Light & Wonder: Cutting Sweeps Could Improve Jackpot Party Casino’s Performance

In its Q2 and Q3 2025 earnings call, the company shared optimism on the direction of its business, particularly SciPlay, its social gaming arm. Light & Wonder’s leadership acknowledges that their ‘top-line erosion’ is linked to competition with sweepstakes casino operations, particularly unregulated ones. However, as regulations tighten for sweeps, Light & Wonder thrives. 

In a statement, CEO Matt Wilson suggested that in markets where sweepstakes casinos are restricted or eliminated, the company has observed “a noteworthy uplift” on its social casino platforms.

Light & Wonder Sees “Top-Line Erosion” Due to Unregulated Sweeps

During the company’s third-quarter earnings call, execs admitted that unregulated sweepstakes casinos continue to hurt their reviews. In addition to its gaming products, Light & Wonder also operates social gaming through SciPlay. 

SciPlay features free-to-play games, and the platform earns from in-app purchases, rather than traditional real-money wagering. It boasts a broad gaming portfolio, with Jackpot Party and Hot Shot Casino as two of its biggest brands. Company execs say that an unregulated sweepstakes industry has been hurting their business. 

During the Q3 earnings call, the company reported $197 million in revenues, which reflects a 4% year-over-year decrease. However, execs clarified that two of their games, 88 Fortunes and Quick Hit Slots, achieved their fifth and 15th consecutive quarters of record earnings.

Jackpot Party Casino, the company’s most popular brand, was also hit with declining revenues. The company reported a decrease in its “average monthly players”, reflecting a 4% year-over-year decline.

Light & Wonder Looks at the Brighter Side

According to CEO Matt Wilson, the trend will reverse soon. In a statement, Wilson remains confident in the growth prospects of its social platform. He added that “there is reason to believe the general environment will improve as initial data from states where the ban is in effect becomes available”. 

They say that while they can’t control the regulatory changes, they can always optimize their business model. Light & Wonder execs see a return to growth in 2026, assuming they can capitalize on these regulatory shifts.

Light & Wonder is counting on Jackpot Party as it is seen to benefit from a revamped economy and tightening of sweepstakes casino regulations. In short, with more restrictions on sweepstakes casinos, the better it will be for Jackpot Party and Light & Wonder in general.

REFERENCES:

• Q3 Earnings Call Transcript
• Light & Wonder website
• Investing.com