Light & Wonder Braces for UK Tax Impact Despite Strong iGaming Growth

The global gambling technology giant Light & Wonder has released its financial results for the second quarter of 2026, showcasing a complex picture of growth and regulatory headwinds. Total group revenue reached $828 million, a 2 percent increase compared to the previous year. The star performer was once again the iGaming sector, which saw revenue climb by 14 percent to $92 million, continuing a trend of digital expansion that has defined the company’s recent trajectory.

However, the outlook is tempered by significant tax changes in one of the company's key markets. The United Kingdom has implemented a sharp increase in Remote Gaming Duty, which jumped from 21 percent to 40 percent in April. Furthermore, a new 25 percent remote betting duty is slated for implementation next April, creating a challenging environment for operators and suppliers alike. These fiscal measures are expected to weigh on the company’s financial performance during the latter half of 2026.

Numbers and facts

Breaking down the divisional performance, the traditional Gaming segment remains the largest revenue source, contributing $554 million after a 5 percent increase. This was bolstered by an 18 percent rise in gaming operations revenue, partly due to the expansion of the North American premium installed base. In contrast, SciPlay, the social casino and mobile gaming arm, saw revenue drop by 9 percent to $182 million. Light & Wonder attributed this decline to softer conditions within the global social casino market.

“We delivered another quarter of strong financial performance. The results reflect our continued focus on recurring revenue, the enhanced profitability we’ve driven across the business and the strength of our cash flow generation.” - Matthew Wilson, President and CEO of Light & Wonder

Net profit for the quarter rose by 26 percent to $120 million, a result of disciplined cost management and strong service revenue. However, for the first half of 2026, operating profit slipped by 5 percent to $352 million, largely influenced by $50 million in legal settlements and contingencies recorded earlier in the year.

Background

CEO Matthew Wilson’s warnings highlight the volatility of regulated gambling markets. While the company is seeing success with its proprietary games and expansion into North America, the UK tax situation remains a primary concern. Wilson expects iGaming growth to moderate in the coming months as the full impact of the 40 percent duty is realized. To counter this, Light & Wonder is leaning into its content-centric model, hoping that high-quality game titles will maintain player demand even as tax burdens rise.

Why it matters for German players

For players in Germany, the stability of international suppliers like Light & Wonder is crucial for the variety of games available in licensed online casinos. The German market is strictly regulated under the State Treaty on Gambling 2021 (GlüStV 2021), which includes a central monitoring system known as LUGAS. This system ensures that the monthly deposit limit of 1,000 euros is enforced across all licensed operators. Additionally, players face a maximum stake of 1 euro per spin on virtual slot machines.

As global companies seek to offset losses from tax hikes in places like the UK, they often focus more resources on stable, regulated markets like Germany. This means German players can expect a steady influx of new, high-quality slots from reputable providers. It is essential for players to use only GGL-licensed platforms to ensure their consumer rights are protected and that the games are fair and certified.

What it means for GGL-licensed casinos

Casinos operating with a GGL license benefit from Light & Wonder's continued investment in first-party content. The shift in tax strategy in the UK might accelerate the rollout of new game mechanics tailored for the European market. Operators in Germany rely on these innovations to stay competitive while adhering to the strict player protection rules of the GlüStV 2021. The focus on recurring revenue and long-term service agreements by suppliers ensures that German casinos have access to reliable software and maintenance, providing a safe environment for the end user.