(AsiaGameHub) – Light & Wonder has become the latest iGaming company to highlight concerns over how geopolitical uncertainties are affecting the gambling industry.
The slot manufacturer estimates that external factors beyond its control, particularly US President Donald Trump’s ongoing trade tariffs on multiple countries and recent adjustments to remote gaming taxation in the UK, will result in a financial impact of $30 million (£22 million).
In light of these challenges, Light & Wonder forecasts only single-digit EBITDA growth for 2026.
Regarding the UK tax changes—which have already raised remote gaming duty from 21% to 40%—Matt Wilson, Light & Wonder’s President and Chief Executive Officer, assured investors the company is working with operators to manage the effects but acknowledged these shifts would “begin to pressure our growth trajectory.”
A multitude of concerns
Like many global industries, gaming continues to grapple with the unpredictability introduced by Trump’s inconsistent tariff policies on imports from various nations.
Back in May 2025, Light & Wonder indicated it was exploring relocating part of its supply chain to Mexico to reduce the economic consequences of the tariffs through the USMCA free trade agreement among the United States, Canada, and Mexico.
Since then, additional financial pressures have emerged from changes in the UK’s tax framework—a major market for Light & Wonder—alongside broader economic impacts driven by rising tensions between the US, Israel, and Iran.
The latter situation has led to significant increases in global oil prices and poses potential risks to the gaming sector in several Asian countries near active conflict zones.
Despite these difficulties, Wilson reported that gross gaming revenue remains stable in the US during the first quarter.
“GGR’s holding up nicely in the face of a lot of geopolitical risk,” he told investors.
“[There are] a number of different factors that could be hitting the US consumer, but they’re powering right through it at the moment. It’s something to watch closely. You look at the fee per day numbers, you look at the reported GGR, it looks like the market’s holding on very well.”
Nonetheless, Light & Wonder began the year on a positive note despite prevailing uncertainty, recording consolidated revenue growth of 2% year-over-year to $790 million (£580 million) and AEBITDA growth of 5% YoY to $327 million (£240 million).
This growth was primarily fueled by improvements in both its gaming segment, which saw a 3% YoY increase to $512 million (£375.9 million), and its iGaming division, which expanded by 18% YoY to $91 million (£66.8 million).
Can AI offer solutions?
In addition to efforts aimed at addressing regulatory and geopolitical challenges, Light & Wonder has allocated $20 million (£14.7 million) toward investments in AI infrastructure and new market expansion, as well as $10 million (£7.4 million) for legacy legal expenses.
Wilson stressed the company is advancing its AI initiative with “urgency and discipline,” which started in 2025.
He added: “We’ve got 43 initiatives and work streams that we’re working on across technology, content, SciPlay, and our operations. We think it can make a very meaningful impact on our organisation over time.”
Oliver Chow, Light & Wonder’s Chief Financial Officer, described building AI infrastructure as a “meaningful driver of efficiency and capability”—two critical elements as the company seeks to overcome global uncertainties and evolving regulatory landscapes.
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