Light & Wonder CEO Talks About the Gambling Industry and Prediction Markets

Matt Wilson, president and CEO of Light & Wonder, spoke Tuesday on the opening day of the 47th annual Gaming Conference, hosted by the Nevada Society of Certified Public Accountants at Circa Las Vegas. He talked about the current state of the gambling industry while also pointing out that it should take a strong stance against the rapidly evolving prediction markets.

Industry Stays Strong Despite Inflation and Rising Costs, Wilson Argued

He said that while inflation, rising gas and housing prices have driven up costs, players continue to gamble. He described a “K-shaped economy” as evident in the gaming industry, where middle- and upper-income groups are becoming wealthier while lower-income groups face increasing financial pressure. 

Wilson noted that this dynamic is visible in Las Vegas, pointing out that properties such as Wynn Resorts, ARIA Resort & Casino, and Bellagio are reporting strong performance and record profits. Meanwhile, lower-tier properties on the Las Vegas Strip are struggling, he argued.

Wilson also talked about Light & Wonder’s financial strategy, stating that the company established a long-term expansion plan in 2022, aiming to increase its EBITDA from $900 million to $1.4 billion. A key assumption of this strategy was that three major iGaming states would launch between 2022 and 2025.

However, Wilson admitted that the company was completely wrong on that front, noting that not a single incremental state has come online. While they had anticipated a massive wave of iGaming expansion, Wilson pointed out that only seven states offer iGaming today.

Another thing that hurt Light & Wonder’s revenue last year, which Wilson did not talk about, was a lawsuit with Dragon Link, which ended in a costly settlement.

Wilson Commented On the Rapid Expansion of Prediction Markets

Wilson also addressed the rise of prediction markets, saying their growth had accelerated sharply over the past six months. He pointed out that platforms such as Kalshi and Polymarket have reached valuations he described as more than double those of DraftKings and FanDuel. Wilson further characterized the development as both striking and concerning, arguing that spending on prediction markets is coming at the expense of other forms of gambling.

Light & Wonder’s CEO added that while his company does not directly compete in that space, it operates in the iGaming sector and sees potential long-term competitive pressure if the model expands further. He concluded that the industry may need to coordinate to better understand and potentially slow the rapid expansion of prediction markets. Wilson even suggested that it is difficult to argue that they fall outside the scope of regulated gambling, something that prediction market platforms have vehemently denied.

Interestingly, it is not only gambling companies that want more regulation of prediction market platforms. In fact, recently, a large coalition of agricultural organizations has urged the CFTC to review prediction markets tied to commodity prices, citing risks to traditional futures trading