Light & Wonder’s game installs surge in Australia, led by Lightning Gongs and Shenlong Unleashed; legal battles with Aristocrat may affect near-term outlook but long-term growth looks promising, says J.P. Morgan analyst
The Nevada-headquartered corporation that offers cross-platform content and powerful systems that “give players what they want”, Light & Wonder, is enjoying a noticeable uptick in game installations across Australia, according to a June 12 investor note from J.P. Morgan analyst Don Carducci.
“Very Strong Start” for Baron Cabinet in NSW
Carducci highlighted the strong early performance of the company’s Baron cabinet in New South Wales, calling its rollout “a very strong start.”
Thunder Empire is also showing promising traction, averaging around 500 new installations per month, bringing its total to roughly 3,000 machines in New South Wales and Queensland.
At the same time, industry attention is turning to a key legal development involving rival Aristocrat Leisure.
A decision is expected on June 23 regarding an expansion of discovery in an ongoing intellectual property case.
Carducci believes the court is likely to side with Aristocrat. Still, the J.P. Morgan analyst remains optimistic about Light & Wonder’s long-term outlook.
“While short-term impacts remain likely, we are constructive on longer-term trends and opportunities,” he wrote.
Huff N’ Even More Puff, in the Lead
Among Light & Wonder’s current offerings, Lightning Gongs continues to lead growth, while Shenlong Unleashed has now marked eight consecutive months of installation gains, accounting for 6% of the company’s installed base.
Performance-wise, Huff N’ Even More Puff is currently Light & Wonder’s top-performing game, running at 1.8 times the house average.
Huff N’ More Puff and Lightning Gongs follow at 1.1 times. However, installations of Huff N’ More Puff have declined for four straight months, and the recent retirement of Jewel of the Dragon also led to a drop in net installs.
“Lightning Gongs retains strong install momentum; and as a result, we believe this, Shenlong and Huff N’ Even More Puff will be the key drivers of incremental growth from here,” Carducci told investors.
Stalled Growth Triggers by Injunction
Carducci also addressed the impact of the Dragon Train litigation, which had led to 4,700 installations across New South Wales and Queensland by May 2025.
However, following an injunction, growth has stalled. “Following the Dragon Train injunction and subsequent uncertainty, net installs have sensibly gone slightly backwards,” he noted.
He compared it to Dragon Link (15,800 machines), Lightning Link (4,200), and Dragon Cash (5,100), adding: “Unsurprisingly, Dragon Train had been the key driver of the climbing turnover ratio to date; hence, the pause in installs means no mix benefit/effect.”
While Aristocrat and Konami maintain the lead in New South Wales, Light & Wonder now holds the top supplier spot in Queensland.
Still, Carducci cautions that legal disputes and tariff concerns may cloud short-term sentiment.
“In the longer term, we believe market conditions will naturally favor both [Light & Wonder and Aristocrat] as a near-duopoly; however, tariff uncertainty and litigation overhang will likely continue to weigh on sentiment in the near term.”, he added.
