Taking stock : 15 % of Light & Wonder ’ s market cap now trades on the ASX
“ Those throwback 80s-style conglomerates where lots of different businesses doing different things are rolled up together only fit in a portfolio because the same owner owns them . That model doesn ’ t work ” own sites . He ’ s gone on the record saying he ’ ll buy 3,000 gaming machines starting in January 2024 .”
Wilson admits he didn ’ t understand the scale of the Philippines opportunity before he visited . And now ? He believes it ’ s aiming to create a gaming hub rivalling Macau .
BUILDING FROM A STRONG BASE IN ASIA Light & Wonder claims to own around 50 % of the Asian machine market – and it has another ace up its sleeve for the region . Wilson credits its dominant position to the game developer behind 88 Fortunes , Quin You , who “ really mastered the art of building games for the Asian population .”
Wilson says that You understands intrinsically what appeals to the Chinese audience , creating authentic titles that position the supplier to profit from opportunities in the region .
But Light & Wonder is an omnichannel business today , with thriving online and social arms . Considering Pagcor is preparing to launch its own online casino , is there hope for a meaningful online push ?
That would require more legal certainty around the streaming model – where a physical device broadcasts through a web browser – as Light & Wonder takes compliance and its regulatory condition very seriously . “ We ’ d only ever launch in that market if the regulations were really clear and we could do it in a way that wouldn ’ t jeopardise anything ,” Wilson says .
But as digital-first suppliers step up their plans for world domination , Light & Wonder is coming up against market rivals who don ’ t have the same compliance obligations . Without the obligations and revenue coming from land-based operations , igaming suppliers can – and have – taken a more relaxed view to what constitutes grey or black markets .
THE WHITE , GREY AND BLACK CONUNDRUM At a time when the traditional landbased giants are digitising their portfolios , can they really compete against rivals that can pursue growth wherever and however they see it ?
“ I think we are disadvantaged , if I ’ m honest ,” Wilson says bluntly .
“ We ’ re competing with companies taking bets in black markets where they ’ re not paying taxes ,” he explains . “ Margins are better so they ’ re better capitalised to make investments . Regulators need to take a long hard look about who ’ s operating in their ecosystem and whether they are comfortable with that .”
The general response from regulators is that their remit only covers a small patch of territory . Light & Wonder
JULY ICE - LONDON AUGUST 2024 2019 • ISSUE 135 117 • 00 31