"Gaming company Light & Wonder adjusting NASDAQ listing location"
Light & Wonder Shifts Focus, Delists from NASDAQ and Moves to ASX
In a strategic move aimed at better aligning with its long-term growth plans, gaming company Light & Wonder has announced its decision to delist from NASDAQ and move to a sole primary listing on the Australian Stock Exchange (ASX). This transition, expected to be completed by November 2025, will see the company operate within a deeper, more liquid market.
CEO Matt Wilson explained that this move will serve their growing shareholder base and leverage the strong trading volume Light & Wonder has already experienced on ASX, where about 37% of equity trades have occurred since the secondary listing began in May 2023.
Light & Wonder's growth plans extend beyond its current North American operations. The company is seeking to diversify its operations globally, with a particular focus on regulated markets. This strategy is evident in their recent acquisition of Grover Gaming’s charitable gaming business, which is distributed across five U.S. states. This move positions Light & Wonder to capitalize on regulated charitable gaming segments, which may have parallels for growth in other international regulated markets.
While specific plans for markets such as Canada, Mexico, and the Philippines are not yet detailed, Light & Wonder's focus on growth opportunities in regulated markets suggests potential expansion in these regions.
In North America, the game Huff 'n More Puff has been a significant revenue generator, contributing almost a quarter of the company's revenue. Despite a downward trend, Wilson maintains that this is a natural occurrence as the initial buzz wears out. He remains confident that things will turn around before long.
The slump in sales for land-based companies in North America, due to a decrease in tourist numbers and travel, is seen as temporary. Light & Wonder's brand has been pushing steadily in Canada and Mexico, indicating a strong presence in these markets.
The company is holding considerable liquidity in a deep and existing market with the move to ASX. This move was a carefully considered decision, aligned with Light & Wonder's long-term strategy.
Meanwhile, another Australian major, PointsBet, has sold its assets and is focusing on its home market and Canada. The decision by Light & Wonder to delist from NASDAQ and move to ASX follows a similar trend among companies seeking to better align with their growth plans and operate within deeper, more liquid markets.
In light of their long-term growth strategies, Light & Wonder may consider expanding their online gaming business to various regulated markets, potentially venturing into online gambling, finance, and investing. This global diversification could be a significant shift for the company, allowing them to invest in various business opportunities.
With their move to the Australian Stock Exchange (ASX), Light & Wonder aims to leverage the strong trading volume and deeper market liquidity, potentially funding these future business endeavors.
