Light & Wonder Acquires Australian Studio Big Time Gaming for AUD 1.2 Billion

Light & Wonder confirmed on Friday that it has reached a binding agreement to acquire Big Time Gaming (BTG), the Australian studio best known for inventing the Megaways reel mechanic, in a deal worth approximately AUD 1.2 billion (USD 790 million). The transaction, structured as 65% cash and 35% L&W stock, will see BTG founders Nik Robinson, Ian Schmidt and Huw McIntosh retain advisory roles for a minimum of three years following completion. The deal is subject to approval from the Australian Foreign Investment Review Board and gaming regulators in the United Kingdom, Malta and Gibraltar.

The acquisition brings Megaways — currently licensed to more than 20 third-party studios including Pragmatic Play, Blueprint and Red Tiger — directly into Light & Wonder's content portfolio. Industry analysts estimate the Megaways licensing program generates between USD 45 million and USD 60 million in annual royalty revenue, with more than 300 live titles across operator sites globally. L&W CEO Matt Wilson told investors on a morning call that existing licensee agreements would be honoured through their current terms, though the company plans to review commercial structures as contracts come up for renewal from 2028 onwards.

The move marks L&W's largest content acquisition since its rebrand from Scientific Games and reflects a broader consolidation trend among tier-one suppliers seeking to lock down proprietary mathematical IP. BTG has shipped only a handful of its own branded Megaways titles in recent years, including Bonanza Megaways and White Rabbit Megaways, with the studio focusing primarily on licensing and bespoke mechanic development such as Megaclusters and Megapays. Combined with L&W's existing OpenGaming platform distribution, the deal gives the Las Vegas-headquartered supplier end-to-end control over one of the industry's most recognisable brand mechanics.

Competitor reaction has been mixed, with several European studios expressing concern over the long-term pricing of Megaways licences under new ownership. One London-based studio head, speaking on condition of anonymity, noted that the mechanic has become "effectively a category" in operator lobbies and that any material increase in royalty rates could reshape slot economics across regulated European markets. Light & Wonder shares rose 4.7% in pre-market trading following the announcement, while the deal is expected to be earnings-accretive within the first full year of integration.