Consolidated Revenue from Continuing Operations of $572 Million Up 26% Year-Over-Year

Closed Sale of Lottery Business Generating $5.6 Billion in Gross Cash Proceeds as Company Executes on Vision to be a Leading Cross-Platform Global Game Company

Significantly De-Levering, Reducing Principal Amount of Outstanding Debt⁽¹⁾⁽²⁾ from $8.9 Billion at Quarter-end to Adjusted Outstanding Debt⁽¹⁾⁽²⁾ of $4.0 Billion and Adjusted Net Debt Leverage Ratio⁽¹⁾⁽²⁾ of 3.7x

Returned $140 Million of Capital to Shareholders Through the Repurchase of 2.4 Million Shares⁽³⁾

Light & Wonder, Inc. (NASDAQ: LNW) (formerly known as Scientific Games Corporation) (“Light & Wonder,” “L&W,” or the “Company”) today reported results for the first quarter ended March 31, 2022.

Barry Cottle, President and Chief Executive Officer of Light & Wonder, said, “We kicked off 2022 with a number of significant achievements and strong momentum across our businesses with strong revenue growth of 26% in the quarter. The sale of our Lottery Business was another significant milestone as we de-lever and maximize cash, which transformed our balance sheet reducing our net debt leverage ratio⁽²⁾ from a peak of 10.5x just over 15 months ago to an adjusted net debt leverage ratio⁽¹⁾⁽²⁾ of 3.7x, or by approximately 7 turns. We are delivering on our promises to create great content cross-platform while expanding in high-growth digital markets and enabling a seamless player experience. With a reconstituted balance sheet, sustainable double-digit growth and strong cash generation, we now have the ability to significantly enhance shareholder value through a disciplined approach to capital allocation.”

“With the right assets, at the right time and with the right talent, Light & Wonder is fostering a high performance culture with all the pieces in place to deliver on our vision. We are very excited about the next phase of our journey and look forward to discussing our key strategies and the path to drive shareholder value at our upcoming investor day on May 17th.”

Connie James, Chief Financial Officer of Light & Wonder, said, “The performance during the quarter is reflective of the enthusiasm and energy felt throughout Light & Wonder as we entered 2022 with strong momentum across all our businesses, generating double-digit top and bottom-line growth. I also want to congratulate the team on the successful close of the Lottery Business sale and refinancing transactions. Collectively, these transactions significantly change the complexion of our balance sheet, substantially reduce our outstanding debt, and meaningfully strengthen our credit profile.”

“With our strengthened balance sheet we are actively executing on our capital allocation priorities, including $140 million return on capital through the repurchase of our shares just since the beginning of March. Going forward we are accelerating our focus on our operations as we complete these transactions, and the next phase of our growth strategy will drive further operational excellence throughout our organization creating sustainable and profitable long-term growth.”

BUSINESS AND STRATEGY UPDATE

• Overall, the Company, now rebranded as Light & Wonder, is executing on the key promises made as part of its strategic review, delivering on its double-digit growth profile and making significant progress on its capital allocation priorities to significantly de-lever, return substantial capital to shareholders and invest in key growth opportunities.

• Delivered double digit revenue growth driven by continuing Gaming recovery combined with Gaming operations revenue exceeding 2019 levels and growth in both iGaming and SciPlay year-over-year and sequentially.

• Streamlined the organization with the completed Lottery Business divestiture⁽¹⁾, which closed on April 4, 2022 for $5.6 billion in gross cash proceeds, with the sale of the Sports Betting Business expected to be completed in the third quarter of 2022, subject to applicable regulatory approvals and other customary closing conditions.

• Significantly de-levered and transformed the balance sheet as a result of the April 14, 2022 debt pay down and refinancing transactions, that reduced the principal face value of debt outstanding from $8.9 billion as of March 31, 2022 to an adjusted outstanding debt⁽²⁾⁽³⁾ of $4.0 billion and the adjusted net debt leverage ratio⁽²⁾⁽³⁾ to 3.7x from net debt leverage ratio⁽³⁾ of 10.5x just 15 months ago. These actions are expected to result in approximately $225 million⁽⁴⁾ in annualized cash interest savings. The Company is on a clear path to reach its target net debt leverage ratio range⁽³⁾ of 2.5x to 3.5x with the sale of the Sports Betting Business.

• Returned $140 million of capital to shareholders through the repurchase of approximately 2.4 million shares of common stock since initiation of the program on March 3, 2022, and through May 6, 2022.

• Invested in key growth opportunities, both organically and inorganically in content and digital markets to accelerate growth. Organic investments include R&D, capex, the launch and investment in our new Las Vegas iGaming studio, and expansion into a live dealer market. On April 29, 2022, we acquired Playzido, a targeted acquisition which will fuel our iGaming content offering, and in March SciPlay acquired Alictus, a proven casual game developer as SciPlay rapidly expands in the casual market.

• Hosting an investor day on May 17^th in New York City, to provide an update on our strategy and progress on key initiatives.

SUMMARY RESULTS

We have reflected our Lottery and Sports Betting businesses as discontinued operations, for all periods presented. Unless otherwise noted, amounts, percentages and discussion included below reflect the results of operations and financial condition from the Company’s continuing operations which includes its Gaming, SciPlay and iGaming businesses.

First Quarter 2022 Financial Highlights:

• First quarter consolidated revenue was $572 million compared to $453 million, up 26% compared to the prior year period. Our Gaming business demonstrated continued strong momentum in the North American market including growth in all lines of business year-over-year, with total Gaming operations revenue exceeding 2019 levels. Revenue also benefited from sequential and year-over-year growth at our SciPlay and iGaming businesses.

• Net loss from continuing operations was $67 million compared to a net loss of $88 million in the prior year period. Net loss decreased as a result of higher operating income driven by double digit revenue growth. The prior year net loss from continuing operations included a $25 million gain on remeasurement of Euro denominated debt compared to the current year gain of $7 million.

• Consolidated AEBITDA from continuing operations, a non-GAAP financial measure defined below, was $202 million, up 42% as compared to the prior year period, primarily driven by double-digit AEBITDA growth in Gaming.

• Net cash (used in) provided by operating activities from continuing operations was $(14) million compared to $25 million in the prior year period, and $94 million on a combined basis. The current year cash flows were impacted by an unfavorable change in working capital accounts, primarily related to the timing of disbursements including costs associated with the strategic transactions, higher incentive compensation payout, and timing of inventory purchases to limit supply chain impacts and support future sale levels.

• Combined free cash flow, a non-GAAP financial measure defined below, was $(11) million, which includes both continuing and discontinued operations. The current year combined free cash flow was impacted by the working capital changes described above.

• Adjusted net debt leverage ratio⁽¹⁾, a non-GAAP financial measure defined below, reflecting the April 4^th Lottery Business sale as of March 31, 2022 and subsequent refinancing transactions would have been 3.7x, compared to 6.1x reported. The Company anticipates that it will achieve a net debt leverage ratio⁽¹⁾ within its target range of 2.5x to 3.5x following the completion of the previously announced sale of its Sports Betting Business, which is expected to occur in the third quarter of 2022, subject to applicable regulatory and other customary closing conditions.

First Quarter 2022 Key Highlights

• Gaming revenue increased 45% to $355 million compared to the prior year period, primarily driven by continued market recovery reflecting strong growth in Gaming operations, which exceeded 2019 levels driven by record North America premium installed base units, continued elevated average daily revenue per unit, coupled with growth in Game sales, Systems and Table games businesses. Strong revenue growth resulted in AEBITDA growth of 60% from the prior year comparable period.

• Gaming Operations revenue increased 37% driven by the gaming recovery coupled by the successes of our premium games on the Mural cabinets along with strong content performance. Additionally, we saw positive momentum with the launch of the Kascada Dual Screen, validating our continued investment in R&D to drive our long-term growth. Our North American premium installed base grew for the 7th consecutive quarter, now at a record 43% of our total installed base mix.

• SciPlay revenue grew 5% to $158 million compared to the prior year period, the 2^nd highest quarter in its history. Growth was driven by an increase in average monthly paying users due to a higher payer conversion rate during the period. SciPlay’s core games continued to display strong performance with an average daily users increase of 4% sequentially and monthly active users increase of 7% sequentially.

• Alictus was acquired on March 1, 2022, a Turkey-based hyper-casual game studio, which expands SciPlay’s business in the casual gaming market, growing their game pipeline and diversifying their revenue streams as they advance their strategy to be a diversified global game developer.

• iGaming revenue increased 2% due to continuing momentum in the U.S. market coupled with the strong performance of acquired businesses in the second half of 2021. The U.S market delivered a 63% year-over-year growth driven by the strength of our original content. The prior year revenue benefited from elevated player engagement during COVID-19. Wagers processed through OGS increased from $16.9 billion in the prior year period to $17.5 billion in 2022 and the business achieved record gross gaming revenue in March 2022 for the first time. AEBITDA remained relatively flat from the prior year period due to investments supporting ongoing growth including our upcoming launch of live dealer in the U.S. In April in conjunction with Ontario Canada’s launch of online gaming, we achieved our biggest single market launch, going live with 8 operators on day 1.

LIQUIDITY

• Significant debt reduction and refinancing was completed in April of 2022, which collectively with the Lottery Business proceeds, reduced our principal amount of outstanding debt⁽¹⁾⁽²⁾ from $8.9 billion as of March 31, 2022 to $4.0 billion⁽³⁾, which is expected to result in approximately $225 million⁽⁴⁾ in annualized cash interest savings.

• Adjusted net debt leverage ratio⁽¹⁾, a non-GAAP financial measure defined below, reflecting the April 4^th Lottery business sale as of March 31, 2022 and subsequent refinancing transactions would have been 3.7x, compared to 6.1x reported. The Company anticipates that it will achieve a net debt leverage ratio⁽¹⁾ within its target range⁽¹⁾ of 2.5x to 3.5x following the completion of the previously announced sale of its Sports Betting Business, which is expected to occur in the third quarter of 2022, subject to applicable regulatory and other customary closing conditions.

• Net cash (used in) provided by operating activities from continuing operations was $(14) million compared to $25 million in the prior year period, and $94 million on the combined basis. The current year cash flows were impacted by an unfavorable change in working capital accounts, primarily related to the timing of disbursements including costs associated with the strategic transactions, higher incentive compensation payout, and timing of inventory purchases to limit supply chain impacts and support future sale levels.

• Combined Free cash flow, a non-GAAP financial measure defined below, was $(11) million, which includes both continuing and discontinued operations. The current year combined free cash flow was impacted by the working capital changes described above.

• Capital expenditures from continuing operations were $43 million and including discontinued operations capital expenditures totaled $68 million in the first quarter of 2022.

Earnings Conference Call

As previously announced, Light and Wonder executive leadership will host a conference call on Tuesday, May 10, 2022, at 4:30 p.m. EDT to review the Company’s first quarter results. To access the call live via a listen-only webcast and presentation, please visit explore.lnw.com/investors/quarterly-earnings/ and click on the webcast link under the Investor Information section. To access the call by telephone, please dial: +1 (844) 200-6205 for U.S. or +1 (646) 904-5544 for International and ask to join the Light & Wonder call using conference ID: 897382. A replay of the webcast will be archived in the Investors section on www.lnw.com.

About Light & Wonder

Light & Wonder, Inc. (NASDAQ: LNW) (formerly known as Scientific Games Corporation) (“Light & Wonder” or “L&W”) is a global leader in cross-platform games and entertainment. The Company brings together over 5,600 employees from six continents to connect content between land-based and digital channels with unmatched technology and distribution. Guided by a culture that values daring teamwork and creativity, the Company builds new worlds of play, developing game experiences loved by players around the globe. Its OpenGaming™ platform powers the largest digital-gaming network in the industry. The Company is committed to the highest standards of integrity, from promoting player responsibility to implementing sustainable practices. To learn more, visit www.lnw.com.

You can access our filings with the SEC through the SEC website at www.sec.gov or through our website, and we strongly encourage you to do so. We routinely post information that may be important to investors on our website at explore.lnw.com/investors/, and we use our website as a means of disclosing material information to the public in a broad, non-exclusionary manner for purposes of the SEC’s Regulation Fair Disclosure (Reg FD).

The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document, and shall not be deemed “filed” under the Securities Exchange Act of 1934, as amended.

Forward-Looking Statements

In this press release, Light & Wonder makes “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results or strategies and can often be identified by the use of terminology such as “may,” “will,” “estimate,” “intend,” “plan,” “continue,” “believe,” “expect,” “anticipate,” “target,” “should,” “could,” “potential,” “opportunity,” “goal,” or similar terminology. These statements are based upon management’s current expectations, assumptions and estimates and are not guarantees of timing, future results or performance. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. Actual results may differ materially from those contemplated in these statements due to a variety of risks and uncertainties and other factors, including, among other things:

• the impact of the COVID-19 pandemic and any resulting unfavorable social, political, economic and financial conditions, including the temporary and potentially recurring closure of casinos and lottery operations on a jurisdiction-by-jurisdiction basis;

• risks relating to the intended sale of the Austria Business, for which we are awaiting regulatory approval in Austria, which approval is expected to be received and the transaction to be completed by the end of the second quarter of 2022 and the sale of our Sports Betting business, which is expected to be completed in the third quarter of 2022, both subject to applicable regulatory approvals and in the case of the sale of our Sports Betting business, other customary closing conditions (“Pending Divestitures”), including lack of assurance regarding the timing of completion of the pending and proposed transactions and related risks associated with the ongoing operations and activities of the Sports Betting Business, that certain deferred tax assets may not be realized relative to the anticipated tax gain from these divestitures, that the transactions will yield additional value or will not adversely impact our business, financial results, results of operations, cash flows or stock price;

• our inability to successfully execute our new strategy and impending rebranding initiative;

• our inability to further de-lever and position the Company for enhanced growth with certain net proceeds from the completed Lottery business sale and the Pending Divestitures;

• slow growth of new gaming jurisdictions, slow addition of casinos in existing jurisdictions and declines in the replacement cycle of gaming machines;

• risks relating to foreign operations, including anti-corruption laws, fluctuations in currency rates, restrictions on the payment of dividends from earnings, restrictions on the import of products and financial instability, including the potential impact to our business resulting from the continuing uncertainty following the U.K.’s withdrawal from the European Union;

• difficulty predicting what impact, if any, new tariffs imposed by and other trade actions taken by the U.S. and foreign jurisdictions could have on our business;

• U.S. and international economic and industry conditions;

• level of our indebtedness, higher interest rates, availability or adequacy of cash flows and liquidity to satisfy indebtedness, other obligations or future cash needs;

• the transition from LIBOR to SOFR, which may adversely affect interest rates;

• inability to reduce or refinance our indebtedness;

• restrictions and covenants in debt agreements, including those that could result in acceleration of the maturity of our indebtedness;

• competition;

• inability to win, retain or renew, or unfavorable revisions of, existing contracts, and the inability to enter into new contracts;

• the impact of U.K. legislation approving the reduction of fixed-odds betting terminals maximum stakes limit on LBO operators, including the related closure of certain LBO shops;

• inability to adapt to, and offer products that keep pace with, evolving technology, including any failure of our investment of significant resources in our R&D efforts;

• changes in demand for our products and services;

• inability to benefit from, and risks associated with, strategic equity investments and relationships;

• inability to achieve some or all of the anticipated benefits of SciPlay being a standalone public company;

• dependence on suppliers and manufacturers;

• SciPlay’s dependence on certain key providers;

• ownership changes and consolidation in the gaming industry;

• fluctuations in our results due to seasonality and other factors;

• security and integrity of our products and systems, including the impact of any security breaches or cyber-attacks;

• protection of our intellectual property, inability to license third-party intellectual property and the intellectual property rights of others;

• reliance on or failures in information technology and other systems;

• litigation and other liabilities relating to our business, including litigation and liabilities relating to our contracts and licenses, our products and systems, our employees (including labor disputes), intellectual property, environmental laws and our strategic relationships;

• reliance on technological blocking systems;

• challenges or disruptions relating to the completion of the domestic migration to our enterprise resource planning system;

• laws and government regulations, both foreign and domestic, including those relating to gaming, data privacy and security, including with respect to the collection, storage, use, transmission and protection of personal information and other consumer data, and environmental laws, and those laws and regulations that affect companies conducting business on the internet, including online gambling;

• legislative interpretation and enforcement, regulatory perception and regulatory risks with respect to gaming, especially internet wagering, social gaming and sports wagering;

• changes in tax laws or tax rulings, or the examination of our tax positions;

• opposition to legalized gaming or the expansion thereof and potential restrictions on internet wagering;

• significant opposition in some jurisdictions to interactive social gaming, including social casino gaming and how such opposition could lead these jurisdictions to adopt legislation or impose a regulatory framework to govern interactive social gaming or social casino gaming specifically, and how this could result in a prohibition on interactive social gaming or social casino gaming altogether, restrict our ability to advertise our games, or substantially increase our costs to comply with these regulations;

• expectations of shift to regulated digital gaming or sports wagering;

• inability to develop successful products and services and capitalize on trends and changes in our industries, including the expansion of internet and other forms of digital gaming;

• the continuing evolution of the scope of data privacy and security regulations, and our belief that the adoption of increasingly restrictive regulations in this area is likely within the U.S. and other jurisdictions;

• incurrence of restructuring costs;

• goodwill impairment charges including changes in estimates or judgments related to our impairment analysis of goodwill or other intangible assets;

• stock price volatility;

• failure to maintain adequate internal control over financial reporting;

• dependence on key executives;

• natural events that disrupt our operations, or those of our customers, suppliers or regulators; and

• expectations of growth in total consumer spending on social casino gaming.

Additional information regarding risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated in forward-looking statements is included from time to time in our filings with the SEC, including the Company’s current reports on Form 8-K and quarterly reports on Form 10-Q and its latest Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2021 on March 1, 2022 (including under the headings “Forward Looking Statements” and “Risk Factors”). Forward-looking statements speak only as of the date they are made and, except for our ongoing obligations under the U.S. federal securities laws, we undertake no and expressly disclaim any obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.

You should also note that this press release may contain references to industry market data and certain industry forecasts. Industry market data and industry forecasts are obtained from publicly available information and industry publications. Industry publications generally state that the information contained therein has been obtained from sources believed to be reliable, but that the accuracy and completeness of that information is not guaranteed. Although we believe industry information to be accurate, it is not independently verified by us and we do not make any representation as to the accuracy of that information. In general, we believe there is less publicly available information concerning the international gaming, social and digital gaming industries than the same industries in the U.S.

Due to rounding, certain numbers presented herein may not precisely agree or total to the previously reported amounts.