lease term, years34
Weighted average discount rate6 %6 %
Three Months Ended March 31,
20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$6 $5 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases$1 $— 
Lease liability maturities:
Remainder of 20242025202620272028ThereafterLess Imputed InterestTotal
Operating leases$15 $18 $13 $7 $4 $1 $(5)$53 
As of March 31, 2024, we did not have material additional operating leases that have not yet commenced.
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Litigation
 3 Months Ended
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Litigation
We are involved in various legal proceedings, including those discussed below. We record an accrual for legal contingencies when it is both probable that a liability has been incurred and the amount or range of the loss can be reasonably estimated (although, as discussed below, there may be an exposure to loss in excess of the accrued liability). We evaluate our accruals for legal contingencies at least quarterly and, as appropriate, establish new accruals or adjust existing accruals to reflect (1) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings and other relevant events and developments, (2) the advice and analyses of counsel and (3) the assumptions and judgment of management. Legal costs associated with our legal proceedings are expensed as incurred. We had accrued liabilities of $11 million and $12 million for all of our legal matters that were contingencies as of March 31, 2024 and December 31, 2023, respectively.
Substantially all of our legal contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss involves a series of complex judgments about future events. Consequently, the ultimate outcomes of our legal contingencies could result in losses in excess of amounts we have accrued.
We may be unable to estimate a range of possible losses for some matters pending against us or our subsidiaries, even when the amount of damages claimed against us or our subsidiaries is stated because, among other things: (1) the claimed amount may be exaggerated or unsupported; (2) the claim may be based on a novel legal theory or involve a large number of parties; (3) there may be uncertainty as to the likelihood of a class being certified or the ultimate size of the class; (4) there may be uncertainty as to the outcome of pending appeals or motions; (5) the matter may not have progressed sufficiently through discovery or there may be significant factual or legal issues to be resolved or developed; and/or (6) there may be uncertainty as to the enforceability of legal judgments and outcomes in certain jurisdictions. Other matters have progressed sufficiently that we are able to estimate a range of possible loss. For those legal contingencies disclosed below, and those related to the previously disclosed settlement agreement entered into in February 2015 with SNAI S.p.a. (“SNAI”), as to which a loss is reasonably possible, whether in excess of a related accrued liability or where there is no accrued liability, and for which we are able to estimate a range of possible loss, the current estimated range is up to approximately $13 million in excess of the accrued liabilities (if any) related to those legal contingencies. This aggregate range represents management’s estimate of additional possible loss in excess of the accrued liabilities (if any) with respect to these matters based on currently available information, including any damages claimed by the plaintiffs, and is subject to significant judgment and a variety of assumptions and inherent uncertainties. For example, at the time of making an estimate, management may have only preliminary, incomplete, or inaccurate information about the facts underlying a claim; its assumptions about the future rulings of the court or other tribunal on significant issues, or the behavior and incentives of adverse parties, regulators, indemnitors or co‑defendants, may prove to be wrong; and the outcomes it is attempting to predict are often not amenable to the use of statistical or other quantitative analytical tools. In addition, from time to time an outcome may occur that management had not accounted for in its estimate because it had considered that outcome to be remote. Furthermore, as noted above, the aggregate range does not include any matters for which we are not able to estimate a range of possible loss. Accordingly, the estimated aggregate range of possible loss does not represent our maximum loss exposure. Any such losses could have a material adverse impact on our results of operations, cash flows or financial condition. The legal proceedings underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate.
Colombia Litigation
Our subsidiary, LNWI, owned a minority interest in Wintech de Colombia S.A., or Wintech (now liquidated), which formerly operated the Colombian national lottery under a contract with Empresa Colombiana de Recursos para la Salud, S.A. (together with its successors, “Ecosalud”), an agency of the Colombian government. The contract provided for a penalty against Wintech, LNWI and the other shareholders of Wintech of up to $5 million if certain levels of lottery sales were not achieved. In addition, LNWI delivered to Ecosalud a $4 million surety bond as a further guarantee of performance under the contract. Wintech started the instant lottery in Colombia but, due to difficulties beyond its control, including, among other factors, social and political unrest in Colombia, frequently interrupted telephone service and power outages, and competition from another lottery being operated in a province of Colombia that we believe was in violation of Wintech’s exclusive license from Ecosalud, the projected sales level was not met for the year ended June 30, 1993.
In 1993, Ecosalud issued a resolution declaring that the contract was in default. In 1994, Ecosalud issued a liquidation resolution asserting claims for compensation and damages against Wintech, LNWI and other shareholders of Wintech for, among other things, realization of the full amount of the penalty, plus interest, and the amount of the bond. LNWI filed separate actions opposing each resolution with the Tribunal Contencioso of Cundinamarca in Colombia (the “Tribunal”), which upheld both resolutions. LNWI appealed each decision to the Council of State. In May 2012, the Council of State upheld the contract default resolution, which decision was notified to us in August 2012. In October 2013, the Council of State upheld the liquidation resolution, which decision was notified to us in December 2013.
In July 1996, Ecosalud filed a lawsuit against LNWI in the U.S. District Court for the Northern District of Georgia asserting many of the same claims asserted in the Colombia proceedings, including breach of contract, and seeking damages. In March 1997, the District Court dismissed Ecosalud’s claims. Ecosalud appealed the decision to the U.S. Court of Appeals for the Eleventh Circuit. The Court of Appeals affirmed the District Court’s decision in 1998.
In June 1999, Ecosalud filed a collection proceeding against LNWI to enforce the liquidation resolution and recover the claimed damages. In May 2013, the Tribunal denied LNWI’s merit defenses to the collection proceeding and issued an order of payment of approximately 90 billion Colombian pesos, or approximately $30 million, plus default interest (potentially accrued since 1994 at a 12% statutory interest rate). LNWI filed an appeal to the Council of State, and on December 10, 2020, the Council of State issued a ruling affirming the Tribunal’s decision. On December 16, 2020, LNWI filed a motion for clarification of the Council of State’s ruling, which was denied on April 15, 2021. On April 22, 2021, LNWI filed a motion for reconsideration relating to that decision, which the Council of State denied on February 21, 2022. On May 24, 2022, the case was transferred from the Council of State to the Tribunal for further proceedings. On August 18, 2022, LNWI filed a constitutional challenge to the Council of State’s December 10, 2020 decision with that court, which was denied on October 7, 2022. On December 7, 2022, LNWI filed an appeal with the Council of State from the denial of the constitutional challenge,
which was denied on May 24, 2023. On June 28, 2023, the Colombian Constitutional Court received the record of the constitutional appeal for further consideration, and on September 26, 2023, that court selected LNWI’s constitutional appeal for further consideration. On April 25, 2024, LNWI was notified that, by means of a decision dated April 5, 2024, a three-judge panel of the Colombian Constitutional Court denied LNWI’s constitutional appeal. On April 30, 2024, LNWI filed a motion to have that panel ruling declared null and void by the full Chamber of the Colombian Constitutional Court.
LNWI believes it has various defenses, including on the merits, against Ecosalud’s claims. Although we believe these claims will not result in a material adverse effect on our consolidated results of operations, cash flows or financial position, it is not feasible to predict the final outcome, and we cannot assure that these claims will not ultimately be resolved adversely to us or result in material liability.
TCS John Huxley Matter
On March 15, 2019, TCS John Huxley America, Inc., TCS John Huxley Europe Ltd., TCS John Huxley Asia Ltd., and Taiwan Fulgent Enterprise Co., Ltd. brought a civil action in the United States District Court for the Northern District of Illinois against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. and South African patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold to regulated casinos in the United States. On April 10, 2019, the defendants filed a motion to dismiss the plaintiffs’ complaint with prejudice. On April 25, 2019, the district court denied the defendants’ motion to dismiss without prejudice pursuant to the court’s local rules, after the plaintiffs advised that they intended to file an amended complaint. The plaintiffs filed their amended complaint on May 3, 2019, and on May 22, 2019, the defendants filed a motion to dismiss the plaintiffs’ amended complaint with prejudice. On March 20, 2020, the district court denied the defendants’ motion to dismiss the plaintiffs’ amended complaint, and defendants filed an answer to the plaintiffs’ amended complaint on June 19, 2020. On June 3, 2020, the trial court granted the defendants’ request to bifurcate proceedings in the case, with discovery to occur first into the statute of limitations and release defenses asserted by the defendants in their motion to dismiss, before proceeding into broader discovery. The trial court set a September 18, 2020, deadline for the parties to complete discovery relating to the statute of limitations and release defenses. On October 28, 2020, the court issued an order extending until January 15, 2021 the deadline for the parties to complete discovery relating to the statute of limitations defense. On February 9, 2021, the defendants filed a motion for summary judgment on their statute of limitations defense, addressing whether plaintiffs had actual knowledge of their claims prior to the start of the limitations period. The district court denied that motion for summary judgment on September 20, 2021. On January 13, 2023, the district court entered an order requiring, among other things, that the plaintiffs make a formal written settlement demand by January 20, 2023, that the defendants respond to that demand in writing by January 27, 2023, and that the parties file a status report by January 31, 2023 confirming that they have complied with the district court’s order. On January 31, 2023, the parties filed a joint status report confirming that they have complied with the district court’s order to make and respond to a formal written demand. Discovery closed on June 1, 2023. On June 30, 2023, the defendants filed a motion for summary judgment. On March 28, 2024, the court issued an order granting in part and denying in part defendants’ motion for summary judgment. On April 30, 2024, the court issued an order setting the matter for a jury trial starting on May 5, 2025. Due to the complexity of the plaintiffs’ claims, and the unpredictability of the outcome of the proceedings in the district court, or any appeal therefrom, we are unable at this time to estimate a range of reasonably possible losses, or any amount within such a range, above the amount we have recorded for this matter, which is the minimum amount of reasonably possible loss.
Tonkawa Tribe Matter
On September 3, 2020, the Tonkawa Tribe of Indians of Oklahoma d/b/a Tonkawa Enterprises filed a putative class action complaint in the United States District Court for the District of Nevada against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. On October 5, 2020, the plaintiff filed a first amended complaint to add Cow Creek Band of Umpqua Tribe of Indians and the Umpqua Indian Development Corp., d/b/a Seven Feathers Casino as a plaintiff. On October 26, 2020, the plaintiffs filed a second amended complaint. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for card shufflers sold or leased to regulated casinos in the United States. The plaintiffs seek to represent a putative class of all regulated United States casinos directly leasing or purchasing card shufflers from the defendants on or after April 1, 2009. The complaint seeks unspecified money damages, the award of plaintiff’s costs of suit, including reasonable attorneys’ fees and expert fees, and the award of pre-judgment and post-judgment interest. On November 19, 2020, the defendants filed a motion to dismiss plaintiffs’ second amended complaint or, in the alternative, to compel arbitration of plaintiffs’ claims. On November 20, 2020, Plaintiffs filed a motion for partial summary judgment, seeking a finding that defendants are collaterally estopped from re-litigating issues litigated in the 2018 litigation versus Shuffle Tech International Corp., Aces Up Gaming, and Poydras-Talrick Holdings. On August 27, 2021, the Nevada district court entered an order transferring the lawsuit to the United States District Court for the Northern District of Illinois. On
May 19, 2022, the Illinois district court granted defendants’ motion to compel arbitration of plaintiffs’ individual claims; stayed all proceedings in the lawsuit pending resolution of the arbitral process; and accordingly dismissed all pending motions without prejudice as moot. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them.
Giuliano and Rancho’s Club Casino Matter
On September 4, 2020, Alfred T. Giuliano, as liquidation trustee for RIH Acquisition NJ, LLC d/b/a The Atlantic Club Casino Hotel filed a putative class action complaint in the United States District Court for the Northern District of Illinois against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The plaintiffs seek to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the Defendants, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the court to treble, the award of plaintiff’s costs of suit, including attorneys’ fees, and the award of pre-judgment and post-judgment interest. On September 8, 2020, Rancho’s Club Casino, Inc., d/b/a Magnolia House Casino filed a putative class action complaint in the United States District Court for the Northern District of Illinois against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. In the complaint, the plaintiff asserts federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiff alleges that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The plaintiff seeks to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the defendants, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the court to treble, the award of plaintiff’s costs of suit, including attorneys’ fees, and the award of pre-judgment and post-judgment interest.
On October 29, 2020, the trial court consolidated the Giuliano and Rancho’s Club Casino matters. On October 30, 2020, the plaintiffs in the consolidated action filed a first amended consolidated complaint. On November 9, 2020, the defendants filed a motion to dismiss the plaintiffs’ first amended consolidated complaint, and also filed a motion to compel arbitration of plaintiff Alfred T. Giuliano’s individual claims. On May 19, 2022, the Illinois district court granted defendants’ motion to compel arbitration; stayed all proceedings in the lawsuit pending resolution of the arbitral process; and accordingly dismissed all pending motions without prejudice. On May 31, 2022, defendants filed a motion to lift the stay of the lawsuit for the limited purpose of amending the court’s May 19, 2022 order to confirm that plaintiff Alfred T. Giuliano must proceed to arbitration on an individual basis rather than a class-wide basis. On June 10, 2022, plaintiff Alfred T. Giuliano filed a notice of voluntary dismissal without prejudice, and the court therefore denied as moot defendants’ motion to lift the stay in an order entered on March 28, 2023. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the consolidated lawsuit are without merit, and intend to vigorously defend against them.
In re Automatic Card Shufflers Litigation Matter
On April 2, 2021, Casino Queen, Inc. and Casino Queen Marquette, Inc. filed a putative class action complaint in the United States District Court for the Northern District of Illinois against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The plaintiffs seek to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the defendants, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the court to treble, the award of plaintiffs’ costs of suit, including attorneys’ fees, and the award of pre-judgment and post-judgment interest. On June 11, 2021, the defendants filed a motion to dismiss plaintiffs’ complaint, which the court denied on May 19, 2022. Discovery closed on December 1, 2023. On February 16, 2024, the defendants filed a motion for summary judgment, which is pending. Also on February 16, 2024, plaintiffs filed a motion for partial summary judgment and a motion for class certification, which are pending. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them.
Mohawk Gaming Enterprises Matter
On November 9, 2020, Mohawk Gaming Enterprises LLC, d/b/a Akwesasne Mohawk Casino Resort, filed a demand for a putative class arbitration before the American Arbitration Association against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. (“Respondents”). In the complaint, the claimant asserts federal antitrust claims arising
from the respondents’ procurement of particular U.S. patents. The claimant alleges that the respondents used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The claimant seeks to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the respondents, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the arbitration panel to treble, and the award of claimant’s costs of suit, including attorneys’ fees. Respondents filed their answering statement on December 9, 2020. On October 29, 2021, the claimant filed a memorandum in support of class arbitration, which Respondents opposed on December 3, 2021. On February 8, 2022, the Arbitrator issued a clause construction award, finding that the arbitration could proceed on behalf of a class or classes. On February 11, 2022, Respondents filed a petition to vacate the award in the New York Supreme Court. The Court denied Respondents’ petition on August 9, 2022, and on August 16, 2022, Respondents appealed to the New York Appellate Division, First Department, which denied Respondents’ appeal on June 22, 2023. On April 15, 2022, Respondents filed a motion to dismiss the claimant’s complaint, which the Arbitrator denied on July 26, 2022. Discovery closed on December 1, 2023. On February 16, 2024, the respondents filed a motion for summary judgment, which is pending. Also on February 16, 2024, claimant filed a motion for partial summary judgment and a motion for class certification, which are pending. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.
Boorn Matter
On September 15, 2022, plaintiff Hannelore Boorn filed a putative class action against L&W, SciPlay Corporation, and Appchi Media Ltd. in the Fayette Circuit Court of the Commonwealth of Kentucky. In her complaint, plaintiff sought to represent a putative class of all persons in Kentucky who, within the past five years, purchased and allegedly lost $5.00 or more worth of virtual coins, in a 24-hour period, playing SciPlay’s online social casino games. The complaint asserted claims for alleged violations of Kentucky’s “recovery of gambling losses” statute and for unjust enrichment, and sought unspecified money damages, the award of reasonable attorneys’ fees and costs, pre- and post-judgment interest, and injunctive and/or other declaratory relief. On October 18, 2022, defendants removed the action to the United States District Court for the Eastern District of Kentucky. On October 26, 2022, plaintiff filed a notice voluntarily dismissing the lawsuit without prejudice. On October 27, 2022, the district court entered an order dismissing the lawsuit. On November 17, 2022, claimant Hannelore Boorn filed an arbitration demand against respondents L&W, SciPlay Corporation, and Appchi Media Ltd. before the American Arbitration Association, pursuant to which she seeks declaratory judgments that (1) SciPlay’s online social casino games constitute gambling under Kentucky law, and (2) SciPlay’s terms of service are void under Kentucky law. On January 12, 2023, respondents filed their answering statement to plaintiff’s arbitration demand. On February 2, 2024, claimant filed a dispositive motion seeking a ruling that SciPlay’s terms of service are void under Kentucky law and that claimant’s claims are not arbitrable. On February 2, 2024, respondents filed a motion for summary disposition seeking dismissal of claimant’s claims. Both motions are pending. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.
Allah Beautiful Matter
On December 19, 2022, claimant Prince Imanifest Allah Beautiful filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The demand asserts claims for alleged violations of New Jersey’s anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by New Jersey players of SciPlay’s online social casino games other than the claimant. On March 7, 2023, respondent filed its answering statement to claimant’s arbitration demand. On March 4, 2024, respondent filed a motion to dismiss the claimant’s arbitration demand, which the Arbitrators denied on April 24, 2024. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.
Sprinkle Matter
On December 12, 2022, claimant Matthew Sprinkle filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The demand asserts claims for alleged violations of Ohio’s anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Ohio players of SciPlay’s online social casino games other than the claimant. On March 7, 2023, respondent filed its answering statement to claimant’s arbitration demand. On March 4, 2024, respondent filed a motion to dismiss the claimant’s arbitration demand, which the Arbitrators denied on April 24, 2024. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.
Sornberger Matter
On March 8, 2023, plaintiff Andrea Sornberger filed a complaint against SciPlay Corporation and SciPlay Games, LLC in the Circuit Court of the Franklin County, Alabama. The complaint asserts claims for alleged violations of Alabama anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Alabama players of SciPlay’s online social casino games other than the plaintiff, the award of interests and costs, and injunctive and other relief. On April 12, 2023, defendants removed the action to the United States District Court for the Northern District of Alabama. On August 24, 2023, plaintiff voluntarily dismissed her complaint without prejudice, and re-filed it in the Circuit Court of Franklin County, Alabama. On September 27, 2023, defendants removed the re-filed action to the United States District Court for the Northern District of Alabama. On October 26, 2023, plaintiff filed a motion to remand the action to the Circuit Court of Franklin County, Alabama, which is pending. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them.
Roberts Matter
On July 25, 2023, claimant Donovan Roberts filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The demand asserts claims for alleged violations of Kentucky’s anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Kentucky players of SciPlay’s online social casino games other than the claimant. On October 6, 2023, respondent filed its answering statement to claimant’s arbitration demand. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.
Ebersole Matter
On July 25, 2023, claimant Christopher Ebersole filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The demand asserts claims for alleged violations of Ohio’s anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Ohio players of SciPlay’s online social casino games other than the claimant. On October 12, 2023, respondent filed its answering statement to claimant’s arbitration demand. On April 1, 2024, respondent filed a motion to dismiss the claimant’s arbitration demand, which is pending. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.
Murnaghan Matter
On July 25, 2023, claimant Hope Murnaghan filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The demand asserts claims for alleged violations of Massachusetts’ anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Massachusetts players of SciPlay’s online social casino games other than the claimant. On October 12, 2023, respondent filed its answering statement to claimant’s arbitration demand. On April 1, 2024, respondent filed a motion to dismiss the claimant’s arbitration demand, which is pending. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.
Ewing Matter
On November 31, 2023, plaintiff Lauren Ewing filed a lawsuit against SciPlay Corporation and SciPlay Games LLC in the Circuit Court for the 14th Judicial District of Tennessee. The complaint asserts claims for alleged violations of Tennessee’s anti-gambling statutes and seeks unspecified money damages, including recover of monies allegedly lost by Tennessee players of SciPlay’s online social casino games. On December 15, 2023, defendants removed the action to the United States District Court for the Eastern District of Tennessee. On January 12, 2024, plaintiff filed a motion to remand the action to the Circuit Court for the 14th Judicial District of Tennessee, which is pending. On January 22, 2024, defendants filed a motion to dismiss plaintiff’s complaint and a motion to compel arbitration of plaintiff’s claims, which are pending. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them.
Aristocrat Matter
On February 26, 2024, Aristocrat Technologies, Inc. and Aristocrat Technologies Australia Pty Limited brought a civil action in the United States District Court for the District of Nevada against L&W, LNW Gaming, Inc. and SciPlay Corporation. Plaintiffs assert claims for alleged trade secret misappropriation, copyright infringement, trade dress infringement and unfair competition, and deceptive trade practices, relating to defendants’ Dragon Train and Jewel of the Dragon games. Plaintiffs’
complaint seeks preliminary and permanent injunctive relief, unspecified damages, the award of reasonable attorneys’ fees and costs, pre-judgment and post-judgment interest, and declaratory relief. Simultaneously with the filing of the complaint on February 26, 2024, the plaintiffs filed a motion to expedite discovery, which the court granted in part and denied in part on March 26, 2024. On April 9, 2024, defendants filed a motion to dismiss plaintiffs’ complaint, which is pending. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them.
v3.24.1.u1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Pay vs Performance Disclosure    
Net Income (Loss) Attributable to Parent $ 82 $ 22
v3.24.1.u1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.1.u1
Description of the Business and Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation and Principles of Consolidation
Basis of Presentation and Principles of Consolidation
The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of L&W, its wholly owned subsidiaries, and those subsidiaries in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation.
In the opinion of L&W and its management, we have made all adjustments necessary to present fairly our consolidated financial position, results of operations, comprehensive income and cash flows for the periods presented. Such adjustments are of a normal, recurring nature. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2023 10-K. Interim results of operations are not necessarily indicative of results of operations to be expected for a full year.
New Accounting Guidance
New Accounting Guidance
There have been no recent accounting pronouncements or changes in accounting pronouncements since those described within the Notes of our 2023 10-K that are expected to have a material impact on our consolidated financial statements.
v3.24.1.u1
Revenue Recognition (Tables)
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Summary of Revenue by Type Within Each Business Segment
Three Months Ended March 31,
20242023
Gaming
Gaming operations$164 $160 
Gaming machine sales205 158 
Gaming systems60 55 
Table products47 46 
Total$476 $419 
SciPlay
Mobile in-app purchases$170 $166 
Web in-app purchases and other(1)
36 21 
Total$206 $186 
iGaming$74 $65 
(1) Other represents $12 million in revenue generated via our proprietary platform during the three months ended March 31, 2024, along with advertising and other revenue, which were not material for the periods presented.
Summary of Contract Liabilities
The following table summarizes the activity in our contract liabilities for the reporting period:
Three Months Ended March 31, 2024
Contract liability balance, beginning of period(1)
$27 
Liabilities recognized during the period16 
Amounts recognized in revenue from beginning balance(13)
Contract liability balance, end of period(1)
$30 
(1) Contract liabilities are included within Accrued liabilities and Other long-term liabilities in our consolidated balance sheets.
The following table summarizes our balances in these accounts for the periods indicated (other than contract liabilities disclosed above):
Receivables
Contract Assets(1)
Beginning of period balance$543 $24 
End of period balance, March 31, 2024
561 24 
(1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets.
v3.24.1.u1
Business Segments (Tables)
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Operating Information by Segment The following tables present our segment information:
Three Months Ended March 31, 2024
GamingSciPlayiGaming
Unallocated and Reconciling Items(1)
Total
Total revenue
$476 $206 $74 $— $756 
AEBITDA(2)
232 62 25 (38)$281 
Reconciling items to net income before income taxes:
D&A
(61)(6)(13)(6)(86)
Restructuring and other
— — (3)(3)(6)
Interest expense
(75)(75)
Other income, net
8 8 
Stock-based compensation
(22)(22)
Net income before income taxes
$100 
(1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes.
(2) AEBITDA is reconciled to net income before income taxes with the following adjustments, as applicable: (1) depreciation and amortization expense and impairment charges (including goodwill impairments); (2) restructuring and other, which includes charges or expenses attributable to: (i) employee severance; (ii) management restructuring and related costs; (iii) restructuring and integration; (iv) cost savings initiatives; (v) major litigation; and (vi) acquisition- and disposition-related costs and other unusual items; (3) interest expense; (4) gain (loss) on debt refinancing transactions; (5) change in fair value of investments and remeasurement of debt and other; (6) other income (expense), net, including foreign currency gains or losses and earnings from equity investments; and (7) stock-based compensation. AEBITDA is presented as our primary segment measure of profit or loss.
Three Months Ended March 31, 2023
GamingSciPlayiGaming
Unallocated and Reconciling Items(1)
Total
Total revenue
$419 $186 $65 $— $670 
AEBITDA(2)
206 54 23 (34)$249 
Reconciling items to net income before income taxes:
D&A
(79)(6)(11)(5)(101)
Restructuring and other(7)(1)(1)(10)(19)
Interest expense(75)(75)
Other expense, net(2)(2)
Stock-based compensation(26)(26)
Net income before income taxes
$26 
(1) Includes amounts not allocated to the business segments (including corporate costs) and reconciling items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes.
(2) AEBITDA is described in footnote (2) to the first table in this Note 3.
v3.24.1.u1
Restructuring and other (Tables)
 3 Months Ended
Mar. 31, 2024
Restructuring and Related Activities [Abstract]  
Summary of Restructuring and Other Costs The following table summarizes pre-tax restructuring and other costs for the periods presented:
Three Months Ended March 31,
20242023
Employee severance and related$1 $9 
Strategic review and related(1)
1 4 
Contingent acquisition consideration(2)
1 — 
Restructuring, integration and other3 6 
Total$6 $19 
(1) Includes costs associated with the SciPlay merger, ASX listing, sale of discontinued operations (including ongoing separation activities), rebranding and related activities. Refer to the Notes in our 2023 10-K for more information regarding these activities.
(2) Represents contingent consideration fair value adjustment (see Note 11).
v3.24.1.u1
Accounts Receivable and Notes Receivable and Credit Quality of Receivables (Tables)
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Summary of components of current and long-term accounts and notes receivable, net
The following table summarizes the components of current and long-term receivables, net:
As of
March 31, 2024December 31, 2023
Current:
Receivables$537 $544 
Allowance for credit losses(33)(38)
Current receivables, net504 506 
Long-term:
Receivables64 40 
Allowance for credit losses(7)(3)
Long-term receivables, net57 37 
Total receivables, net$561 $543 
Summary of the components of total notes receivable, net The following table summarizes geographical delinquencies of total receivables, net:    
As of
March 31, 2024Balances over 90 days past dueDecember 31, 2023Balances over 90 days past due
Receivables:
U.S. and Canada$316 $4 $344 $13 
International285 41 240 50 
     Total receivables601 45 584 63 
Receivables allowance:
U.S. and Canada(16)(3)(17)(3)
International(24)(11)(24)(12)
Total receivables allowance(40)(14)(41)(15)
Receivables, net$561 $31 $543 $48 
Schedule of activity in allowance for notes receivable
The activity in our allowance for receivable credit losses for each of the three months ended March 31, 2024 and 2023 is as follows:
20242023
TotalU.S. and CanadaInternationalTotal
Beginning allowance for credit losses$(41)$(17)$(24)$(40)
Provision(1)— (1)(1)
Charge-offs and recoveries2 1 1 1 
Allowance for credit losses as of March 31$(40)$(16)$(24)$(40)
Schedule of receivables by location - Latin America The following table summarizes our LATAM receivables:
As of March 31, 2024
TotalCurrentBalances over 90 days past due
Receivables$61 $47 $14 
Allowance for credit losses(18)(11)(7)
Receivables, net$43 $36 $7 
v3.24.1.u1
Inventories (Tables)
 3 Months Ended
Mar. 31, 2024
Inventory Disclosure [Abstract]  
Summary of Inventories
Inventories consisted of the following:
 As of
 March 31, 2024December 31, 2023
Parts and work-in-process$126 $113 
Finished goods49 64 
Total inventories$175 $177 
v3.24.1.u1
Property and Equipment, net (Tables)
 3 Months Ended
Mar. 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of components of property plant and equipment
Property and equipment, net consisted of the following:
As of
March 31, 2024December 31, 2023
Land$6 $6 
Buildings and leasehold improvements59 59 
Gaming machinery and equipment738 718 
Furniture and fixtures27 26 
Construction in progress10 7 
Other property and equipment96 94 
Less: accumulated depreciation(690)(674)
Total property and equipment, net$246 $236 
Depreciation expense is excluded from Cost of services, Cost of products and Other operating expenses and is separately presented within D&A.
Three Months Ended March 31,
20242023
Depreciation expense$31 $28 
v3.24.1.u1
Intangible Assets, net and Goodwill (Tables)
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets
The following tables present certain information regarding our intangible assets as of March 31, 2024 and December 31, 2023.
As of
March 31, 2024December 31, 2023
Gross Carrying
Value		Accumulated
Amortization		Net BalanceGross Carrying
Value		Accumulated
Amortization		Net Balance
Amortizable intangible assets:   
Customer relationships$901 $(581)$320 $904 $(567)$337 
Intellectual property
942 (779)163 947 (771)176 
Licenses292 (224)68 290 (217)73 
Brand names129 (121)8 129 (120)9 
Trade names163 (158)5 163 (157)6 
Patents and other11 (7)4 11 (7)4 
Total intangible assets$2,438 $(1,870)$568 $2,444 $(1,839)$605 
Schedule of Intangible Asset Amortization Expense
The following reflects intangible amortization expense included within D&A:
Three Months Ended March 31,
20242023
Amortization expense$37 $58 
The following reflects amortization of software included within D&A:
Three Months Ended March 31,
20242023
Amortization expense$18 $15 
Schedule of Goodwill Reconciliation
The table below reconciles the change in the carrying value of goodwill, by business segment, for the period from December 31, 2023 to March 31, 2024.
Gaming(1)
SciPlayiGamingTotals
Balance as of December 31, 2023
$2,388 $210 $347 $2,945 
Foreign currency adjustments(8)— (12)(20)
Balance as of March 31, 2024
$2,380 $210 $335 $2,925 
(1) Accumulated goodwill impairment charges for the Gaming segment as of March 31, 2024 were $989 million.
v3.24.1.u1
Software, net (Tables)
 3 Months Ended
Mar. 31, 2024
Research and Development [Abstract]  
Schedule of Capitalized Computer Software
Software, net consisted of the following:
 As of
 March 31, 2024December 31, 2023
Software $1,101 $1,083 
Accumulated amortization(941)(925)
Software, net$160 $158 
Schedule of Software Amortization Expense
The following reflects intangible amortization expense included within D&A:
Three Months Ended March 31,
20242023
Amortization expense$37 $58 
The following reflects amortization of software included within D&A:
Three Months Ended March 31,
20242023
Amortization expense$18 $15 
v3.24.1.u1
Long-Term Debt (Tables)
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Schedule of debt outstanding
The following table reflects our outstanding debt (in order of priority and maturity):
As of
March 31, 2024December 31, 2023
 Final MaturityRate(s)Face ValueUnamortized debt discount/premium and deferred financing costs, netBook ValueBook Value
Senior Secured Credit Facilities:
LNWI Revolver2027variable$— $— $— $— 
LNWI Term Loan B2029variable2,167 (26)2,141 2,141 
LNWI Senior Notes:
2028 Unsecured Notes20287.000%700 (6)694 694 
2029 Unsecured Notes20297.250%500 (5)495 495 
2031 Unsecured Notes20317.500%550 (7)543 543 
Other——1 — 1 1 
Total long-term debt outstanding$3,918 $(44)$3,874 $3,874 
Less: current portion of long-term debt(22)(22)
Long-term debt, excluding current portion$3,852 $3,852 
Fair value of debt(1)
$3,963 
(1) Fair value of our fixed rate and variable interest rate debt is classified within Level 2 in the fair value hierarchy and has been calculated based on the quoted market prices of our securities.
v3.24.1.u1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of losses (gains) on interest rate swaps
The following table shows the gain and interest income on our interest rate swap contracts:
Three Months Ended March 31,
20242023
Gain (loss) recorded in accumulated other comprehensive loss, net of tax$6 $(7)
Interest income recorded related to interest rate swap contracts4 3 
Schedule of Effect of Interest Rate Swap Contracts Designated as Cash Flow Hedges
The following table shows the effect of interest rate swap contracts designated as cash flow hedges on interest expense in the consolidated statements of income:
Three Months Ended March 31,
20242023
Total interest expense which reflects the effects of cash flow hedges$(75)$(75)
Hedged item(5)(5)
Derivative designated as hedging instrument9 8 
Schedule of fair value hedges
The following table shows the fair value of our hedges:
As of
Balance Sheet Line Item
March 31, 2024December 31, 2023
Interest rate swapsOther assets$28 $20 
Asset Acquisition, Contingent Consideration
The table below reconciles the change in the contingent acquisition consideration liabilities (including deferred purchase price) for the period from December 31, 2023 to March 31, 2024.
TotalIncluded in Accrued LiabilitiesIncluded in Other Long-Term Liabilities
Balance as of December 31, 2023
$59 $39 $20 
Payments(1)
Fair value adjustments(1)
1 
Other adjustments(2)
(5)
Balance as of March 31, 2024
$54 $41 $13 
(1) Amount included in Restructuring and other (see Note 4).
(2) Represents extinguishment of $5 million in redeemable non-controlling interest liability associated with SciPlay’s acquisition of Alictus Yazilim Anonim Şirketi in 2022, as specified financial targets for the second year were not met. The gain was recorded in other income (expense), net in our consolidated statements of income.
v3.24.1.u1
Stockholders' Equity (Deficit) (Tables)
 3 Months Ended
Mar. 31, 2024
Stockholders' Equity Note [Abstract]  
Schedule of change in the number of shares of Class A common stock
The following tables present certain information regarding our stockholders’ equity as of March 31, 2024 and 2023:
Three Months Ended March 31, 2024
Common StockAdditional Paid in CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive LossTotal
January 1, 2024$1 $1,118 $680 $(751)$(283)$765 
Settlement of liability awards— 65 — — — 65 
Vesting of RSUs, net of tax withholdings and other— (43)— — — (43)
Purchase of treasury stock— — — (25)— (25)
Stock-based compensation— 14 — — — 14 
Net income— — 82 — — 82 
Other comprehensive loss— — — — (23)(23)
March 31, 2024$1 $1,154 $762 $(776)$(306)$835 
Three Months Ended March 31, 2023
 Common StockAdditional Paid in CapitalAccumulated LossTreasury StockAccumulated Other Comprehensive LossNoncontrolling InterestTotal
January 1, 2023$1 $1,370 $517 $(580)$(318)$171 $1,161 
Settlement of liability awards— 25 — — — — 25 
Vesting of RSUs, net of tax withholdings and other— (14)— — — — (14)
Purchase of treasury stock— — — (28)— — (28)
Purchase of SciPlay’s Class A common stock— (8)— — — — (8)
Stock-based compensation— 15 — — — — 15 
Net income— — 22 — — 5 27 
Other comprehensive income— — — — 6 — 6 
March 31, 2023$1 $1,388 $539 $(608)$(312)$176 $1,184 
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award
The following reflects total stock-based compensation expense recognized under all programs:
Three Months Ended March 31,
20242023
Related to L&W RSUs$22 $19 
Related to SciPlay RSUs— 7 
   Total(1)
$22 $26 
(1) Includes $8 million and $11 million of stock-based compensation classified as liability awards as of March 31, 2024 and 2023, respectively.
RSUs outstanding under equity-based compensation plans
A summary of the changes in RSUs outstanding under our equity-based compensation plans during the three months ended March 31, 2024 is presented below:
Number of Restricted Stock UnitsWeighted Average Grant Date Fair Value
Unvested RSUs as of December 31, 2023
2.3 $55.53 
Granted1.3 $99.65 
Vested(1.2)$73.52 
Cancelled— $49.73 
Unvested RSUs as of March 31, 2024
2.4 $71.10 
v3.24.1.u1
Leases and Other Commitments (Tables)
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Lease, Cost [Table Text Block]
Supplemental balance sheet and cash flow information related to operating leases is as follows:
As of
March 31, 2024December 31, 2023
Operating lease right-of-use assets$48 $52 
Accrued liabilities19 19 
Operating lease liabilities34 39 
Total operating lease liabilities$53 $58 
Weighted average remaining lease term, years34
Weighted average discount rate6 %6 %
Three Months Ended March 31,
20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$6 $5 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases$1 $— 
Future minimum lease payments required under our leasing arrangements
Lease liability maturities:
Remainder of 20242025202620272028ThereafterLess Imputed InterestTotal
Operating leases$15 $18 $13 $7 $4 $1 $(5)$53 
v3.24.1.u1
Description of the Business and Summary of Significant Accounting Policies - Narrative (Details)
shares in Millions
 3 Months Ended
Mar. 31, 2024
Segment
shares
Mar. 31, 2023
shares
Accounting Policies [Abstract]    
Number of reportable segments | Segment 3  
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements (in shares) | shares 2 2
v3.24.1.u1
Revenue Recognition - Summary of Revenue by Type (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax $ 756 $ 670
Gaming    
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 476 419
SciPlay    
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 206 186
iGaming    
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 74 65
Gaming operations | Gaming    
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 164 160
Gaming machine sales | Gaming    
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 205 158
Gaming systems | Gaming    
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 60 55
Table products | Gaming    
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 47 46
Mobile in-app purchases | SciPlay    
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 170 166
Web in-app purchases and other(1) | SciPlay    
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax [1] 36 $ 21
Proprietary Platform Revenue | SciPlay    
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax $ 12  
[1]
(1) Other represents $12 million in revenue generated via our proprietary platform during the three months ended March 31, 2024, along with advertising and other revenue, which were not material for the periods presented.
v3.24.1.u1
Revenue Recognition - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]    
Operating Lease, Lease Income $ 127 $ 117
v3.24.1.u1
Revenue Recognition - Summary of Contract Liabilities (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2024
USD ($)
Change In Contract Liabilities [Roll Forward]  
Contract liability balance, beginning of period(1) $ 27 [1]
Liabilities recognized during the period 16
Amounts recognized in revenue from beginning balance (13)
Contract liability balance, end of period(1) $ 30 [1]
[1] (1) Contract liabilities are included within Accrued liabilities and Other long-term liabilities in our consolidated balance sheets.
v3.24.1.u1
Revenue Recognition - Opening and Closing Balances (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]    
Receivables $ 561 $ 543
Contract Assets(1) [1] $ 24 $ 24
[1]
(1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets.
v3.24.1.u1
Business Segments - Additional Information (Details)
 3 Months Ended
Mar. 31, 2024
Segment
Segment Reporting [Abstract]  
Number of reportable segments 3
v3.24.1.u1
Business Segments - Reportable Segment (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax $ 756 $ 670
AEBITDA 281 [1] 249 [2]
D&A (86) (101)
Restructuring and other (6) (19)
Interest expense (75) (75)
Other income (expense), net 8 (2)
Stock-based compensation (22) (26)
Net income before income taxes 100 26
Gaming    
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 476 419
SciPlay    
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 206 186
Operating Segments | Gaming    
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 476 419
AEBITDA 232 [1] 206 [2]
D&A (61) (79)
Restructuring and other 0 (7)
Operating Segments | SciPlay    
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 206 186
AEBITDA 62 [1] 54 [2]
D&A (6) (6)
Restructuring and other 0 (1)
Operating Segments | iGaming    
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 74 65
AEBITDA 25 [1] 23 [2]
D&A (13) (11)
Restructuring and other (3) (1)
Unallocated and Reconciling Items    
Segment Reporting Information [Line Items]    
Revenue from Contract with Customer, Excluding Assessed Tax 0 [3] 0 [4]
AEBITDA (38) [1],[3] (34) [2],[4]
D&A (6) [3] (5) [4]
Restructuring and other (3) [3] (10) [4]
Interest expense (75) [3] (75) [4]
Other income (expense), net 8 [3] (2) [4]
Stock-based compensation $ (22) [3] $ (26) [4]
[1] (2) AEBITDA is reconciled to net income before income taxes with the following adjustments, as applicable: (1) depreciation and amortization expense and impairment charges (including goodwill impairments); (2) restructuring and other, which includes charges or expenses attributable to: (i) employee severance; (ii) management restructuring and related costs; (iii) restructuring and integration; (iv) cost savings initiatives; (v) major litigation; and (vi) acquisition- and disposition-related costs and other unusual items; (3) interest expense; (4) gain (loss) on debt refinancing transactions; (5) change in fair value of investments and remeasurement of debt and other; (6) other income (expense), net, including foreign currency gains or losses and earnings from equity investments; and (7) stock-based compensation. AEBITDA is presented as our primary segment measure of profit or loss.
[2]
(2) AEBITDA is described in footnote (2) to the first table in this Note 3.
[3] (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes.
[4]
(1) Includes amounts not allocated to the business segments (including corporate costs) and reconciling items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes.
v3.24.1.u1
Restructuring and other (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Restructuring Cost and Reserve [Line Items]    
Restructuring and other $ 6 $ 19
Employee severance and related    
Restructuring Cost and Reserve [Line Items]    
Restructuring and other 1 9
Strategic review and related(1)    
Restructuring Cost and Reserve [Line Items]    
Restructuring and other [1] 1 4
Contingent acquisition consideration(2)    
Restructuring Cost and Reserve [Line Items]    
Restructuring and other [2] 1 0
Restructuring, integration and other    
Restructuring Cost and Reserve [Line Items]    
Restructuring and other $ 3 $ 6
[1] (1) Includes costs associated with the SciPlay merger, ASX listing, sale of discontinued operations (including ongoing separation activities), rebranding and related activities. Refer to the Notes in our 2023 10-K for more information regarding these activities.
[2] (2) Represents contingent consideration fair value adjustment (see Note 11).
v3.24.1.u1
Accounts Receivable and Notes Receivable and Credit Quality of Receivables - Components of Accounts and Notes Receivable (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Current:    
Receivables $ 537 $ 544
Allowance for credit losses (33) (38)
Current receivables, net 504 506
Long-term:    
Receivables 64 40
Allowance for credit losses (7) (3)
Long-term receivables, net 57 37
Total receivables, net $ 561 $ 543
v3.24.1.u1
Accounts Receivable and Notes Receivable and Credit Quality of Receivables - Components of Total Notes Receivable, Net (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Receivables, net        
Receivables $ 64 $ 40    
Notes receivable allowance for doubtful accounts (40) (41) $ (40) $ (40)
Accounts and notes receivable, net 561 543    
Notes Receivable        
Receivables, net        
Receivables 601 584    
Notes receivable allowance for doubtful accounts (40) (41)    
Accounts and notes receivable, net 561 543    
United States and Canada        
Receivables, net        
Notes receivable allowance for doubtful accounts (16) (17)    
United States and Canada | Notes Receivable        
Receivables, net        
Receivables 316 344    
Notes receivable allowance for doubtful accounts (16) (17)    
International        
Receivables, net        
Notes receivable allowance for doubtful accounts (24) (24)    
International | Notes Receivable        
Receivables, net        
Receivables 285 240    
Notes receivable allowance for doubtful accounts (24) (24)    
Balances over 90 days past due | Notes Receivable        
Receivables, net        
Receivables 45 63    
Notes receivable allowance for doubtful accounts, balances over 90 days past due (14) (15)    
Notes receivable, net, balances over 90 days past due 31 48    
Balances over 90 days past due | United States and Canada | Notes Receivable        
Receivables, net        
Receivables 4 13    
Notes receivable allowance for doubtful accounts, balances over 90 days past due (3) (3)    
Balances over 90 days past due | International | Notes Receivable        
Receivables, net        
Receivables 41 50    
Notes receivable allowance for doubtful accounts, balances over 90 days past due $ (11) $ (12)    
v3.24.1.u1
Accounts Receivable and Notes Receivable and Credit Quality of Receivables - Allowance for Notes Receivable (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Allowance for credit losses, beginning of period $ (41) $ (40)  
Provision (1) (1)  
Charge-offs and recoveries 2 1  
Allowance for credit losses, end of period $ (40) $ (40)  
Balances over 90 days past due      
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Financing Receivable, Percent Past Due 6.00%   9.00%
United States and Canada      
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Allowance for credit losses, beginning of period $ (17)    
Provision 0    
Charge-offs and recoveries 1    
Allowance for credit losses, end of period (16)    
International      
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Allowance for credit losses, beginning of period (24)    
Provision (1)    
Charge-offs and recoveries 1    
Allowance for credit losses, end of period $ (24)    
v3.24.1.u1
Accounts Receivable and Notes Receivable and Credit Quality of Receivables - Additional Information (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts Receivable, Net, Current $ 504 $ 506
Latin America [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts Receivable, before Allowance for Credit Loss 61  
Accounts Receivable, Allowance for Credit Loss (18)  
Accounts Receivable, after Allowance for Credit Loss 43  
Current | Latin America [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts Receivable, before Allowance for Credit Loss 47  
Accounts Receivable, Allowance for Credit Loss (11)  
Accounts Receivable, Net, Current 36  
Balances over 90 days past due | Latin America [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts Receivable, before Allowance for Credit Loss 14  
Accounts Receivable, Allowance for Credit Loss (7)  
Accounts Receivable, Net, Current $ 7  
v3.24.1.u1
Inventories (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Inventories    
Parts and work-in-process $ 126 $ 113
Finished goods 49 64
Total inventories $ 175 $ 177
v3.24.1.u1
Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Less: accumulated depreciation $ (690)   $ (674)
Total property and equipment, net 246   236
Depreciation expense 31 $ 28  
Land      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross 6   6
Buildings and leasehold improvements      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross 59   59
Gaming machinery and equipment      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross 738   718
Furniture and fixtures      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross 27   26
Construction in progress      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross 10   7
Other property and equipment      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 96   $ 94
v3.24.1.u1
Intangible Assets, net and Goodwill - Intangible Assets (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items]    
Gross Carrying Value $ 2,438 $ 2,444
Accumulated Amortization (1,870) (1,839)
Net Balance 568 605
Customer relationships    
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items]    
Gross Carrying Value 901 904
Accumulated Amortization (581) (567)
Net Balance 320 337
Intellectual property    
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items]    
Gross Carrying Value 942 947
Accumulated Amortization (779) (771)
Net Balance 163 176
Licenses    
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items]    
Gross Carrying Value 292 290
Accumulated Amortization (224) (217)
Net Balance 68 73
Brand names    
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items]    
Gross Carrying Value 129 129
Accumulated Amortization (121) (120)
Net Balance 8 9
Trade names    
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items]    
Gross Carrying Value 163 163
Accumulated Amortization (158) (157)
Net Balance 5 6
Patents and other    
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items]    
Gross Carrying Value 11 11
Accumulated Amortization (7) (7)
Net Balance $ 4 $ 4
v3.24.1.u1
Intangible Assets, net and Goodwill - Intangible Asset Amortization Expense (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
Amortization expense $ 37 $ 58
v3.24.1.u1
Intangible Assets, net and Goodwill - Goodwill (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2024
USD ($)
Goodwill  
Balance at the beginning of the period $ 2,945
Foreign currency adjustments (20)
Balance at the end of the period 2,925
Gaming  
Goodwill  
Balance at the beginning of the period 2,388 [1]
Foreign currency adjustments (8) [1]
Balance at the end of the period 2,380 [1]
Accumulated goodwill impairment charges 989
SciPlay  
Goodwill  
Balance at the beginning of the period 210
Foreign currency adjustments 0
Balance at the end of the period 210
iGaming  
Goodwill  
Balance at the beginning of the period 347
Foreign currency adjustments (12)
Balance at the end of the period $ 335
[1]
(1) Accumulated goodwill impairment charges for the Gaming segment as of March 31, 2024 were $989 million.
v3.24.1.u1
Software, net - Summary of Software and Amortization (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Research and Development [Abstract]      
Software $ 1,101   $ 1,083
Accumulated amortization (941)   (925)
Software, net 160   $ 158
Amortization expense $ 18 $ 15  
v3.24.1.u1
Long-Term Debt - Outstanding Debt (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Face Value $ 3,918  
Unamortized debt discount/premium and deferred financing costs, net (44)  
Book Value 3,874 $ 3,874
Less: current portion of long-term debt (22) (22)
Long-term debt, excluding current portion 3,852 3,852
Fair value of debt [1] $ 3,963  
Senior Notes | 2028 Unsecured Notes    
Debt Instrument [Line Items]    
Rate(s) 7.00%  
Face Value $ 700  
Unamortized debt discount/premium and deferred financing costs, net (6)  
Book Value $ 694 694
Senior Notes | 2029 Unsecured Notes    
Debt Instrument [Line Items]    
Rate(s) 7.25%  
Face Value $ 500  
Unamortized debt discount/premium and deferred financing costs, net (5)  
Book Value $ 495 495
Senior Notes | 2031 Unsecured Notes    
Debt Instrument [Line Items]    
Rate(s) 7.50%  
Face Value $ 550  
Unamortized debt discount/premium and deferred financing costs, net (7)  
Book Value 543 543
Capital Lease Obligations | Other    
Debt Instrument [Line Items]    
Face Value 1  
Unamortized debt discount/premium and deferred financing costs, net 0  
Book Value 1 1
Revolving Credit Facility | Secured Debt | LNWI Revolver    
Debt Instrument [Line Items]    
Face Value 0  
Unamortized debt discount/premium and deferred financing costs, net 0  
Book Value 0 0
Revolving Credit Facility | Secured Debt | LNWI Term Loan B    
Debt Instrument [Line Items]    
Face Value 2,167  
Unamortized debt discount/premium and deferred financing costs, net (26)  
Book Value $ 2,141 $ 2,141
[1] (1) Fair value of our fixed rate and variable interest rate debt is classified within Level 2 in the fair value hierarchy and has been calculated based on the quoted market prices of our securities.
v3.24.1.u1
Long-Term Debt - Terms of Outstanding Debt (Details) - The Credit Agreement - Term Loan
Jan. 16, 2024
Adjusted Secured Overnight Financing Rate  
Debt Instrument [Line Items]  
Margin spread on debt 2.75%
Base Rate  
Debt Instrument [Line Items]  
Margin spread on debt 1.75%
v3.24.1.u1
Fair Value Measurements - Additional Information (Details) - Cash Flow Hedging - Designated as Hedging Instrument - Interest rate swap - USD ($)
$ in Millions
Mar. 31, 2024
Apr. 30, 2022
Mar. 31, 2022
Derivatives Fair Value      
Derivative, average fixed interest rate     2.832%
Notional amounts of the forward contracts $ 700 $ 700  
v3.24.1.u1
Fair Value Measurements - Gains (Losses) on Interest Rate Swaps (Details) - Interest rate swap - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Net income attributable to L&W $ 6 $ (7)
Interest income recorded related to interest rate swap contracts $ 4 $ 3
v3.24.1.u1
Fair Value Measurements - Effect of Interest Rate Swap Contracts Designated as Cash Flow Hedges (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Fair Value Disclosures [Abstract]    
Interest expense $ (75) $ (75)
Hedged item (5) (5)
Derivative designated as hedging instrument $ 9 $ 8
v3.24.1.u1
Fair Value Measurements - Schedule of Fair Value of Hedges (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Other assets | Interest rate swap    
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Derivative fair value $ 28 $ 20
v3.24.1.u1
Fair Value Measurements - Contingent Acquisition Consideration (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2024
USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Beginning balance $ 59
Payments (1)
Fair value adjustments 1 [1]
Business Combination, Contingent Consideration, Liability, Other Adjustments (5) [2]
Ending balance 54
Accrued liabilities  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Beginning balance 39
Ending balance 41
Included in Other Long-Term Liabilities  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Beginning balance 20
Ending balance $ 13
[1] (1) Amount included in Restructuring and other (see Note 4).
[2]
(2) Represents extinguishment of $5 million in redeemable non-controlling interest liability associated with SciPlay’s acquisition of Alictus Yazilim Anonim Şirketi in 2022, as specified financial targets for the second year were not met. The gain was recorded in other income (expense), net in our consolidated statements of income.
v3.24.1.u1
Stockholders' Equity (Deficit) - Changes in Common Stock (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Dec. 31, 2022
Class of Stock [Line Items]        
Total stockholders’ equity $ 835 $ 1,184 $ 765 $ 1,161
Adjustments to Additional Paid in Capital Settlement of Liability Awards and Other 65 25    
Redemption Premium (43) (14)    
Treasury Stock, Value, Acquired, Cost Method (25) (28)    
Stock Repurchased During Period, Value   (8)    
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition 14 15    
Net income 82 27    
Other Comprehensive Income (Loss), Net of Tax (23) 6    
Common Stock [Member]        
Class of Stock [Line Items]        
Total stockholders’ equity 1 1 1 1
Additional Paid-in Capital [Member]        
Class of Stock [Line Items]        
Total stockholders’ equity 1,154 1,388 1,118 1,370
Adjustments to Additional Paid in Capital Settlement of Liability Awards and Other 65 25    
Redemption Premium (43) (14)    
Stock Repurchased During Period, Value   (8)    
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition 14 15    
Retained Earnings [Member]        
Class of Stock [Line Items]        
Total stockholders’ equity 762 539 680 517
Net income 82 22    
Treasury Stock, Common        
Class of Stock [Line Items]        
Total stockholders’ equity (776) (608) (751) (580)
Treasury Stock, Value, Acquired, Cost Method (25) (28)    
AOCI Attributable to Parent [Member]        
Class of Stock [Line Items]        
Total stockholders’ equity (306) (312) $ (283) (318)
Other Comprehensive Income (Loss), Net of Tax $ (23) 6    
Noncontrolling Interest [Member]        
Class of Stock [Line Items]        
Total stockholders’ equity   176   $ 171
Net income   $ 5    
v3.24.1.u1
Stockholders' Equity (Deficit) - Stock Based Compensation Expense Under All Programs (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock-based compensation [1] $ 22 $ 26
Restricted Stock Units    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock-based compensation 22 19
Restricted Stock Units | SciPlay    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock-based compensation 0 7
Liability Awards    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock-based compensation $ 8 $ 11
[1]
(1) Includes $8 million and $11 million of stock-based compensation classified as liability awards as of March 31, 2024 and 2023, respectively.
v3.24.1.u1
Stockholders' Equity (Deficit) - Restricted Stock Units (Details) - Restricted Stock Units - $ / shares
shares in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Number of Restricted Stock Units (in shares) [Roll Forward]    
Unvested units outstanding at the beginning of the period (in shares) 2.3  
Number of RSUs granted (in shares) 1.3  
Number of RSUs vested (in shares) (1.2)  
Number of RSUs cancelled (in shares) 0.0  
Unvested units outstanding at the end of the period (in shares) 2.4  
Weighted Average Grant Date Fair Value (in dollars per share) [Roll Forward]    
Weighted average grant date fair value of unvested units outstanding at the beginning of the period (in usd per share) $ 55.53  
Fair value of RSUs granted (in usd per share) 99.65 $ 56.93
Fair value of RSUs vested (in usd per share) 73.52  
Fair value of RSUs cancelled (in usd per share) 49.73  
Weighted average grant date fair value of unvested units outstanding at the end of the period (in usd per share) $ 71.10  
v3.24.1.u1
Stockholders' Equity (Deficit) - Additional Information (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Feb. 25, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Treasury Stock, Value, Acquired, Cost Method $ 25 $ 28    
Share Repurchase Program, March 2022        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock Repurchase Program, Authorized Amount       $ 750
Treasury Stock, Shares, Acquired 0.2      
Treasury Stock, Value, Acquired, Cost Method $ 25      
Restricted Stock Units        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Fair value of RSUs granted (in usd per share) $ 99.65 $ 56.93    
Unrecognized stock-based compensation expense relating to unvested awards that will be amortized $ 144      
Weighted-average period of amortization 1 year 6 months      
Fair value at vesting date $ 124 $ 44    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number 2.4   2.3  
v3.24.1.u1
Income Taxes - Components of Income Before Tax and Benefit for Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Components of the provision for income taxes    
Income tax (expense) benefit $ (18) $ 1
v3.24.1.u1
Income Taxes - Effective Income Tax Reconciliation (Details)
 3 Months Ended
Mar. 31, 2024
Reconciliation of the U.S. federal statutory tax rate to the actual tax rate is as follows:  
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent 21.00%
v3.24.1.u1
Leases and Other Commitments - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Leases [Abstract]    
Lease, Cost $ 7 $ 6
v3.24.1.u1
Leases and Other Commitments - Schedule of Leases (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Leases [Abstract]      
Operating lease right-of-use assets $ 48   $ 52
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Accrued liabilities   Accrued liabilities
Operating Lease, Liability, Current $ 19   $ 19
Operating lease liabilities 34   39
Total operating lease liabilities $ 53   $ 58
Weighted average remaining lease term, years 3 years   4 years
Weighted average discount rate 6.00%   6.00%
Operating cash flows for operating leases $ 6 $ 5  
Operating leases $ 1 $ 0  
v3.24.1.u1
Leases and Other Commitments - Maturity Schedule (Details)
$ in Millions
Mar. 31, 2024
USD ($)
Leases [Abstract]  
Lessee, Operating Lease, Liability, to be Paid, Year One $ 15
2025 18
2026 13
2027 7
2028 4
Thereafter 1
Less Imputed Interest 5
Total $ 53
v3.24.1.u1
Litigation (Details)
$ in Millions, $ in Billions
Jun. 01, 1999
USD ($)
Jun. 01, 1999
COP ($)
Mar. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Jun. 30, 1993
USD ($)
Litigation          
Loss contingency accrual     $ 11 $ 12  
Legal contingencies, liability range     $ 13    
Ecosalud          
Litigation          
Litigation settlement amount $ 30 $ 90      
Guarantee of business revenue          
Litigation          
Legal contingencies, liability range         $ 5
Performance guarantee          
Litigation          
Surety bond         $ 4
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