Light & Wonder (LNW) Status Update summary

Litigation and compliance update

• Ongoing litigation with Aristocrat expanded to include a trade secret misappropriation claim regarding Jewel of the Dragon; company is responding to the amended complaint and expects to complete its response by April 11.

• Voluntarily ceased commercialization and offered to replace Jewel of the Dragon to minimize customer disruption; the game represents less than 1% of the premium installed base in North America.

• Independent third-party audit found no evidence of contagion in Hold & Spin games released post-2021; audit scope now expanded to include all such games released before mid-2021 due to discovery of widely distributed Aristocrat par sheets.

• Review completion expected within four weeks, with updates to be provided at the next earnings call.

Financial and operational impact

• Removal of Jewel of the Dragon is not expected to have a material effect on revenue or guidance; 2025 AEBITDA target of $1.4 billion and adjusted NPATA range of $565–$635 million reaffirmed.

• Revenue impact from Jewel of the Dragon estimated at low to mid single-digit millions, considered immaterial to the broader business.

• Legal expenses to be managed within the previously guided $40 million range.

• No restrictions on the buyback program; capital allocation strategy remains unchanged.

Governance and process enhancements

• Enhanced governance protocols implemented, including checks on personal devices for new game designers.

• Ongoing certification and review processes for Hold & Spin games to prevent recurrence of issues; future games will be checked for mathematical value contamination.

• No evidence of contagion found in other games or studios; issue isolated to Hold & Spin category.