LNW Light and Wonder Inc

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Description of the Business

We are a leading cross-platform global games company with a focus on content and digital markets. Our portfolio of revenue-generating activities primarily includes supplying game content and gaming machines, CMSs and table game products and services to licensed gaming entities; providing social casino and other mobile games, including casual gaming, to retail customers; and providing a comprehensive suite of digital gaming content, distribution platforms, player account management systems, as well as various other iGaming content and services. We report our results of operations in three business segments—Gaming, SciPlay and iGaming—representing our different products and services.

Our common stock is listed on The Nasdaq Stock Market under the ticker symbol “LNW.” Our common stock is also listed as CDIs on the ASX and commenced active trading on May 22, 2023 (AEST) under the ticker symbol “LNW.”

On August 8, 2023, we entered into a definitive agreement to acquire the remaining equity interest in SciPlay not already owned by us (approximately 17%) pursuant to a merger in which SciPlay’s shareholders will receive $22.95 for each share of SciPlay Class A common stock they own (subject to certain exceptions set forth in the Merger Agreement, dated as of August 8, 2023, by and among L&W, Bern Merger Sub, Inc. and SciPlay (the “Merger Agreement”)) in an all-cash transaction (valued at approximately $500 million subject to the total count of outstanding SciPlay Class A shares at closing) (the “SciPlay Acquisition”). Following the execution of the Merger Agreement, the wholly owned subsidiary of L&W holding approximately 98% of the voting power of the outstanding shares of SciPlay common stock delivered to SciPlay a written consent approving the Merger Agreement and the SciPlay Acquisition. This transaction is expected to close during the fourth quarter of 2023, subject to customary closing conditions. As a result of the SciPlay Acquisition, SciPlay will cease to be publicly traded and will become a wholly owned subsidiary of L&W.

The Merger Agreement contains certain termination rights for SciPlay and L&W, including the right of either party to terminate the Merger Agreement if the SciPlay Acquisition is not consummated on or before February 8, 2024.

We completed the sales of our former Lottery Business and Sports Betting Business during the second and third quarters of 2022, respectively. We have reflected the prior period financial results of these Divested Businesses as discontinued operations in our consolidated statements of operations. Refer to Note 2 for further information. Unless otherwise noted, amounts and disclosures included herein relate to our continuing operations.

Basis of Presentation and Principles of Consolidation

The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of L&W, its wholly owned subsidiaries, and those subsidiaries in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation.

In the opinion of L&W and its management, we have made all adjustments necessary to present fairly our consolidated financial position, results of operations, comprehensive income and cash flows for the periods presented. Such adjustments are of a normal, recurring nature. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2022 10-K. Interim results of operations are not necessarily indicative of results of operations to be expected for a full year.

Significant Accounting Policies

There have been no changes to our significant accounting policies described within the Notes of our 2022 10-K.

Other (Expense) Income, net

Other (expense) income, net includes gains and losses from foreign currency transactions, interest income, earnings (losses) from equity investments and other items. Other (expense) income, net for the three and six months ended June 30, 2023 primarily consisted of foreign currency transaction losses which totaled $25 million and $38 million, respectively. For the six months ended June 30, 2022, foreign currency transaction gains were $2 million, and they were not material for the three months ended June 30, 2022.

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Computation of Basic and Diluted Net Income (Loss) Attributable to L&W Per Share

Basic and diluted net income (loss) attributable to L&W per share are based upon net income (loss) attributable to L&W divided by the weighted average number of common shares outstanding during the period. Diluted net income attributable to L&W per share reflects the effect of the assumed exercise of stock options and RSUs only in the periods in which such effect would have been dilutive to net income from continuing operations.

For the six months ended June 30, 2023, we included 2 million of common stock equivalents in the calculation of diluted net income attributable to L&W per share. Basic and diluted net loss attributable to L&W per share were the same for the three months ended June 30, 2023 and the three and six months ended June 30, 2022, as all common stock equivalents would have been anti-dilutive for those periods. We excluded 2 million of stock options and 2 million of RSUs outstanding from the calculation of diluted weighted-average common shares outstanding for the three months ended June 30, 2023 and the three and six months ended June 30, 2022.

New Accounting Guidance

There have been no recent accounting pronouncements or changes in accounting pronouncements since those described within the Notes of our 2022 10-K that are expected to have a material impact on our consolidated financial statements.

We completed the Divestitures in 2022 and reflected the prior period financial results of the Divested Businesses as discontinued operations in our consolidated statements of operations. For the sale of our former Lottery Business completed during the second quarter of 2022, we received $5.7 billion in gross cash proceeds and recorded a pre-tax gain of $4.6 billion. The summarized results of our discontinued operations were as follows:

									Three Months Ended June 30, 2022												Six Months Ended June 30, 2022
Total revenue									$	51											$	339
Total cost of revenue									18												168
Other operating expenses(1)									108												149
Operating (loss) income									(75)												22
Total other income, net									—												7
Net (loss) income from discontinued operations before income taxes									(75)												29
Gain on sale of discontinued operations before income taxes									4,568												4,568
Total net income from discontinued operations before income taxes									4,493												4,597
Income tax expense									(1,048)												(1,057)
Net income from discontinued operations, net of tax included in the consolidated statement of operations									$	3,445											$	3,540
(1) The three and six months ended June 30, 2022 include stock-based compensation of $4 million and $11 million, respectively, and $78 million related to direct transaction closing fees.

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The following table disaggregates revenues by type within each of our business segments:

			Three Months Ended June 30,												Six Months Ended June 30,
			2023						2022						2023						2022
Gaming
Gaming operations			$	167					$	163					$	327					$	319
Gaming machine sales			173						123						331						226
Gaming systems			72						60						127						111
Table products			59						44						105						89
Total			$	471					$	390					$	890					$	745
SciPlay
Mobile in-app purchases			$	170					$	138					$	335					$	277
Web in-app purchases and other(1)			20						22						41						41
Total			$	190					$	160					$	376					$	318
iGaming			$	70					$	60					$	134					$	120
(1) Other primarily represents advertising revenue, which was not material in the periods presented.

The amount of rental income revenue that is outside the scope of ASC 606 was $123 million and $240 million for the three and six months ended June 30, 2023, respectively, and $118 million and $231 million for the three and six months ended June 30, 2022, respectively.

Contract Liabilities and Other Disclosures

The following table summarizes the activity in our contract liabilities for the reporting period:

												Six Months Ended June 30, 2023
Contract liability balance, beginning of period(1)												$	36
Liabilities recognized during the period												17
Amounts recognized in revenue from beginning balance												(15)
Contract liability balance, end of period(1)												$	38
(1) Contract liabilities are included within Accrued liabilities and Other long-term liabilities in our consolidated balance sheets.

The timing of revenue recognition, billings and cash collections results in billed receivables, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on our consolidated balance sheets. Other than contracts with customers with financing arrangements exceeding 12 months, revenue recognition is generally proximal to conversion to cash. The following table summarizes our balances in these accounts for the periods indicated (other than contract liabilities disclosed above):

			Receivables						Contract Assets(1)
Beginning of period balance			$	469					$	24
End of period balance, June 30, 2023			511						23
(1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets.

As of June 30, 2023, we did not have material unsatisfied performance obligations for contracts expected to be long-term or contracts for which we recognize revenue at an amount other than for which we have the right to invoice for goods or services delivered or performed.

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In evaluating financial performance, our Chief Operating Decision Maker focuses on AEBITDA as management’s primary segment measure of profit or loss, which is described in footnote (2) to the below table. The accounting policies of our business segments are the same as those described within the Notes in our 2022 10-K. The following tables present our segment information:

			Three Months Ended June 30, 2023
			Gaming						SciPlay						iGaming						Unallocated and Reconciling Items(1)						Total
Total revenue			$	471					$	190					$	70					$	—					$	731
AEBITDA(2)			233						59						24						(35)						$	281
Reconciling items to net income from continuing operations before income taxes:
D&A			(79)						(11)						(12)						(6)						(108)
Restructuring and other			(3)						(2)						(9)						(17)						(31)
Interest expense																					(78)						(78)
Other expense, net																					(16)						(16)
Stock-based compensation																					(28)						(28)
Net income from continuing operations before income taxes																											$	20
(1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income from continuing operations before income taxes.
(2) AEBITDA is reconciled to net income (loss) from continuing operations before income taxes with the following adjustments: (1) depreciation and amortization expense and impairment charges (including goodwill impairments); (2) restructuring and other, which includes charges or expenses attributable to: (i) employee severance; (ii) management restructuring and related costs; (iii) restructuring and integration; (iv) cost savings initiatives; (v) major litigation; and (vi) acquisition- and disposition-related costs and other unusual items; (3) interest expense; (4) loss on debt financing transactions; (5) change in fair value of investments and remeasurement of debt and other; (6) other (expense) income, net, including foreign currency gains or losses and earnings from equity investments; and (7) stock-based compensation. AEBITDA is presented as our primary segment measure of profit or loss.

			Three Months Ended June 30, 2022
			Gaming												SciPlay						iGaming						Unallocated and Reconciling Items(1)						Total
Total revenue			$	390											$	160					$	60					$	—					$	610
AEBITDA(2)			179												41						21						(29)						$	212
Reconciling items to net loss from continuing operations before income taxes:
D&A			(82)												(6)						(13)						(6)						(107)
Restructuring and other			(1)												(1)						(14)						(26)						(42)
Interest expense																											(70)						(70)
Loss on debt financing transactions																											(147)						(147)
Gain on remeasurement of debt and other																											20						20
Other income, net																											2						2
Stock-based compensation																											(17)						(17)
Net loss from continuing operations before income taxes																																	$	(149)
(1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net loss from continuing operations before income taxes.
(2) AEBITDA is described in footnote (2) to the first table in this Note 4.

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			Six Months Ended June 30, 2023
			Gaming												SciPlay						iGaming						Unallocated and Reconciling Items(1)						Total
Total revenue			$	890											$	376					$	134					$	—					$	1,400
AEBITDA(2)			438												113						47						(69)						$	529
Reconciling items to net income from continuing operations before income taxes:
D&A			(156)												(17)						(24)						(11)						(208)
Restructuring and other			(11)												(3)						(10)						(26)						(50)
Interest expense																											(153)						(153)
Other expense, net																											(18)						(18)
Stock-based compensation																											(54)						(54)
Net income from continuing operations before income taxes																																	$	46
(1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income from continuing operations before income taxes.
(2) AEBITDA is described in footnote (2) to the first table in this Note 4.

			Six Months Ended June 30, 2022
			Gaming												SciPlay						iGaming						Unallocated and Reconciling Items(1)						Total
Total revenue			$	745											$	318					$	120					$	—					$	1,183
AEBITDA(2)			350												85						41						(62)						$	414
Reconciling items to net loss from continuing operations before income taxes:
D&A			(165)												(10)						(27)						(13)						(215)
Restructuring and other			(4)												(3)						(14)						(57)						(78)
Interest expense																											(186)						(186)
Loss on debt financing transactions																											(147)						(147)
Gain on remeasurement of debt and other																											27						27
Other income, net																											4						4
Stock-based compensation																											(32)						(32)
Net loss from continuing operations before income taxes																																	$	(213)
(1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net loss from continuing operations before income taxes.
(2) AEBITDA is described in footnote (2) to the first table in this Note 4.

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acquisition- and disposition-related costs and other unusual items. The following table summarizes pre-tax restructuring and other costs for the periods presented:

			Three Months Ended June 30,												Six Months Ended June 30,
			2023						2022						2023						2022
Employee severance and related			$	4					$	1					$	13					$	2
Strategic review and related(1)			14						22						18						52
Contingent acquisition consideration(2)			9						12						9						12
Restructuring, integration and other			4						7						10						12
Total			$	31					$	42					$	50					$	78
(1) Includes costs associated with the ASX listing, Divestitures (including ongoing separation activities), rebranding and related activities.
(2) Represents contingent consideration fair value adjustment (see Note 12).

Receivables

The following table summarizes the components of current and long-term receivables, net:

			As of
			June 30, 2023						December 31, 2022
Current:
Receivables			$	539					$	493
Allowance for credit losses			(40)						(38)
Current receivables, net			499						455
Long-term:
Receivables			14						16
Allowance for credit losses			(2)						(2)
Long-term receivables, net			12						14
Total receivables, net			$	511					$	469

Allowance for Credit Losses

We manage our receivable portfolios using both geography and delinquency as key credit quality indicators. The following summarizes geographical delinquencies of total receivables, net:

			As of
			June 30, 2023						Balances over 90 days past due						December 31, 2022						Balances over 90 days past due
Receivables:
U.S. and Canada			$	346					$	2					$	297					$	5
International			207						32						212						34
Total receivables			553						34						509						39
Receivables allowance:
U.S. and Canada			(18)						(3)						(18)						(5)
International			(24)						(16)						(22)						(22)
Total receivables allowance			(42)						(19)						(40)						(27)
Receivables, net			$	511					$	15					$	469					$	12

Account balances are charged against the allowances after all internal and external collection efforts have been exhausted and the potential for recovery is considered remote.

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The activity in our allowance for receivable credit losses for each of the three and six months ended June 30, 2023 and 2022 is as follows:

			2023																		2022
			Total						U.S. and Canada						International						Total
Beginning allowance for credit losses			$	(40)					$	(18)					$	(22)					$	(54)
Provision			(1)						(1)						—						(3)
Charge-offs and recoveries			1						—						1						7
Allowance for credit losses as of March 31			$	(40)					$	(19)					$	(21)					$	(50)
Provision			(4)						—						(4)						(1)
Charge-offs and recoveries			2						1						1						3
Allowance for credit losses as of June 30			$	(42)					$	(18)					$	(24)					$	(48)

As of June 30, 2023 and December 31, 2022, 3% of our total receivables, net, were past due by over 90 days.

Credit Quality of Receivables

We have certain concentrations of outstanding receivables in international locations that impact our assessment of the credit quality of our receivables. We monitor the macroeconomic and political environment in each of these locations in our assessment of the credit quality of our receivables. The international customers with significant concentrations (generally deemed to be exceeding 10%) of our receivables with terms longer than one year are primarily in the Latin America region (“LATAM”) and are primarily comprised of Mexico, Peru and Argentina. The following table summarizes our LATAM receivables:

			As of June 30, 2023
			Total												Current						Balances over 90 days past due
Receivables			$	64											$	41					$	23
Allowance for credit losses			(19)												(10)						(9)
Receivables, net			$	45											$	31					$	14

We continuously review receivables and, as information concerning credit quality arise, reassess our expectations of future losses and record an incremental reserve if warranted at that time. Our current allowance for credit losses represents our current expectation of credit losses; however, future expectations could change as international unrest or other macro-economic factors impact the financial stability of our customers.

The fair value of receivables is estimated by discounting expected future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings and remaining maturities. As of June 30, 2023 and December 31, 2022, the fair value of receivables, net, approximated the carrying value due to contractual terms of receivables generally being less than 24 months.

Inventories consisted of the following:

			As of
			June 30, 2023						December 31, 2022
Parts and work-in-process			$	133					$	124
Finished goods			50						37
Total inventories			$	183					$	161

    Parts and work-in-process include parts for gaming machines and our finished goods inventory primarily consists of gaming machines for sale.

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Property and equipment, net consisted of the following:

			As of
			June 30, 2023						December 31, 2022
Land			$	6					$	6
Buildings and leasehold improvements			59						56
Gaming machinery and equipment			708						685
Furniture and fixtures			26						25
Construction in progress			9						9
Other property and equipment			96						88
Less: accumulated depreciation			(690)						(665)
Total property and equipment, net			$	214					$	204

Depreciation expense is excluded from cost of services, cost of product sales and other operating expenses and is separately presented within Depreciation, amortization and impairments.

			Three Months Ended June 30,												Six Months Ended June 30,
			2023						2022						2023						2022
Depreciation expense			$	30					$	27					$	57					$	55

Intangible Assets, net

The following tables present certain information regarding our intangible assets as of June 30, 2023 and December 31, 2022:

			As of
			June 30, 2023																		December 31, 2022
			Gross Carrying Value						Accumulated Amortization												Net Balance						Gross Carrying Value						Accumulated Amortization						Net Balance
Amortizable intangible assets:
Customer relationships			$	902					$	(535)											$	367					$	902					$	(503)					$	399
Intellectual property			946						(743)												203						948						(714)						234
Licenses			373						(287)												86						371						(273)						98
Brand names			129						(114)												15						129						(108)						21
Trade names			163						(156)												7						162						(122)						40
Patents and other			11						(7)												4						12						(7)						5
Total intangible assets			$	2,524					$	(1,842)											$	682					$	2,524					$	(1,727)					$	797

The following reflects intangible amortization expense included within Depreciation, amortization and impairments.

			Three Months Ended June 30,												Six Months Ended June 30,
			2023						2022						2023						2022
Amortization expense(1)			$	61					$	60					$	119					$	120
(1) The three and six months ended June 30, 2023 include intangible assets non-cash impairment charge of $4 million related to SciPlay restructuring of a certain foreign studio.

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Goodwill

The table below reconciles the change in the carrying value of goodwill by business segment for the period from December 31, 2022 to June 30, 2023.

						Gaming(1)												SciPlay						iGaming												Totals
Balance as of December 31, 2022						$	2,373											$	213					$	333											$	2,919
Foreign currency adjustments						10												(2)						3												11
Balance as of June 30, 2023						$	2,383											$	211					$	336											$	2,930
(1) Accumulated goodwill impairment charges for the Gaming segment as of June 30, 2023 were $989 million.

Software, net consisted of the following:

			As of
			June 30, 2023						December 31, 2022
Software			$	1,105					$	1,064
Accumulated amortization			(952)						(919)
Software, net			$	153					$	145

The following reflects amortization of software included within D&A:

			Three Months Ended June 30,												Six Months Ended June 30,
			2023						2022						2023						2022
Amortization expense			$	17					$	20					$	32					$	40

The following table reflects our outstanding debt (in order of priority and maturity):

			As of
			June 30, 2023																														December 31, 2022
			Final Maturity						Rate(s)						Face value						Unamortized debt discount/premium and deferred financing costs, net						Book value						Book value
Senior Secured Credit Facilities:
SciPlay Revolver			2024						variable						$	—					$	—					$	—					$	—
LNWI Revolver			2027						variable						—						—						—						—
LNWI Term Loan B			2029						variable						2,178						(28)						2,150						2,159
LNWI Senior Notes:
2025 Unsecured Notes			2025						8.625%						550						(4)						546						545
2028 Unsecured Notes			2028						7.000%						700						(6)						694						693
2029 Unsecured Notes			2029						7.250%						500						(5)						495						495
Other			2023						—						1						—						1						2
Total long-term debt outstanding															$	3,929					$	(43)					$	3,886					$	3,894
Less: current portion of long-term debt																											(23)						(24)
Long-term debt, excluding current portion																											$	3,863					$	3,870
Fair value of debt(1)															$	3,936
(1) Fair value of our fixed rate and variable interest rate debt is classified within Level 2 in the fair value hierarchy and has been calculated based on the quoted market prices of our securities.

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We were in compliance with the financial covenants under all debt agreements as of June 30, 2023 (for information regarding our financial covenants of all debt agreements, see Note 15 in our 2022 10-K).

Loss on Debt Financing Transactions

The following are components of the loss on debt financing transactions resulting from debt extinguishment and modification accounting for the three and six months ended June 30, 2022. No such transactions occurred during the three and six months ended June 30, 2023.

			Three and Six Months Ended June 30, 2022
Repayment of principal balance at premium			$	90
Unamortized debt discount and deferred financing costs, net			57
Total loss on debt refinancing transactions			$	147

For additional information regarding the terms of our credit facilities and Senior Notes, see Note 15 in our 2022 10-K.

The fair value of our financial assets and liabilities is determined by reference to market data and other valuation techniques as appropriate. We believe the fair value of our financial instruments, which are principally cash and cash equivalents, restricted cash, receivables, other current assets, accounts payable and accrued liabilities, approximates their recorded values. Our assets and liabilities measured at fair value on a recurring basis are described below.

Derivative Financial Instruments

As of June 30, 2023, we held the following derivative instruments that were accounted for pursuant to ASC 815:

Interest Rate Swap Contracts

We use interest rate swap contracts as described below to mitigate gains or losses associated with the change in expected cash flows due to fluctuations in interest rates on our variable rate debt.

In April 2022, we entered into interest rate swap contracts to hedge a portion of our interest expense associated with our new variable rate debt to effectively fix the interest rate that we pay. These interest rate swap contracts were designated as cash flow hedges under ASC 815. We pay interest at a weighted-average fixed rate of 2.8320% and receive interest at a variable rate equal to one-month Chicago Mercantile Exchange Term SOFR. The total notional amount of interest rate swaps was $700 million as of June 30, 2023. These hedges mature in April 2027. We also previously had interest rate swap contracts that matured in February 2022.

All gains and losses from these hedges were recorded in other comprehensive income (loss) until the future underlying payment transactions occur. Any realized gains or losses resulting from the hedges were recognized (together with the hedged transaction) as interest expense. We estimated the fair value of our interest rate swap contracts by discounting the future cash flows of both the fixed rate and variable rate interest payments based on market yield curves. The inputs used to measure the fair value of our interest rate swap contracts were categorized as Level 2 in the fair value hierarchy as established by ASC 820.

The following table shows the gain and interest expense recognized on our interest rate swap contracts:

			Three Months Ended June 30,												Six Months Ended June 30,
			2023						2022						2023						2022
Gain recorded in accumulated other comprehensive loss, net of tax			$	10					$	2					$	3					$	5
Interest income (expense) recorded related to interest rate swap contracts			4						(3)						7						(6)

We do not expect to reclassify material amounts from accumulated other comprehensive loss to interest expense in the next twelve months.

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The following table shows the effect of interest rate swap contracts designated as cash flow hedges on interest expense in the consolidated statements of operations:

			Three Months Ended June 30,												Six Months Ended June 30,
			2023						2022						2023						2022
Total interest expense which reflects the effects of cash flow hedges			$	(78)					$	(70)					$	(153)					$	(186)
Hedged item			(5)						(4)						(10)						(7)
Derivative designated as hedging instrument			9						1						17						1

The following table shows the fair value of our hedges:

									As of
			Balance Sheet Line Item						June 30, 2023						December 31, 2022
Interest rate swaps			Other assets						$	34					$	30

Contingent Acquisition Consideration Liabilities

In connection with our acquisitions, we have recorded certain contingent consideration liabilities (including redeemable non-controlling interest), of which the values are primarily based on reaching certain earnings-based metrics. The related liabilities were recorded at fair value on their respective acquisition dates as a part of the consideration transferred and are remeasured each reporting period (other than for redeemable non-controlling interest, which is measured based on its redemption value). The inputs used to measure the fair value of our liabilities are categorized as Level 3 in the fair value hierarchy.

The table below reconciles the change in the contingent acquisition consideration liabilities (including deferred purchase price) for the period from December 31, 2022 to June 30, 2023.

			Total						Included in Accrued Liabilities						Included in Other Long-Term Liabilities
Balance as of December 31, 2022			$	79					$	34					$	45
Payments			(21)
Fair value adjustments(1)			9
Other adjustments(2)			(4)
Balance as of June 30, 2023			$	63					$	44					$	19
(1) Amount included in Restructuring and other (see Note 5).
(2) Primarily represents extinguishment of $3 million in redeemable non-controlling interest liability associated with SciPlay’s acquisition of Alictus Yazilim Anonim Şirketi in 2022, as specified financial targets for the first year were not met. The charge was recorded in other income, net in our consolidated statements of operations.

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Changes in Stockholders’ Equity (Deficit)

The following tables present certain information regarding our stockholders’ equity as of June 30, 2023 and 2022:

			Six Months Ended June 30, 2023
			Common Stock						Additional Paid in Capital						Retained Earnings						Treasury Stock						Accumulated Other Comprehensive Loss						Noncontrolling Interest						Total
January 1, 2023			$	1					$	1,370					$	517					$	(580)					$	(318)					$	171					$	1,161
Settlement of liability awards			—						25						—						—						—						—						25
Vesting of RSUs, net of tax withholdings and other			—						(14)						—						—						—						—						(14)
Purchase of treasury stock			—						—						—						(28)						—						—						(28)
Purchase of SciPlay’s Class A common stock			—						(8)						—						—						—						—						(8)
Stock-based compensation			—						15						—						—						—						—						15
Net income			—						—						22						—						—						5						27
Other comprehensive income			—						—						—						—						6						—						6
March 31, 2023			$	1					$	1,388					$	539					$	(608)					$	(312)					$	176					$	1,184
Vesting of RSUs, net of tax withholdings and other			—						1						—						—						—						—						1
Purchase of treasury stock			—						—						—						(5)						—						—						(5)
Purchase of SciPlay’s Class A common stock			—						(15)						—						—						—						—						(15)
Stock-based compensation			—						13						—						—						—						—						13
Net (loss) income			—						—						(1)						—						—						6						5
Other comprehensive income			—						—						—						—						47						—						47
June 30, 2023			$	1					$	1,387					$	538					$	(613)					$	(265)					$	182					$	1,230

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			Six Months Ended June 30, 2022
			Common Stock						Additional Paid in Capital						Retained Earnings (Accumulated Loss)						Treasury Stock						Accumulated Other Comprehensive Loss						Noncontrolling Interest						Total
January 1, 2022			$	1					$	1,337					$	(3,158)					$	(175)					$	(261)					$	150					$	(2,106)
Settlement of liability awards			—						43						—						—						—						—						43
Vesting of RSUs, net of tax withholdings and other			—						(31)						—						—						—						—						(31)
Purchase of treasury stock			—						—						—						(51)						—						—						(51)
Stock-based compensation			—						17						—						—						—						—						17
Net income			—						—						26						—						—						2						28
Other comprehensive loss			—						—						—						—						(37)						—						(37)
March 31, 2022			$	1					$	1,366					$	(3,132)					$	(226)					$	(298)					$	152					$	(2,137)
Vesting of RSUs, net of tax withholdings and other			—						—						—						—						—						—						—
Purchase of treasury stock			—						—						—						(152)						—						—						(152)
Purchase of SciPlay’s Class A common stock			—						(6)						—						—						—						(1)						(7)
Stock-based compensation			—						15						—						—						—						—						15
Net income			—						—						3,291						—						—						4						3,295
Other comprehensive loss(1)			—						—						—						—						(48)						—						(48)
June 30, 2022			$	1					$	1,375					$	159					$	(378)					$	(346)					$	155					$	966
(1) Includes reclassification of $23 million accumulated other comprehensive loss into income due to the sale of discontinued operations (see Note 2).

Stock-based Compensation

The following reflects total stock-based compensation expense recognized under all programs:

			Three Months Ended June 30,												Six Months Ended June 30,
			2023						2022						2023						2022
Related to L&W stock options			$	—					$	1					$	—					$	1
Related to L&W RSUs			21						15						40						27
Related to SciPlay RSUs			7						1						14						4
Total(1)			$	28					$	17					$	54					$	32
(1) Includes $15 million and $26 million classified as liability awards for the three and six months ended June 30, 2023, respectively, and $6 million and $10 million for the three and six months ended June 30, 2022, respectively.

Restricted Stock Units

A summary of the changes in RSUs outstanding under our equity-based compensation plans during the six months ended June 30, 2023 is presented below:

			Number of Restricted Stock Units						Weighted Average Grant Date Fair Value
Unvested RSUs as of December 31, 2022			1.7						$	46.66
Granted			1.1						$	57.15
Vested			(0.9)						$	45.05
Cancelled			(0.1)						$	46.83
Unvested RSUs as of June 30, 2023			1.8						$	53.56

The weighted-average grant date fair value of RSUs granted during the six months ended June 30, 2023 and 2022 was $57.15 and $58.30, respectively. The fair value of each RSU grant is based on the market value of our common stock at the time of grant. As of June 30, 2023, we had $69 million in total unrecognized stock-based compensation expense relating to

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unvested RSUs that will be amortized over a weighted-average period of approximately two years. The fair value at vesting date of RSUs vested during the six months ended June 30, 2023 and 2022 was $51 million and $62 million, respectively.

Series A Junior Participating Preferred Stock and Rights Agreement

The 2018 Amended and Restated Rights Agreement, as described in Note 17 of our 2022 10-K, expired on June 19, 2023. Immediately prior to its expiration, no shares of Series A Junior Participating Preferred Stock were outstanding and no preferred share purchase rights had been exercised. At the time of the expiration of the agreement, the preferred share purchase rights expired and are no longer outstanding.

Share Repurchase Programs

On March 1, 2022, our Board of Directors approved a share repurchase program under which we are authorized to repurchase, from time to time through February 25, 2025, up to an aggregate amount of $750 million of our outstanding common stock. During the six months ended June 30, 2023, we repurchased 0.6 million shares of common stock under the program at an aggregate cost of $33 million.

On May 9, 2022, SciPlay’s Board of Directors approved a share repurchase program under which it is authorized to repurchase, from time to time through May 9, 2024, up to an aggregate amount of $60 million of its outstanding Class A common stock. On May 3, 2023, SciPlay’s Board of Directors approved another share repurchase program under which it is authorized to repurchase, from time to time through May 3, 2024, up to an aggregate amount of $60 million of its outstanding Class A common stock. During the six months ended June 30, 2023, SciPlay repurchased 1.4 million shares of Class A common stock under the programs at an aggregate cost of $23 million.

We consider new evidence (both positive and negative) at each reporting date that could affect our view of the future realization of deferred tax assets. We evaluate information such as historical financial results, historical taxable income, projected future taxable income, expected timing of the reversals of existing temporary differences and available prudent and feasible tax planning strategies in our analysis. Based on the available evidence, valuation allowances in certain U.S. and non-U.S. jurisdictions remain consistent as of June 30, 2023.

Our income tax expense (including discrete items) was $15 million and $14 million for the three and six months ended June 30, 2023, respectively, and $1 million and $4 million for the three and six months ended June 30, 2022, respectively. In 2023, our effective tax rate differs from the U.S. statutory rate of 21% primarily as a result of certain non-deductible items including foreign exchange losses, partially mitigated by tax benefits from internal restructuring transactions in the first quarter of 2023. In all periods, we recorded tax expense relative to pre-tax earnings in jurisdictions without valuation allowances, including our 17% noncontrolling interest in SciPlay.

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Supplemental balance sheet and cash flow information related to operating leases is as follows:

			As of
			June 30, 2023						December 31, 2022
Operating lease right-of-use assets			$	43					$	49
Accrued liabilities			18						17
Operating lease liabilities			31						37
Total operating lease liabilities			$	49					$	54
Weighted average remaining lease term, units in years			4						4
Weighted average discount rate			5		%				5		%
			Six Months Ended June 30,
			2023						2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases			$	10					$	11
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases			$	—					$	12

Lease liability maturities:

			Remainder of 2023						2024						2025						2026						2027						Thereafter						Less Imputed Interest						Total
Operating leases			$	9					$	17					$	13					$	9					$	3					$	3					$	(5)					$	49

As of June 30, 2023, we did not have material additional operating leases that have not yet commenced.

We are involved in various legal proceedings, which are described below.

We record an accrual for legal contingencies when it is both probable that a liability has been incurred and the amount or range of the loss can be reasonably estimated (although, as discussed below, there may be an exposure to loss in excess of the accrued liability). We evaluate our accruals for legal contingencies at least quarterly and, as appropriate, establish new accruals or adjust existing accruals to reflect (1) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings and other relevant events and developments, (2) the advice and analyses of counsel and (3) the assumptions and judgment of management. Legal costs associated with our legal proceedings are expensed as incurred. We had accrued liabilities of $11 million for all of our legal matters that were contingencies as of June 30, 2023 and December 31, 2022.

Substantially all of our legal contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss involves a series of complex judgments about future events. Consequently, the ultimate outcomes of our legal contingencies could result in losses in excess of amounts we have accrued. We may be unable to estimate a range of possible losses for some matters pending against us or our subsidiaries, even when the amount of damages claimed against us or our subsidiaries is stated because, among other things: (1) the claimed amount may be exaggerated or unsupported; (2) the claim may be based on a novel legal theory or involve a large number of parties; (3) there may be uncertainty as to the likelihood of a class being certified or the ultimate size of the class; (4) there may be uncertainty as to the outcome of pending appeals or motions; (5) the matter may not have progressed sufficiently through discovery or there may be significant factual or legal issues to be resolved or developed; and/or (6) there may be uncertainty as to the enforceability of legal judgments and outcomes in certain jurisdictions. Other matters have progressed sufficiently that we are able to estimate a range of possible loss. For those legal contingencies disclosed herein as well as those related to the previously disclosed settlement agreement entered into in February 2015 with SNAI S.p.a., as to which a loss is reasonably possible, whether in excess of a related accrued liability or where there is no accrued liability, and for which we are able to estimate a range of possible loss, the current estimated range is up to approximately $13 million in excess of the accrued liabilities (if any) related to those legal contingencies. This aggregate range represents management’s estimate of additional possible loss in excess of the accrued liabilities (if any) with respect to these matters based on currently available information, including any damages claimed by the plaintiffs, and is subject to significant judgment and a variety of assumptions and inherent uncertainties. For example, at the time of making an estimate, management may have only preliminary, incomplete, or

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inaccurate information about the facts underlying a claim; its assumptions about the future rulings of the court or other tribunal on significant issues, or the behavior and incentives of adverse parties, regulators, indemnitors or co‑defendants, may prove to be wrong; and the outcomes it is attempting to predict are often not amenable to the use of statistical or other quantitative analytical tools. In addition, from time to time an outcome may occur that management had not accounted for in its estimate because it had considered that outcome to be remote. Furthermore, as noted above, the aggregate range does not include any matters for which we are not able to estimate a range of possible loss. Accordingly, the estimated aggregate range of possible loss does not represent our maximum loss exposure. Any such losses could have a material adverse impact on our results of operations, cash flows or financial condition. The legal proceedings underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate.

Colombia Litigation

Our subsidiary, LNWI, owned a minority interest in Wintech de Colombia S.A., or Wintech (now liquidated), which formerly operated the Colombian national lottery under a contract with Empresa Colombiana de Recursos para la Salud, S.A. (together with its successors, “Ecosalud”), an agency of the Colombian government. The contract provided for a penalty against Wintech, LNWI and the other shareholders of Wintech of up to $5.0 million if certain levels of lottery sales were not achieved. In addition, LNWI delivered to Ecosalud a $4.0 million surety bond as a further guarantee of performance under the contract. Wintech started the instant lottery in Colombia but, due to difficulties beyond its control, including, among other factors, social and political unrest in Colombia, frequently interrupted telephone service and power outages, and competition from another lottery being operated in a province of Colombia that we believe was in violation of Wintech’s exclusive license from Ecosalud, the projected sales level was not met for the year ended June 30, 1993.

In 1993, Ecosalud issued a resolution declaring that the contract was in default. In 1994, Ecosalud issued a liquidation resolution asserting claims for compensation and damages against Wintech, LNWI and other shareholders of Wintech for, among other things, realization of the full amount of the penalty, plus interest, and the amount of the bond. LNWI filed separate actions opposing each resolution with the Tribunal Contencioso of Cundinamarca in Colombia (the “Tribunal”), which upheld both resolutions. LNWI appealed each decision to the Council of State. In May 2012, the Council of State upheld the contract default resolution, which decision was notified to us in August 2012. In October 2013, the Council of State upheld the liquidation resolution, which decision was notified to us in December 2013.

In July 1996, Ecosalud filed a lawsuit against LNWI in the U.S. District Court for the Northern District of Georgia asserting many of the same claims asserted in the Colombia proceedings, including breach of contract, and seeking damages. In March 1997, the District Court dismissed Ecosalud’s claims. Ecosalud appealed the decision to the U.S. Court of Appeals for the Eleventh Circuit. The Court of Appeals affirmed the District Court’s decision in 1998.

In June 1999, Ecosalud filed a collection proceeding against LNWI to enforce the liquidation resolution and recover the claimed damages. In May 2013, the Tribunal denied LNWI’s merit defenses to the collection proceeding and issued an order of payment of approximately 90 billion Colombian pesos, or approximately $30 million, plus default interest (potentially accrued since 1994 at a 12% statutory interest rate). LNWI filed an appeal to the Council of State, and on December 10, 2020, the Council of State issued a ruling affirming the Tribunal’s decision. On December 16, 2020, LNWI filed a motion for clarification of the Council of State’s ruling, which was denied on April 15, 2021. On April 22, 2021, LNWI filed a motion for reconsideration relating to that decision, which the Council of State denied on February 21, 2022. On May 24, 2022, the case was transferred from the Council of State to the Tribunal for further proceedings. On August 18, 2022, LNWI filed a constitutional challenge to the Council of State’s December 10, 2020 decision with that court, which was denied on October 7, 2022. On December 7, 2022, LNWI filed an appeal with the Council of State from the denial of the constitutional challenge, which was denied on May 24, 2023. On June 28, 2023, the Columbian Constitutional Court received the record of the constitutional appeal for further consideration.

LNWI believes it has various defenses, including on the merits, against Ecosalud’s claims. Although we believe these claims will not result in a material adverse effect on our consolidated results of operations, cash flows or financial position, it is not feasible to predict the final outcome, and we cannot assure that these claims will not ultimately be resolved adversely to us or result in material liability.

TCS John Huxley Matter

On March 15, 2019, TCS John Huxley America, Inc., TCS John Huxley Europe Ltd., TCS John Huxley Asia Ltd., and Taiwan Fulgent Enterprise Co., Ltd. brought a civil action in the United States District Court for the Northern District of Illinois against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. and South African patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold to regulated casinos in the United States. On April 10, 2019, the defendants filed a motion to dismiss the plaintiffs’

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complaint with prejudice. On April 25, 2019, the district court denied the defendants’ motion to dismiss without prejudice pursuant to the court’s local rules, after the plaintiffs advised that they intended to file an amended complaint. The plaintiffs filed their amended complaint on May 3, 2019, and on May 22, 2019, the defendants filed a motion to dismiss the plaintiffs’ amended complaint with prejudice. On March 20, 2020, the district court denied the defendants’ motion to dismiss the plaintiffs’ amended complaint, and defendants filed an answer to the plaintiffs’ amended complaint on June 19, 2020. On June 3, 2020, the trial court granted the defendants’ request to bifurcate proceedings in the case, with discovery to occur first into the statute of limitations and release defenses asserted by the defendants in their motion to dismiss, before proceeding into broader discovery. The trial court set a September 18, 2020, deadline for the parties to complete discovery relating to the statute of limitations and release defenses. On October 28, 2020, the court issued an order extending until January 15, 2021 the deadline for the parties to complete discovery relating to the statute of limitations defense. On February 9, 2021, the defendants filed a motion for summary judgment on their statute of limitations defense, addressing whether plaintiffs had actual knowledge of their claims prior to the start of the limitations period. The district court denied that motion for summary judgment on September 20, 2021. On January 13, 2023, the district court entered an order requiring, among other things, that the plaintiffs make a formal written settlement demand by January 20, 2023, that the defendants respond to that demand in writing by January 27, 2023, and that the parties file a status report by January 31, 2023 confirming that they have complied with the district court’s order. On January 31, 2023, the parties filed a joint status report confirming that they have complied with the district court’s order to make and respond to a formal written demand. Discovery closed on June 1, 2023. On June 30, 2023, the defendants filed a motion for summary judgment, which is pending. We are unable at this time to estimate a range of reasonably possible losses above the amount we have accrued for this matter due to the complexity of the plaintiffs’ claims, and the unpredictability of the outcome of the proceedings in the district court, and on any appeal therefrom.

Tonkawa Tribe Matter

On September 3, 2020, the Tonkawa Tribe of Indians of Oklahoma d/b/a Tonkawa Enterprises filed a putative class action complaint in the United States District Court for the District of Nevada against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. On October 5, 2020, the plaintiff filed a first amended complaint to add Cow Creek Band of Umpqua Tribe of Indians and the Umpqua Indian Development Corp., d/b/a Seven Feathers Casino as a plaintiff. On October 26, 2020, the plaintiffs filed a second amended complaint. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for card shufflers sold or leased to regulated casinos in the United States. The plaintiffs seek to represent a putative class of all regulated United States casinos directly leasing or purchasing card shufflers from the defendants on or after April 1, 2009. The complaint seeks unspecified money damages, the award of plaintiff’s costs of suit, including reasonable attorneys’ fees and expert fees, and the award of pre-judgment and post-judgment interest. On November 19, 2020, the defendants filed a motion to dismiss plaintiffs’ second amended complaint or, in the alternative, to compel arbitration of plaintiffs’ claims. On November 20, 2020, Plaintiffs filed a motion for partial summary judgment, seeking a finding that defendants are collaterally estopped from re-litigating issues litigated in the 2018 litigation versus Shuffle Tech International Corp., Aces Up Gaming, and Poydras-Talrick Holdings. On August 27, 2021, the Nevada district court entered an order transferring the lawsuit to the United States District Court for the Northern District of Illinois. On May 19, 2022, the Illinois district court granted defendants’ motion to compel arbitration of plaintiffs’ individual claims; stayed all proceedings in the lawsuit pending resolution of the arbitral process; and accordingly dismissed all pending motions without prejudice as moot. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them.

Giuliano and Rancho’s Club Casino Matter

On September 4, 2020, Alfred T. Giuliano, as liquidation trustee for RIH Acquisition NJ, LLC d/b/a The Atlantic Club Casino Hotel filed a putative class action complaint in the United States District Court for the Northern District of Illinois against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The plaintiffs seek to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the Defendants, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the court to treble, the award of plaintiff’s costs of suit, including attorneys’ fees, and the award of pre-judgment and post-judgment interest. On September 8, 2020, Rancho’s Club Casino, Inc., d/b/a Magnolia House Casino filed a putative class action complaint in the United States District Court for the Northern District of Illinois against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. In the complaint, the plaintiff asserts federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiff alleges that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The plaintiff seeks to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United

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States from the defendants, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the court to treble, the award of plaintiff’s costs of suit, including attorneys’ fees, and the award of pre-judgment and post-judgment interest.

On October 29, 2020, the trial court consolidated the Giuliano and Rancho’s Club Casino matters. On October 30, 2020, the plaintiffs in the consolidated action filed a first amended consolidated complaint. On November 9, 2020, the defendants filed a motion to dismiss the plaintiffs’ first amended consolidated complaint, and also filed a motion to compel arbitration of plaintiff Alfred T. Giuliano’s individual claims. On May 19, 2022, the Illinois district court granted defendants’ motion to compel arbitration; stayed all proceedings in the lawsuit pending resolution of the arbitral process; and accordingly dismissed all pending motions without prejudice. On May 31, 2022, defendants filed a motion to lift the stay of the lawsuit for the limited purpose of amending the court’s May 19, 2022 order to confirm that plaintiff Alfred T. Giuliano must proceed to arbitration on an individual basis rather than a class-wide basis. On June 10, 2022, plaintiff Alfred T. Giuliano filed a notice of voluntary dismissal without prejudice, and the court therefore denied as moot defendants’ motion to lift the stay in an order entered on March 28, 2023. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the consolidated lawsuit are without merit, and intend to vigorously defend against them.

In re Automatic Card Shufflers Litigation Matter

On April 2, 2021, Casino Queen, Inc. and Casino Queen Marquette, Inc. filed a putative class action complaint in the United States District Court for the Northern District of Illinois against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The plaintiffs seek to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the defendants, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the court to treble, the award of plaintiffs’ costs of suit, including attorneys’ fees, and the award of pre-judgment and post-judgment interest. On June 11, 2021, the defendants filed a motion to dismiss plaintiffs’ complaint, which the court denied on May 19, 2022. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them.

Mohawk Gaming Enterprises Matter

On November 9, 2020, Mohawk Gaming Enterprises LLC, d/b/a Akwesasne Mohawk Casino Resort, filed a demand for a putative class arbitration before the American Arbitration Association against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. (“Respondents”). In the complaint, the claimant asserts federal antitrust claims arising from the respondents’ procurement of particular U.S. patents. The claimant alleges that the respondents used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The claimant seeks to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the respondents, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the arbitration panel to treble, and the award of claimant’s costs of suit, including attorneys’ fees. Respondents filed their answering statement on December 9, 2020. On October 29, 2021, the claimant filed a memorandum in support of class arbitration, which Respondents opposed on December 3, 2021. On February 8, 2022, the Arbitrator issued a clause construction award, finding that the arbitration could proceed on behalf of a class or classes. On February 11, 2022, Respondents filed a petition to vacate the award in the New York Supreme Court. The Court denied Respondents’ petition on August 9, 2022, and on August 16, 2022, Respondents appealed to the New York Appellate Division, First Department, which denied Respondents’ appeal on June 22, 2023. On April 15, 2022, Respondents filed a motion to dismiss the claimant’s complaint, which the Arbitrator denied on July 26, 2022. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.

Boorn Matter

On September 15, 2022, plaintiff Hannelore Boorn filed a putative class action against L&W, SciPlay Corporation, and Appchi Media Ltd. in the Fayette Circuit Court of the Commonwealth of Kentucky. In her complaint, plaintiff seeks to represent a putative class of all persons in Kentucky who, within the past five years, purchased and allegedly lost $5.00 or more worth of chips, in a 24-hour period, playing SciPlay’s online social casino games. The complaint asserts claims for alleged violations of Kentucky’s “recovery of gambling losses” statute and for unjust enrichment, and seeks unspecified money damages, the award of reasonable attorneys’ fees and costs, pre- and post-judgment interest, and injunctive and/or other declaratory relief. On October 18, 2022, defendants removed the action to the United States District Court for the Eastern

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District of Kentucky. On October 26, 2022, the plaintiff filed a notice voluntarily dismissing the lawsuit without prejudice. On October 27, 2022, the district court entered an order dismissing the lawsuit. On November 17, 2022, the plaintiff filed an arbitration demand against defendants before the American Arbitration Association, pursuant to which she seeks declaratory judgments that (1) SciPlay’s online social casino games constitute gambling under Kentucky law, and (2) SciPlay’s terms of service are void under Kentucky law. On January 12, 2023, the respondents filed their answering statement to plaintiff’s arbitration demand. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.

Allah Beautiful Matter

On December 19, 2022, claimant Prince Imanifest Allah Beautiful filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The complaint asserts claims for alleged violations of New Jersey’s anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by New Jersey players of SciPlay’s online social casino games other than the claimant. On March 7, 2023, the respondent filed its answering statement to claimant’s arbitration demand. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.

Sprinkle Matter

On December 12, 2022, claimant Matthew Sprinkle filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The complaint asserts claims for alleged violations of Ohio’s anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Ohio players of SciPlay’s online social casino games other than the claimant. On March 7, 2023, the respondent filed its answering statement to claimant’s arbitration demand. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them.

Sornberger Matter

On March 8, 2023, plaintiff Andrea Sornberger filed a complaint against SciPlay Corporation and SciPlay Games, LLC in the Circuit Court of the Franklin County, Alabama. The complaint asserts claims for alleged violations of Alabama anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Alabama players of SciPlay’s online social casino games other than the plaintiff, the award of interests and costs, and injunctive and other relief. On April 12, 2023, defendants removed the action to the United States District Court for the Northern District of Alabama. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them.

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v3.23.2

COVER - shares	6 Months Ended
	Jun. 30, 2023	Aug. 04, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-11693
Entity Registrant Name	LIGHT & WONDER, INC.
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	81-0422894
Entity Address, Address Line One	6601 Bermuda Road
Entity Address, City or Town	Las Vegas
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89119
City Area Code	702
Local Phone Number	897-7150
Title of 12(b) Security	Common Stock, $.001 par value
Trading Symbol	LNW
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		91,356,867
Entity Central Index Key	0000750004
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

v3.23.2

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions		3 Months Ended			6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022		Jun. 30, 2023	Jun. 30, 2022
Revenue:
Total revenue		$ 731	$ 610		$ 1,400	$ 1,183
Operating expenses:
Selling, general and administrative		203	179		396	354
Research and development		58	56		112	109
Depreciation, amortization and impairments		108	107		208	215
Restructuring and other		31	42		50	78
Operating income		113	46		215	86
Other (expense) income:
Interest expense		(78)	(70)		(153)	(186)
Loss on debt financing transactions		0	(147)		0	(147)
Gain on remeasurement of debt and other		0	20		0	27
Other (expense) income, net		(15)	2		(16)	7
Total other expense, net		(93)	(195)		(169)	(299)
Net income (loss) from continuing operations before income taxes		20	(149)		46	(213)
Income tax expense		(15)	(1)		(14)	(4)
Net income (loss) from continuing operations		5	(150)		32	(217)
Net income from discontinued operations, net of tax(2)		0	3,445	[1]	0	3,540	[1]
Net income		5	3,295		32	3,323
Less: Net income attributable to noncontrolling interest		6	4		11	6
Net (loss) income attributable to L&W		$ (1)	$ 3,291		$ 21	$ 3,317
Per Share - Basic:
Net income (loss) from continuing operations (in dollars per share)		$ (0.01)	$ (1.62)		$ 0.23	$ (2.33)
Net income from discontinued operations (in dollars per share)		0	36.23		0	36.94
Net income attributable to L&W (in dollars per share)		(0.01)	34.61		0.23	34.61
Per Share - Diluted:
Net income (loss) from continuing operations (in dollars per share)		(0.01)	(1.62)		0.22	(2.33)
Net income from discontinued operations (in dollars per share)		0	36.23		0	36.94
Net income attributable to L&W (in dollars per share)		$ (0.01)	$ 34.61		$ 0.22	$ 34.61
Weighted average number of shares used in per share calculations:
Basic (in shares)		91	95		91	96
Diluted (in shares)		91	95		93	96
Services
Revenue:
Total revenue		$ 496	$ 445		$ 973	$ 876
Operating expenses:
Cost of goods and services sold	[2]	110	92		218	182
Product sales
Revenue:
Total revenue		235	165		427	307
Operating expenses:
Cost of goods and services sold	[2]	$ 108	$ 88		$ 201	$ 159
[1] (2) The three and six months ended June 30, 2022 include a pre-tax gain of $4,568 million on the sale of discontinued operations (see Note 2). [2] (1) Excludes depreciation, amortization, and impairments.

v3.23.2

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Discontinued Operations
Gain on sale of discontinued operations before income taxes	$ 4,568,000	$ 4,568,000

v3.23.2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 5	$ 3,295	$ 32	$ 3,323
Foreign currency translation gain (loss), net of tax	37	(46)	50	(78)
Derivative financial instruments unrealized gain, net of tax	10	2	3	5
Other comprehensive income (loss) from continuing operations	47	(44)	53	(73)
Other comprehensive loss from discontinued operations	0	(4)	0	(12)
Total comprehensive income	52	3,247	85	3,238
Less: comprehensive income attributable to noncontrolling interest	6	4	11	6
Comprehensive income attributable to L&W	$ 46	$ 3,243	$ 74	$ 3,232

v3.23.2

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 909	$ 914
Restricted cash	48	47
Receivables, net of allowance for credit losses of $40 and $38, respectively	499	455
Inventories	183	161
Prepaid expenses, deposits and other current assets	96	117
Total current assets	1,735	1,694
Non-current assets:
Restricted cash	7	6
Receivables, net of allowance for credit losses of $2	12	14
Property and equipment, net	214	204
Operating lease right-of-use assets	43	49
Goodwill	2,930	2,919
Intangible assets, net	682	797
Software, net	153	145
Deferred income taxes	112	114
Other assets	74	67
Total assets	5,962	6,009
Current liabilities:
Current portion of long-term debt	23	24
Accounts payable	171	154
Accrued liabilities	371	380
Income taxes payable	12	64
Total current liabilities	577	622
Deferred income taxes	51	87
Operating lease liabilities	31	37
Other long-term liabilities	210	232
Long-term debt, excluding current portion	3,863	3,870
Total liabilities	4,732	4,848
Commitments and contingencies (Note 16)
Stockholders’ equity:
Common stock, par value $0.001 per share, 199 shares authorized; 116 and 115 shares issued, respectively, and 91 shares outstanding	1	1
Additional paid-in capital	1,387	1,370
Retained earnings	538	517
Treasury stock, at cost, 25 and 24 shares, respectively	(613)	(580)
Accumulated other comprehensive loss	(265)	(318)
Total L&W stockholders’ equity	1,048	990
Noncontrolling interest	182	171
Total stockholders’ equity	1,230	1,161
Total liabilities and stockholders’ equity	$ 5,962	$ 6,009

v3.23.2

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accounts Receivable, Allowance for Credit Loss, Current	$ 40	$ 38
Accounts Receivable, Allowance for Credit Loss, Noncurrent	$ 2	$ 2
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	199,000,000	199,000,000
Common stock, shares issued (in shares)	116,000,000	115,000,000
Common stock, shares outstanding (in shares)	91,000,000	91,000,000
Treasury stock, at cost, shares held (in shares)	25,000,000	24,000,000

v3.23.2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income	$ 32	$ 3,323
Less: Income from discontinued operations, net of tax	0	(3,540)
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities from continuing operations	320	369
Changes in working capital accounts, excluding the effects of acquisitions	(97)	(145)
Changes in deferred income taxes and other	(36)	6
Net cash provided by operating activities from continuing operations	219	13
Net cash provided by operating activities from discontinued operations	0	44
Net cash provided by operating activities	219	57
Cash flows from investing activities:
Capital expenditures	(112)	(100)
Acquisitions of businesses, net of cash acquired	(2)	(116)
Proceeds from settlement of cross-currency interest rate swaps	0	50
Other	(1)	(4)
Net cash used in investing activities from continuing operations	(115)	(170)
Net cash (used in) provided by investing activities from discontinued operations(1)	(3)	5,629	[1]
Net cash (used in) provided by investing activities	(118)	5,459
Cash flows from financing activities:
Borrowings under revolving credit facilities	0	230
Repayments under revolving credit facilities	0	(230)
Proceeds from issuance of senior notes and term loans	0	2,200
Repayment of notes and term loans (including redemption premium)	0	(6,984)
Payments on long-term debt	(11)	(98)
Payments of debt issuance and deferred financing costs	0	(37)
Payments on license obligations	(18)	(24)
Purchase of L&W common stock	(33)	(203)
Purchase of SciPlay’s Class A common stock	23	7
Net redemptions of common stock under stock-based compensation plans and other	(20)	(33)
Net cash used in financing activities from continuing operations	(105)	(5,186)
Net cash used in financing activities from discontinued operations	0	(3)
Net cash used in financing activities	(105)	(5,189)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	1	(6)
(Decrease) increase in cash, cash equivalents and restricted cash	(3)	321
Cash, cash equivalents and restricted cash, beginning of period	967	701
Cash, cash equivalents and restricted cash, end of period	964	1,022
Less: Cash, cash equivalents and restricted cash of discontinued operations	0	43
Cash, cash equivalents and restricted cash of continuing operations, end of period	964	979
Supplemental cash flow information:
Cash paid for interest	147	219
Income taxes paid	96	23
Distributed earnings from equity investments	1	4
Cash paid for contingent consideration included in operating activities	9	0
Supplemental non-cash transactions:
Non-cash interest expense	$ 5	$ 9
[1] (1) The six months ended June 30, 2022 include $5,659 million in gross cash proceeds from the sale of discontinued operations, net of cash, cash equivalents and restricted cash transferred.

v3.23.2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Discontinued Operations
Proceeds from divestiture of businesses, net of cash divested	$ 5,700,000	$ 5,659,000

v3.23.2

Description of the Business and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of the Business and Summary of Significant Accounting Policies	Description of the Business We are a leading cross-platform global games company with a focus on content and digital markets. Our portfolio of revenue-generating activities primarily includes supplying game content and gaming machines, CMSs and table game products and services to licensed gaming entities; providing social casino and other mobile games, including casual gaming, to retail customers; and providing a comprehensive suite of digital gaming content, distribution platforms, player account management systems, as well as various other iGaming content and services. We report our results of operations in three business segments—Gaming, SciPlay and iGaming—representing our different products and services. Our common stock is listed on The Nasdaq Stock Market under the ticker symbol “LNW.” Our common stock is also listed as CDIs on the ASX and commenced active trading on May 22, 2023 (AEST) under the ticker symbol “LNW.” On August 8, 2023, we entered into a definitive agreement to acquire the remaining equity interest in SciPlay not already owned by us (approximately 17%) pursuant to a merger in which SciPlay’s shareholders will receive $22.95 for each share of SciPlay Class A common stock they own (subject to certain exceptions set forth in the Merger Agreement, dated as of August 8, 2023, by and among L&W, Bern Merger Sub, Inc. and SciPlay (the “Merger Agreement”)) in an all-cash transaction (valued at approximately $500 million subject to the total count of outstanding SciPlay Class A shares at closing) (the “SciPlay Acquisition”). Following the execution of the Merger Agreement, the wholly owned subsidiary of L&W holding approximately 98% of the voting power of the outstanding shares of SciPlay common stock delivered to SciPlay a written consent approving the Merger Agreement and the SciPlay Acquisition. This transaction is expected to close during the fourth quarter of 2023, subject to customary closing conditions. As a result of the SciPlay Acquisition, SciPlay will cease to be publicly traded and will become a wholly owned subsidiary of L&W. The Merger Agreement contains certain termination rights for SciPlay and L&W, including the right of either party to terminate the Merger Agreement if the SciPlay Acquisition is not consummated on or before February 8, 2024. We completed the sales of our former Lottery Business and Sports Betting Business during the second and third quarters of 2022, respectively. We have reflected the prior period financial results of these Divested Businesses as discontinued operations in our consolidated statements of operations. Refer to Note 2 for further information. Unless otherwise noted, amounts and disclosures included herein relate to our continuing operations. Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of L&W, its wholly owned subsidiaries, and those subsidiaries in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of L&W and its management, we have made all adjustments necessary to present fairly our consolidated financial position, results of operations, comprehensive income and cash flows for the periods presented. Such adjustments are of a normal, recurring nature. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2022 10-K. Interim results of operations are not necessarily indicative of results of operations to be expected for a full year. Significant Accounting Policies There have been no changes to our significant accounting policies described within the Notes of our 2022 10-K. Other (Expense) Income, net Other (expense) income, net includes gains and losses from foreign currency transactions, interest income, earnings (losses) from equity investments and other items. Other (expense) income, net for the three and six months ended June 30, 2023 primarily consisted of foreign currency transaction losses which totaled $25 million and $38 million, respectively. For the six months ended June 30, 2022, foreign currency transaction gains were $2 million, and they were not material for the three months ended June 30, 2022. Computation of Basic and Diluted Net Income (Loss) Attributable to L&W Per Share Basic and diluted net income (loss) attributable to L&W per share are based upon net income (loss) attributable to L&W divided by the weighted average number of common shares outstanding during the period. Diluted net income attributable to L&W per share reflects the effect of the assumed exercise of stock options and RSUs only in the periods in which such effect would have been dilutive to net income from continuing operations. For the six months ended June 30, 2023, we included 2 million of common stock equivalents in the calculation of diluted net income attributable to L&W per share. Basic and diluted net loss attributable to L&W per share were the same for the three months ended June 30, 2023 and the three and six months ended June 30, 2022, as all common stock equivalents would have been anti-dilutive for those periods. We excluded 2 million of stock options and 2 million of RSUs outstanding from the calculation of diluted weighted-average common shares outstanding for the three months ended June 30, 2023 and the three and six months ended June 30, 2022. New Accounting Guidance There have been no recent accounting pronouncements or changes in accounting pronouncements since those described within the Notes of our 2022 10-K that are expected to have a material impact on our consolidated financial statements.

v3.23.2

Discontinued Operations	6 Months Ended
	Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	We completed the Divestitures in 2022 and reflected the prior period financial results of the Divested Businesses as discontinued operations in our consolidated statements of operations. For the sale of our former Lottery Business completed during the second quarter of 2022, we received $5.7 billion in gross cash proceeds and recorded a pre-tax gain of $4.6 billion. The summarized results of our discontinued operations were as follows: Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Total revenue $ 51  $ 339  Total cost of revenue 18  168  Other operating expenses(1) 108  149  Operating (loss) income (75) 22  Total other income, net —  7  Net (loss) income from discontinued operations before income taxes (75) 29  Gain on sale of discontinued operations before income taxes 4,568  4,568  Total net income from discontinued operations before income taxes 4,493  4,597  Income tax expense (1,048) (1,057) Net income from discontinued operations, net of tax included in the consolidated statement of operations $ 3,445  $ 3,540  (1) The three and six months ended June 30, 2022 include stock-based compensation of $4 million and $11 million, respectively, and $78 million related to direct transaction closing fees.

v3.23.2

Revenue Recognition	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue Recognition	The following table disaggregates revenues by type within each of our business segments: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Gaming Gaming operations $ 167  $ 163  $ 327  $ 319  Gaming machine sales 173  123  331  226  Gaming systems 72  60  127  111  Table products 59  44  105  89  Total $ 471  $ 390  $ 890  $ 745  SciPlay Mobile in-app purchases $ 170  $ 138  $ 335  $ 277  Web in-app purchases and other(1) 20  22  41  41  Total $ 190  $ 160  $ 376  $ 318  iGaming $ 70  $ 60  $ 134  $ 120  (1) Other primarily represents advertising revenue, which was not material in the periods presented. The amount of rental income revenue that is outside the scope of ASC 606 was $123 million and $240 million for the three and six months ended June 30, 2023, respectively, and $118 million and $231 million for the three and six months ended June 30, 2022, respectively. Contract Liabilities and Other Disclosures The following table summarizes the activity in our contract liabilities for the reporting period: Six Months Ended June 30, 2023 Contract liability balance, beginning of period(1) $ 36  Liabilities recognized during the period 17  Amounts recognized in revenue from beginning balance (15) Contract liability balance, end of period(1) $ 38  (1) Contract liabilities are included within Accrued liabilities and Other long-term liabilities in our consolidated balance sheets. The timing of revenue recognition, billings and cash collections results in billed receivables, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on our consolidated balance sheets. Other than contracts with customers with financing arrangements exceeding 12 months, revenue recognition is generally proximal to conversion to cash. The following table summarizes our balances in these accounts for the periods indicated (other than contract liabilities disclosed above): Receivables Contract Assets(1) Beginning of period balance $ 469  $ 24  End of period balance, June 30, 2023 511  23  (1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets. As of June 30, 2023, we did not have material unsatisfied performance obligations for contracts expected to be long-term or contracts for which we recognize revenue at an amount other than for which we have the right to invoice for goods or services delivered or performed.

v3.23.2

Business Segments	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Business Segments	We report our operations in three business segments—Gaming, SciPlay and iGaming—representing our different products and services. A detailed discussion regarding the products and services from which each reportable business segment derives its revenue is included in Notes 3 and 4 in our 2022 10-K. In evaluating financial performance, our Chief Operating Decision Maker focuses on AEBITDA as management’s primary segment measure of profit or loss, which is described in footnote (2) to the below table. The accounting policies of our business segments are the same as those described within the Notes in our 2022 10-K. The following tables present our segment information: Three Months Ended June 30, 2023 Gaming SciPlay iGaming Unallocated and Reconciling Items(1) Total Total revenue $ 471  $ 190  $ 70  $ —  $ 731  AEBITDA(2) 233  59  24  (35) $ 281  Reconciling items to net income from continuing operations before income taxes: D&A (79) (11) (12) (6) (108) Restructuring and other (3) (2) (9) (17) (31) Interest expense (78) (78) Other expense, net (16) (16) Stock-based compensation (28) (28) Net income from continuing operations before income taxes $ 20  (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income from continuing operations before income taxes. (2) AEBITDA is reconciled to net income (loss) from continuing operations before income taxes with the following adjustments: (1) depreciation and amortization expense and impairment charges (including goodwill impairments); (2) restructuring and other, which includes charges or expenses attributable to: (i) employee severance; (ii) management restructuring and related costs; (iii) restructuring and integration; (iv) cost savings initiatives; (v) major litigation; and (vi) acquisition- and disposition-related costs and other unusual items; (3) interest expense; (4) loss on debt financing transactions; (5) change in fair value of investments and remeasurement of debt and other; (6) other (expense) income, net, including foreign currency gains or losses and earnings from equity investments; and (7) stock-based compensation. AEBITDA is presented as our primary segment measure of profit or loss. Three Months Ended June 30, 2022 Gaming SciPlay iGaming Unallocated and Reconciling Items(1) Total Total revenue $ 390  $ 160  $ 60  $ —  $ 610  AEBITDA(2) 179  41  21  (29) $ 212  Reconciling items to net loss from continuing operations before income taxes: D&A (82) (6) (13) (6) (107) Restructuring and other (1) (1) (14) (26) (42) Interest expense (70) (70) Loss on debt financing transactions (147) (147) Gain on remeasurement of debt and other 20  20  Other income, net 2  2  Stock-based compensation (17) (17) Net loss from continuing operations before income taxes $ (149) (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net loss from continuing operations before income taxes. (2) AEBITDA is described in footnote (2) to the first table in this Note 4. Six Months Ended June 30, 2023 Gaming SciPlay iGaming Unallocated and Reconciling Items(1) Total Total revenue $ 890  $ 376  $ 134  $ —  $ 1,400  AEBITDA(2) 438  113  47  (69) $ 529  Reconciling items to net income from continuing operations before income taxes: D&A (156) (17) (24) (11) (208) Restructuring and other (11) (3) (10) (26) (50) Interest expense (153) (153) Other expense, net (18) (18) Stock-based compensation (54) (54) Net income from continuing operations before income taxes $ 46  (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income from continuing operations before income taxes. (2) AEBITDA is described in footnote (2) to the first table in this Note 4. Six Months Ended June 30, 2022 Gaming SciPlay iGaming Unallocated and Reconciling Items(1) Total Total revenue $ 745  $ 318  $ 120  $ —  $ 1,183  AEBITDA(2) 350  85  41  (62) $ 414  Reconciling items to net loss from continuing operations before income taxes: D&A (165) (10) (27) (13) (215) Restructuring and other (4) (3) (14) (57) (78) Interest expense (186) (186) Loss on debt financing transactions (147) (147) Gain on remeasurement of debt and other 27  27  Other income, net 4  4  Stock-based compensation (32) (32) Net loss from continuing operations before income taxes $ (213) (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net loss from continuing operations before income taxes. (2) AEBITDA is described in footnote (2) to the first table in this Note 4.

v3.23.2

Restructuring and Other	6 Months Ended
	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Restructuring and Other	Restructuring and other includes charges or expenses attributable to: (i) employee severance; (ii) management restructuring and related costs; (iii) restructuring and integration; (iv) cost savings initiatives; (v) major litigation; and (vi) acquisition- and disposition-related costs and other unusual items. The following table summarizes pre-tax restructuring and other costs for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Employee severance and related $ 4  $ 1  $ 13  $ 2  Strategic review and related(1) 14  22  18  52  Contingent acquisition consideration(2) 9  12  9  12  Restructuring, integration and other 4  7  10  12  Total $ 31  $ 42  $ 50  $ 78  (1) Includes costs associated with the ASX listing, Divestitures (including ongoing separation activities), rebranding and related activities. (2) Represents contingent consideration fair value adjustment (see Note 12).

v3.23.2

Receivables, Allowance for Credit Losses and Credit Quality of Receivables	6 Months Ended
	Jun. 30, 2023
Receivables [Abstract]
Receivables, Allowance for Credit Losses and Credit Quality of Receivables	Receivables The following table summarizes the components of current and long-term receivables, net: As of June 30, 2023 December 31, 2022 Current: Receivables $ 539  $ 493  Allowance for credit losses (40) (38) Current receivables, net 499  455  Long-term: Receivables 14  16  Allowance for credit losses (2) (2) Long-term receivables, net 12  14  Total receivables, net $ 511  $ 469  Allowance for Credit Losses We manage our receivable portfolios using both geography and delinquency as key credit quality indicators. The following summarizes geographical delinquencies of total receivables, net: As of June 30, 2023 Balances over 90 days past due December 31, 2022 Balances over 90 days past due Receivables: U.S. and Canada $ 346  $ 2  $ 297  $ 5  International 207  32  212  34  Total receivables 553  34  509  39  Receivables allowance: U.S. and Canada (18) (3) (18) (5) International (24) (16) (22) (22) Total receivables allowance (42) (19) (40) (27) Receivables, net $ 511  $ 15  $ 469  $ 12  Account balances are charged against the allowances after all internal and external collection efforts have been exhausted and the potential for recovery is considered remote. The activity in our allowance for receivable credit losses for each of the three and six months ended June 30, 2023 and 2022 is as follows: 2023 2022 Total U.S. and Canada International Total Beginning allowance for credit losses $ (40) $ (18) $ (22) $ (54) Provision (1) (1) —  (3) Charge-offs and recoveries 1  —  1  7  Allowance for credit losses as of March 31 $ (40) $ (19) $ (21) $ (50) Provision (4) —  (4) (1) Charge-offs and recoveries 2  1  1  3  Allowance for credit losses as of June 30 $ (42) $ (18) $ (24) $ (48) As of June 30, 2023 and December 31, 2022, 3% of our total receivables, net, were past due by over 90 days. Credit Quality of Receivables We have certain concentrations of outstanding receivables in international locations that impact our assessment of the credit quality of our receivables. We monitor the macroeconomic and political environment in each of these locations in our assessment of the credit quality of our receivables. The international customers with significant concentrations (generally deemed to be exceeding 10%) of our receivables with terms longer than one year are primarily in the Latin America region (“LATAM”) and are primarily comprised of Mexico, Peru and Argentina. The following table summarizes our LATAM receivables: As of June 30, 2023 Total Current Balances over 90 days past due Receivables $ 64  $ 41  $ 23  Allowance for credit losses (19) (10) (9) Receivables, net $ 45  $ 31  $ 14  We continuously review receivables and, as information concerning credit quality arise, reassess our expectations of future losses and record an incremental reserve if warranted at that time. Our current allowance for credit losses represents our current expectation of credit losses; however, future expectations could change as international unrest or other macro-economic factors impact the financial stability of our customers. The fair value of receivables is estimated by discounting expected future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings and remaining maturities. As of June 30, 2023 and December 31, 2022, the fair value of receivables, net, approximated the carrying value due to contractual terms of receivables generally being less than 24 months.

v3.23.2

Inventories	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories consisted of the following: As of June 30, 2023 December 31, 2022 Parts and work-in-process $ 133  $ 124  Finished goods 50  37  Total inventories $ 183  $ 161      Parts and work-in-process include parts for gaming machines and our finished goods inventory primarily consists of gaming machines for sale.

v3.23.2

Property and Equipment, net	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and equipment, net consisted of the following: As of June 30, 2023 December 31, 2022 Land $ 6  $ 6  Buildings and leasehold improvements 59  56  Gaming machinery and equipment 708  685  Furniture and fixtures 26  25  Construction in progress 9  9  Other property and equipment 96  88  Less: accumulated depreciation (690) (665) Total property and equipment, net $ 214  $ 204  Depreciation expense is excluded from cost of services, cost of product sales and other operating expenses and is separately presented within Depreciation, amortization and impairments. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Depreciation expense $ 30  $ 27  $ 57  $ 55

v3.23.2

Intangible Assets, net and Goodwill	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets, net and Goodwill	Intangible Assets, net The following tables present certain information regarding our intangible assets as of June 30, 2023 and December 31, 2022: As of June 30, 2023 December 31, 2022 Gross Carrying Value Accumulated Amortization Net Balance Gross Carrying Value Accumulated Amortization Net Balance Amortizable intangible assets: Customer relationships $ 902  $ (535) $ 367  $ 902  $ (503) $ 399  Intellectual property 946  (743) 203  948  (714) 234  Licenses 373  (287) 86  371  (273) 98  Brand names 129  (114) 15  129  (108) 21  Trade names 163  (156) 7  162  (122) 40  Patents and other 11  (7) 4  12  (7) 5  Total intangible assets $ 2,524  $ (1,842) $ 682  $ 2,524  $ (1,727) $ 797  The following reflects intangible amortization expense included within Depreciation, amortization and impairments. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Amortization expense(1) $ 61  $ 60  $ 119  $ 120  (1) The three and six months ended June 30, 2023 include intangible assets non-cash impairment charge of $4 million related to SciPlay restructuring of a certain foreign studio. Goodwill The table below reconciles the change in the carrying value of goodwill by business segment for the period from December 31, 2022 to June 30, 2023. Gaming(1) SciPlay iGaming Totals Balance as of December 31, 2022 $ 2,373  $ 213  $ 333  $ 2,919  Foreign currency adjustments 10  (2) 3  11  Balance as of June 30, 2023 $ 2,383  $ 211  $ 336  $ 2,930  (1) Accumulated goodwill impairment charges for the Gaming segment as of June 30, 2023 were $989 million.

v3.23.2

Software, net	6 Months Ended
	Jun. 30, 2023
Capitalized Computer Software, Net [Abstract]
Software, net	Software, net consisted of the following: As of June 30, 2023 December 31, 2022 Software $ 1,105  $ 1,064  Accumulated amortization (952) (919) Software, net $ 153  $ 145  The following reflects amortization of software included within D&A: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Amortization expense $ 17  $ 20  $ 32  $ 40

v3.23.2

Long-term Debt	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Long-term Debt	The following table reflects our outstanding debt (in order of priority and maturity): As of June 30, 2023 December 31, 2022 Final Maturity Rate(s) Face value Unamortized debt discount/premium and deferred financing costs, net Book value Book value Senior Secured Credit Facilities: SciPlay Revolver 2024 variable $ —  $ —  $ —  $ —  LNWI Revolver 2027 variable —  —  —  —  LNWI Term Loan B 2029 variable 2,178  (28) 2,150  2,159  LNWI Senior Notes: 2025 Unsecured Notes 2025 8.625% 550  (4) 546  545  2028 Unsecured Notes 2028 7.000% 700  (6) 694  693  2029 Unsecured Notes 2029 7.250% 500  (5) 495  495  Other 2023 — 1  —  1  2  Total long-term debt outstanding $ 3,929  $ (43) $ 3,886  $ 3,894  Less: current portion of long-term debt (23) (24) Long-term debt, excluding current portion $ 3,863  $ 3,870  Fair value of debt(1) $ 3,936  (1) Fair value of our fixed rate and variable interest rate debt is classified within Level 2 in the fair value hierarchy and has been calculated based on the quoted market prices of our securities. We were in compliance with the financial covenants under all debt agreements as of June 30, 2023 (for information regarding our financial covenants of all debt agreements, see Note 15 in our 2022 10-K). Loss on Debt Financing Transactions The following are components of the loss on debt financing transactions resulting from debt extinguishment and modification accounting for the three and six months ended June 30, 2022. No such transactions occurred during the three and six months ended June 30, 2023. Three and Six Months Ended June 30, 2022 Repayment of principal balance at premium $ 90  Unamortized debt discount and deferred financing costs, net 57  Total loss on debt refinancing transactions $ 147  For additional information regarding the terms of our credit facilities and Senior Notes, see Note 15 in our 2022 10-K.

v3.23.2

Fair Value Measurements	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Value Measurements	The fair value of our financial assets and liabilities is determined by reference to market data and other valuation techniques as appropriate. We believe the fair value of our financial instruments, which are principally cash and cash equivalents, restricted cash, receivables, other current assets, accounts payable and accrued liabilities, approximates their recorded values. Our assets and liabilities measured at fair value on a recurring basis are described below. Derivative Financial Instruments As of June 30, 2023, we held the following derivative instruments that were accounted for pursuant to ASC 815: Interest Rate Swap Contracts We use interest rate swap contracts as described below to mitigate gains or losses associated with the change in expected cash flows due to fluctuations in interest rates on our variable rate debt. In April 2022, we entered into interest rate swap contracts to hedge a portion of our interest expense associated with our new variable rate debt to effectively fix the interest rate that we pay. These interest rate swap contracts were designated as cash flow hedges under ASC 815. We pay interest at a weighted-average fixed rate of 2.8320% and receive interest at a variable rate equal to one-month Chicago Mercantile Exchange Term SOFR. The total notional amount of interest rate swaps was $700 million as of June 30, 2023. These hedges mature in April 2027. We also previously had interest rate swap contracts that matured in February 2022. All gains and losses from these hedges were recorded in other comprehensive income (loss) until the future underlying payment transactions occur. Any realized gains or losses resulting from the hedges were recognized (together with the hedged transaction) as interest expense. We estimated the fair value of our interest rate swap contracts by discounting the future cash flows of both the fixed rate and variable rate interest payments based on market yield curves. The inputs used to measure the fair value of our interest rate swap contracts were categorized as Level 2 in the fair value hierarchy as established by ASC 820. The following table shows the gain and interest expense recognized on our interest rate swap contracts: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Gain recorded in accumulated other comprehensive loss, net of tax $ 10  $ 2  $ 3  $ 5  Interest income (expense) recorded related to interest rate swap contracts 4  (3) 7  (6) We do not expect to reclassify material amounts from accumulated other comprehensive loss to interest expense in the next twelve months. The following table shows the effect of interest rate swap contracts designated as cash flow hedges on interest expense in the consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Total interest expense which reflects the effects of cash flow hedges $ (78) $ (70) $ (153) $ (186) Hedged item (5) (4) (10) (7) Derivative designated as hedging instrument 9  1  17  1  The following table shows the fair value of our hedges: As of Balance Sheet Line Item June 30, 2023 December 31, 2022 Interest rate swaps Other assets $ 34  $ 30  Contingent Acquisition Consideration Liabilities In connection with our acquisitions, we have recorded certain contingent consideration liabilities (including redeemable non-controlling interest), of which the values are primarily based on reaching certain earnings-based metrics. The related liabilities were recorded at fair value on their respective acquisition dates as a part of the consideration transferred and are remeasured each reporting period (other than for redeemable non-controlling interest, which is measured based on its redemption value). The inputs used to measure the fair value of our liabilities are categorized as Level 3 in the fair value hierarchy. The table below reconciles the change in the contingent acquisition consideration liabilities (including deferred purchase price) for the period from December 31, 2022 to June 30, 2023. Total Included in Accrued Liabilities Included in Other Long-Term Liabilities Balance as of December 31, 2022 $ 79  $ 34  $ 45  Payments (21) Fair value adjustments(1) 9  Other adjustments(2) (4) Balance as of June 30, 2023 $ 63  $ 44  $ 19  (1) Amount included in Restructuring and other (see Note 5). (2) Primarily represents extinguishment of $3 million in redeemable non-controlling interest liability associated with SciPlay’s acquisition of Alictus Yazilim Anonim Şirketi in 2022, as specified financial targets for the first year were not met. The charge was recorded in other income, net in our consolidated statements of operations.

v3.23.2

Stockholders' Equity	6 Months Ended
	Jun. 30, 2023
Compensation Related Costs [Abstract]
Stockholders' Equity	Changes in Stockholders’ Equity (Deficit) The following tables present certain information regarding our stockholders’ equity as of June 30, 2023 and 2022: Six Months Ended June 30, 2023 Common Stock Additional Paid in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Noncontrolling Interest Total January 1, 2023 $ 1  $ 1,370  $ 517  $ (580) $ (318) $ 171  $ 1,161  Settlement of liability awards —  25  —  —  —  —  25  Vesting of RSUs, net of tax withholdings and other —  (14) —  —  —  —  (14) Purchase of treasury stock —  —  —  (28) —  —  (28) Purchase of SciPlay’s Class A common stock —  (8) —  —  —  —  (8) Stock-based compensation —  15  —  —  —  —  15  Net income —  —  22  —  —  5  27  Other comprehensive income —  —  —  —  6  —  6  March 31, 2023 $ 1  $ 1,388  $ 539  $ (608) $ (312) $ 176  $ 1,184  Vesting of RSUs, net of tax withholdings and other —  1  —  —  —  —  1  Purchase of treasury stock —  —  —  (5) —  —  (5) Purchase of SciPlay’s Class A common stock —  (15) —  —  —  —  (15) Stock-based compensation —  13  —  —  —  —  13  Net (loss) income —  —  (1) —  —  6  5  Other comprehensive income —  —  —  —  47  —  47  June 30, 2023 $ 1  $ 1,387  $ 538  $ (613) $ (265) $ 182  $ 1,230  Six Months Ended June 30, 2022   Common Stock Additional Paid in Capital Retained Earnings (Accumulated Loss) Treasury Stock Accumulated Other Comprehensive Loss Noncontrolling Interest Total January 1, 2022 $ 1  $ 1,337  $ (3,158) $ (175) $ (261) $ 150  $ (2,106) Settlement of liability awards —  43  —  —  —  —  43  Vesting of RSUs, net of tax withholdings and other —  (31) —  —  —  —  (31) Purchase of treasury stock —  —  —  (51) —  —  (51) Stock-based compensation —  17  —  —  —  —  17  Net income —  —  26  —  —  2  28  Other comprehensive loss —  —  —  —  (37) —  (37) March 31, 2022 $ 1  $ 1,366  $ (3,132) $ (226) $ (298) $ 152  $ (2,137) Vesting of RSUs, net of tax withholdings and other —  —  —  —  —  —  —  Purchase of treasury stock —  —  —  (152) —  —  (152) Purchase of SciPlay’s Class A common stock —  (6) —  —  —  (1) (7) Stock-based compensation —  15  —  —  —  —  15  Net income —  —  3,291  —  —  4  3,295  Other comprehensive loss(1) —  —  —  —  (48) —  (48) June 30, 2022 $ 1  $ 1,375  $ 159  $ (378) $ (346) $ 155  $ 966  (1) Includes reclassification of $23 million accumulated other comprehensive loss into income due to the sale of discontinued operations (see Note 2). Stock-based Compensation The following reflects total stock-based compensation expense recognized under all programs: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Related to L&W stock options $ —  $ 1  $ —  $ 1  Related to L&W RSUs 21  15  40  27  Related to SciPlay RSUs 7  1  14  4  Total(1) $ 28  $ 17  $ 54  $ 32  (1) Includes $15 million and $26 million classified as liability awards for the three and six months ended June 30, 2023, respectively, and $6 million and $10 million for the three and six months ended June 30, 2022, respectively. Restricted Stock Units A summary of the changes in RSUs outstanding under our equity-based compensation plans during the six months ended June 30, 2023 is presented below: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Unvested RSUs as of December 31, 2022 1.7  $ 46.66  Granted 1.1  $ 57.15  Vested (0.9) $ 45.05  Cancelled (0.1) $ 46.83  Unvested RSUs as of June 30, 2023 1.8  $ 53.56  The weighted-average grant date fair value of RSUs granted during the six months ended June 30, 2023 and 2022 was $57.15 and $58.30, respectively. The fair value of each RSU grant is based on the market value of our common stock at the time of grant. As of June 30, 2023, we had $69 million in total unrecognized stock-based compensation expense relating to unvested RSUs that will be amortized over a weighted-average period of approximately two years. The fair value at vesting date of RSUs vested during the six months ended June 30, 2023 and 2022 was $51 million and $62 million, respectively. Series A Junior Participating Preferred Stock and Rights Agreement The 2018 Amended and Restated Rights Agreement, as described in Note 17 of our 2022 10-K, expired on June 19, 2023. Immediately prior to its expiration, no shares of Series A Junior Participating Preferred Stock were outstanding and no preferred share purchase rights had been exercised. At the time of the expiration of the agreement, the preferred share purchase rights expired and are no longer outstanding. Share Repurchase Programs On March 1, 2022, our Board of Directors approved a share repurchase program under which we are authorized to repurchase, from time to time through February 25, 2025, up to an aggregate amount of $750 million of our outstanding common stock. During the six months ended June 30, 2023, we repurchased 0.6 million shares of common stock under the program at an aggregate cost of $33 million. On May 9, 2022, SciPlay’s Board of Directors approved a share repurchase program under which it is authorized to repurchase, from time to time through May 9, 2024, up to an aggregate amount of $60 million of its outstanding Class A common stock. On May 3, 2023, SciPlay’s Board of Directors approved another share repurchase program under which it is authorized to repurchase, from time to time through May 3, 2024, up to an aggregate amount of $60 million of its outstanding Class A common stock. During the six months ended June 30, 2023, SciPlay repurchased 1.4 million shares of Class A common stock under the programs at an aggregate cost of $23 million.

v3.23.2

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	We consider new evidence (both positive and negative) at each reporting date that could affect our view of the future realization of deferred tax assets. We evaluate information such as historical financial results, historical taxable income, projected future taxable income, expected timing of the reversals of existing temporary differences and available prudent and feasible tax planning strategies in our analysis. Based on the available evidence, valuation allowances in certain U.S. and non-U.S. jurisdictions remain consistent as of June 30, 2023. Our income tax expense (including discrete items) was $15 million and $14 million for the three and six months ended June 30, 2023, respectively, and $1 million and $4 million for the three and six months ended June 30, 2022, respectively. In 2023, our effective tax rate differs from the U.S. statutory rate of 21% primarily as a result of certain non-deductible items including foreign exchange losses, partially mitigated by tax benefits from internal restructuring transactions in the first quarter of 2023. In all periods, we recorded tax expense relative to pre-tax earnings in jurisdictions without valuation allowances, including our 17% noncontrolling interest in SciPlay.

v3.23.2

Leases	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Leases	Our total operating lease expense for the three and six months ended June 30, 2023 was $5 million and $11 million, respectively, and $4 million and $10 million for the three and six months ended June 30, 2022, respectively. The total amount of variable and short-term lease payments was immaterial for all periods presented. Supplemental balance sheet and cash flow information related to operating leases is as follows: As of June 30, 2023 December 31, 2022 Operating lease right-of-use assets $ 43  $ 49  Accrued liabilities 18  17  Operating lease liabilities 31  37  Total operating lease liabilities $ 49  $ 54  Weighted average remaining lease term, units in years 4 4 Weighted average discount rate 5  % 5  % Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 10  $ 11  Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ —  $ 12  Lease liability maturities: Remainder of 2023 2024 2025 2026 2027 Thereafter Less Imputed Interest Total Operating leases $ 9  $ 17  $ 13  $ 9  $ 3  $ 3  $ (5) $ 49  As of June 30, 2023, we did not have material additional operating leases that have not yet commenced.

v3.23.2

Litigation	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Litigation	We are involved in various legal proceedings, which are described below. We record an accrual for legal contingencies when it is both probable that a liability has been incurred and the amount or range of the loss can be reasonably estimated (although, as discussed below, there may be an exposure to loss in excess of the accrued liability). We evaluate our accruals for legal contingencies at least quarterly and, as appropriate, establish new accruals or adjust existing accruals to reflect (1) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings and other relevant events and developments, (2) the advice and analyses of counsel and (3) the assumptions and judgment of management. Legal costs associated with our legal proceedings are expensed as incurred. We had accrued liabilities of $11 million for all of our legal matters that were contingencies as of June 30, 2023 and December 31, 2022. Substantially all of our legal contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss involves a series of complex judgments about future events. Consequently, the ultimate outcomes of our legal contingencies could result in losses in excess of amounts we have accrued. We may be unable to estimate a range of possible losses for some matters pending against us or our subsidiaries, even when the amount of damages claimed against us or our subsidiaries is stated because, among other things: (1) the claimed amount may be exaggerated or unsupported; (2) the claim may be based on a novel legal theory or involve a large number of parties; (3) there may be uncertainty as to the likelihood of a class being certified or the ultimate size of the class; (4) there may be uncertainty as to the outcome of pending appeals or motions; (5) the matter may not have progressed sufficiently through discovery or there may be significant factual or legal issues to be resolved or developed; and/or (6) there may be uncertainty as to the enforceability of legal judgments and outcomes in certain jurisdictions. Other matters have progressed sufficiently that we are able to estimate a range of possible loss. For those legal contingencies disclosed herein as well as those related to the previously disclosed settlement agreement entered into in February 2015 with SNAI S.p.a., as to which a loss is reasonably possible, whether in excess of a related accrued liability or where there is no accrued liability, and for which we are able to estimate a range of possible loss, the current estimated range is up to approximately $13 million in excess of the accrued liabilities (if any) related to those legal contingencies. This aggregate range represents management’s estimate of additional possible loss in excess of the accrued liabilities (if any) with respect to these matters based on currently available information, including any damages claimed by the plaintiffs, and is subject to significant judgment and a variety of assumptions and inherent uncertainties. For example, at the time of making an estimate, management may have only preliminary, incomplete, or inaccurate information about the facts underlying a claim; its assumptions about the future rulings of the court or other tribunal on significant issues, or the behavior and incentives of adverse parties, regulators, indemnitors or co‑defendants, may prove to be wrong; and the outcomes it is attempting to predict are often not amenable to the use of statistical or other quantitative analytical tools. In addition, from time to time an outcome may occur that management had not accounted for in its estimate because it had considered that outcome to be remote. Furthermore, as noted above, the aggregate range does not include any matters for which we are not able to estimate a range of possible loss. Accordingly, the estimated aggregate range of possible loss does not represent our maximum loss exposure. Any such losses could have a material adverse impact on our results of operations, cash flows or financial condition. The legal proceedings underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. Colombia Litigation Our subsidiary, LNWI, owned a minority interest in Wintech de Colombia S.A., or Wintech (now liquidated), which formerly operated the Colombian national lottery under a contract with Empresa Colombiana de Recursos para la Salud, S.A. (together with its successors, “Ecosalud”), an agency of the Colombian government. The contract provided for a penalty against Wintech, LNWI and the other shareholders of Wintech of up to $5.0 million if certain levels of lottery sales were not achieved. In addition, LNWI delivered to Ecosalud a $4.0 million surety bond as a further guarantee of performance under the contract. Wintech started the instant lottery in Colombia but, due to difficulties beyond its control, including, among other factors, social and political unrest in Colombia, frequently interrupted telephone service and power outages, and competition from another lottery being operated in a province of Colombia that we believe was in violation of Wintech’s exclusive license from Ecosalud, the projected sales level was not met for the year ended June 30, 1993. In 1993, Ecosalud issued a resolution declaring that the contract was in default. In 1994, Ecosalud issued a liquidation resolution asserting claims for compensation and damages against Wintech, LNWI and other shareholders of Wintech for, among other things, realization of the full amount of the penalty, plus interest, and the amount of the bond. LNWI filed separate actions opposing each resolution with the Tribunal Contencioso of Cundinamarca in Colombia (the “Tribunal”), which upheld both resolutions. LNWI appealed each decision to the Council of State. In May 2012, the Council of State upheld the contract default resolution, which decision was notified to us in August 2012. In October 2013, the Council of State upheld the liquidation resolution, which decision was notified to us in December 2013. In July 1996, Ecosalud filed a lawsuit against LNWI in the U.S. District Court for the Northern District of Georgia asserting many of the same claims asserted in the Colombia proceedings, including breach of contract, and seeking damages. In March 1997, the District Court dismissed Ecosalud’s claims. Ecosalud appealed the decision to the U.S. Court of Appeals for the Eleventh Circuit. The Court of Appeals affirmed the District Court’s decision in 1998. In June 1999, Ecosalud filed a collection proceeding against LNWI to enforce the liquidation resolution and recover the claimed damages. In May 2013, the Tribunal denied LNWI’s merit defenses to the collection proceeding and issued an order of payment of approximately 90 billion Colombian pesos, or approximately $30 million, plus default interest (potentially accrued since 1994 at a 12% statutory interest rate). LNWI filed an appeal to the Council of State, and on December 10, 2020, the Council of State issued a ruling affirming the Tribunal’s decision. On December 16, 2020, LNWI filed a motion for clarification of the Council of State’s ruling, which was denied on April 15, 2021. On April 22, 2021, LNWI filed a motion for reconsideration relating to that decision, which the Council of State denied on February 21, 2022. On May 24, 2022, the case was transferred from the Council of State to the Tribunal for further proceedings. On August 18, 2022, LNWI filed a constitutional challenge to the Council of State’s December 10, 2020 decision with that court, which was denied on October 7, 2022. On December 7, 2022, LNWI filed an appeal with the Council of State from the denial of the constitutional challenge, which was denied on May 24, 2023. On June 28, 2023, the Columbian Constitutional Court received the record of the constitutional appeal for further consideration. LNWI believes it has various defenses, including on the merits, against Ecosalud’s claims. Although we believe these claims will not result in a material adverse effect on our consolidated results of operations, cash flows or financial position, it is not feasible to predict the final outcome, and we cannot assure that these claims will not ultimately be resolved adversely to us or result in material liability. TCS John Huxley Matter On March 15, 2019, TCS John Huxley America, Inc., TCS John Huxley Europe Ltd., TCS John Huxley Asia Ltd., and Taiwan Fulgent Enterprise Co., Ltd. brought a civil action in the United States District Court for the Northern District of Illinois against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. and South African patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold to regulated casinos in the United States. On April 10, 2019, the defendants filed a motion to dismiss the plaintiffs’ complaint with prejudice. On April 25, 2019, the district court denied the defendants’ motion to dismiss without prejudice pursuant to the court’s local rules, after the plaintiffs advised that they intended to file an amended complaint. The plaintiffs filed their amended complaint on May 3, 2019, and on May 22, 2019, the defendants filed a motion to dismiss the plaintiffs’ amended complaint with prejudice. On March 20, 2020, the district court denied the defendants’ motion to dismiss the plaintiffs’ amended complaint, and defendants filed an answer to the plaintiffs’ amended complaint on June 19, 2020. On June 3, 2020, the trial court granted the defendants’ request to bifurcate proceedings in the case, with discovery to occur first into the statute of limitations and release defenses asserted by the defendants in their motion to dismiss, before proceeding into broader discovery. The trial court set a September 18, 2020, deadline for the parties to complete discovery relating to the statute of limitations and release defenses. On October 28, 2020, the court issued an order extending until January 15, 2021 the deadline for the parties to complete discovery relating to the statute of limitations defense. On February 9, 2021, the defendants filed a motion for summary judgment on their statute of limitations defense, addressing whether plaintiffs had actual knowledge of their claims prior to the start of the limitations period. The district court denied that motion for summary judgment on September 20, 2021. On January 13, 2023, the district court entered an order requiring, among other things, that the plaintiffs make a formal written settlement demand by January 20, 2023, that the defendants respond to that demand in writing by January 27, 2023, and that the parties file a status report by January 31, 2023 confirming that they have complied with the district court’s order. On January 31, 2023, the parties filed a joint status report confirming that they have complied with the district court’s order to make and respond to a formal written demand. Discovery closed on June 1, 2023. On June 30, 2023, the defendants filed a motion for summary judgment, which is pending. We are unable at this time to estimate a range of reasonably possible losses above the amount we have accrued for this matter due to the complexity of the plaintiffs’ claims, and the unpredictability of the outcome of the proceedings in the district court, and on any appeal therefrom. Tonkawa Tribe Matter On September 3, 2020, the Tonkawa Tribe of Indians of Oklahoma d/b/a Tonkawa Enterprises filed a putative class action complaint in the United States District Court for the District of Nevada against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. On October 5, 2020, the plaintiff filed a first amended complaint to add Cow Creek Band of Umpqua Tribe of Indians and the Umpqua Indian Development Corp., d/b/a Seven Feathers Casino as a plaintiff. On October 26, 2020, the plaintiffs filed a second amended complaint. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for card shufflers sold or leased to regulated casinos in the United States. The plaintiffs seek to represent a putative class of all regulated United States casinos directly leasing or purchasing card shufflers from the defendants on or after April 1, 2009. The complaint seeks unspecified money damages, the award of plaintiff’s costs of suit, including reasonable attorneys’ fees and expert fees, and the award of pre-judgment and post-judgment interest. On November 19, 2020, the defendants filed a motion to dismiss plaintiffs’ second amended complaint or, in the alternative, to compel arbitration of plaintiffs’ claims. On November 20, 2020, Plaintiffs filed a motion for partial summary judgment, seeking a finding that defendants are collaterally estopped from re-litigating issues litigated in the 2018 litigation versus Shuffle Tech International Corp., Aces Up Gaming, and Poydras-Talrick Holdings. On August 27, 2021, the Nevada district court entered an order transferring the lawsuit to the United States District Court for the Northern District of Illinois. On May 19, 2022, the Illinois district court granted defendants’ motion to compel arbitration of plaintiffs’ individual claims; stayed all proceedings in the lawsuit pending resolution of the arbitral process; and accordingly dismissed all pending motions without prejudice as moot. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them. Giuliano and Rancho’s Club Casino Matter On September 4, 2020, Alfred T. Giuliano, as liquidation trustee for RIH Acquisition NJ, LLC d/b/a The Atlantic Club Casino Hotel filed a putative class action complaint in the United States District Court for the Northern District of Illinois against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The plaintiffs seek to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the Defendants, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the court to treble, the award of plaintiff’s costs of suit, including attorneys’ fees, and the award of pre-judgment and post-judgment interest. On September 8, 2020, Rancho’s Club Casino, Inc., d/b/a Magnolia House Casino filed a putative class action complaint in the United States District Court for the Northern District of Illinois against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. In the complaint, the plaintiff asserts federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiff alleges that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The plaintiff seeks to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the defendants, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the court to treble, the award of plaintiff’s costs of suit, including attorneys’ fees, and the award of pre-judgment and post-judgment interest. On October 29, 2020, the trial court consolidated the Giuliano and Rancho’s Club Casino matters. On October 30, 2020, the plaintiffs in the consolidated action filed a first amended consolidated complaint. On November 9, 2020, the defendants filed a motion to dismiss the plaintiffs’ first amended consolidated complaint, and also filed a motion to compel arbitration of plaintiff Alfred T. Giuliano’s individual claims. On May 19, 2022, the Illinois district court granted defendants’ motion to compel arbitration; stayed all proceedings in the lawsuit pending resolution of the arbitral process; and accordingly dismissed all pending motions without prejudice. On May 31, 2022, defendants filed a motion to lift the stay of the lawsuit for the limited purpose of amending the court’s May 19, 2022 order to confirm that plaintiff Alfred T. Giuliano must proceed to arbitration on an individual basis rather than a class-wide basis. On June 10, 2022, plaintiff Alfred T. Giuliano filed a notice of voluntary dismissal without prejudice, and the court therefore denied as moot defendants’ motion to lift the stay in an order entered on March 28, 2023. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the consolidated lawsuit are without merit, and intend to vigorously defend against them. In re Automatic Card Shufflers Litigation Matter On April 2, 2021, Casino Queen, Inc. and Casino Queen Marquette, Inc. filed a putative class action complaint in the United States District Court for the Northern District of Illinois against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The plaintiffs seek to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the defendants, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the court to treble, the award of plaintiffs’ costs of suit, including attorneys’ fees, and the award of pre-judgment and post-judgment interest. On June 11, 2021, the defendants filed a motion to dismiss plaintiffs’ complaint, which the court denied on May 19, 2022. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them. Mohawk Gaming Enterprises Matter On November 9, 2020, Mohawk Gaming Enterprises LLC, d/b/a Akwesasne Mohawk Casino Resort, filed a demand for a putative class arbitration before the American Arbitration Association against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. (“Respondents”). In the complaint, the claimant asserts federal antitrust claims arising from the respondents’ procurement of particular U.S. patents. The claimant alleges that the respondents used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The claimant seeks to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the respondents, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the arbitration panel to treble, and the award of claimant’s costs of suit, including attorneys’ fees. Respondents filed their answering statement on December 9, 2020. On October 29, 2021, the claimant filed a memorandum in support of class arbitration, which Respondents opposed on December 3, 2021. On February 8, 2022, the Arbitrator issued a clause construction award, finding that the arbitration could proceed on behalf of a class or classes. On February 11, 2022, Respondents filed a petition to vacate the award in the New York Supreme Court. The Court denied Respondents’ petition on August 9, 2022, and on August 16, 2022, Respondents appealed to the New York Appellate Division, First Department, which denied Respondents’ appeal on June 22, 2023. On April 15, 2022, Respondents filed a motion to dismiss the claimant’s complaint, which the Arbitrator denied on July 26, 2022. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them. Boorn Matter On September 15, 2022, plaintiff Hannelore Boorn filed a putative class action against L&W, SciPlay Corporation, and Appchi Media Ltd. in the Fayette Circuit Court of the Commonwealth of Kentucky. In her complaint, plaintiff seeks to represent a putative class of all persons in Kentucky who, within the past five years, purchased and allegedly lost $5.00 or more worth of chips, in a 24-hour period, playing SciPlay’s online social casino games. The complaint asserts claims for alleged violations of Kentucky’s “recovery of gambling losses” statute and for unjust enrichment, and seeks unspecified money damages, the award of reasonable attorneys’ fees and costs, pre- and post-judgment interest, and injunctive and/or other declaratory relief. On October 18, 2022, defendants removed the action to the United States District Court for the Eastern District of Kentucky. On October 26, 2022, the plaintiff filed a notice voluntarily dismissing the lawsuit without prejudice. On October 27, 2022, the district court entered an order dismissing the lawsuit. On November 17, 2022, the plaintiff filed an arbitration demand against defendants before the American Arbitration Association, pursuant to which she seeks declaratory judgments that (1) SciPlay’s online social casino games constitute gambling under Kentucky law, and (2) SciPlay’s terms of service are void under Kentucky law. On January 12, 2023, the respondents filed their answering statement to plaintiff’s arbitration demand. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them. Allah Beautiful Matter On December 19, 2022, claimant Prince Imanifest Allah Beautiful filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The complaint asserts claims for alleged violations of New Jersey’s anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by New Jersey players of SciPlay’s online social casino games other than the claimant. On March 7, 2023, the respondent filed its answering statement to claimant’s arbitration demand. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them. Sprinkle Matter On December 12, 2022, claimant Matthew Sprinkle filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The complaint asserts claims for alleged violations of Ohio’s anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Ohio players of SciPlay’s online social casino games other than the claimant. On March 7, 2023, the respondent filed its answering statement to claimant’s arbitration demand. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them. Sornberger Matter On March 8, 2023, plaintiff Andrea Sornberger filed a complaint against SciPlay Corporation and SciPlay Games, LLC in the Circuit Court of the Franklin County, Alabama. The complaint asserts claims for alleged violations of Alabama anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Alabama players of SciPlay’s online social casino games other than the plaintiff, the award of interests and costs, and injunctive and other relief. On April 12, 2023, defendants removed the action to the United States District Court for the Northern District of Alabama. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them.

v3.23.2

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ (1)	$ 3,291	$ 21	$ 3,317

v3.23.2

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

v3.23.2

Description of the Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of L&W, its wholly owned subsidiaries, and those subsidiaries in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation.
Principles of Consolidation	In the opinion of L&W and its management, we have made all adjustments necessary to present fairly our consolidated financial position, results of operations, comprehensive income and cash flows for the periods presented. Such adjustments are of a normal, recurring nature. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2022 10-K. Interim results of operations are not necessarily indicative of results of operations to be expected for a full year.
Significant Accounting Policies	There have been no changes to our significant accounting policies described within the Notes of our 2022 10-K.
Computation of Basic and Diluted Net Income Attributable to L&W Per Share	Basic and diluted net income (loss) attributable to L&W per share are based upon net income (loss) attributable to L&W divided by the weighted average number of common shares outstanding during the period. Diluted net income attributable to L&W per share reflects the effect of the assumed exercise of stock options and RSUs only in the periods in which such effect would have been dilutive to net income from continuing operations.
New Accounting Guidance	There have been no recent accounting pronouncements or changes in accounting pronouncements since those described within the Notes of our 2022 10-K that are expected to have a material impact on our consolidated financial statements.

v3.23.2

Revenue Recognition (Policies)	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue Recognition	The timing of revenue recognition, billings and cash collections results in billed receivables, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on our consolidated balance sheets. Other than contracts with customers with financing arrangements exceeding 12 months, revenue recognition is generally proximal to conversion to cash.

v3.23.2

Business Segments (Policies)	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Segment Reporting	We report our operations in three business segments—Gaming, SciPlay and iGaming—representing our different products and services. A detailed discussion regarding the products and services from which each reportable business segment derives its revenue is included in Notes 3 and 4 in our 2022 10-K. In evaluating financial performance, our Chief Operating Decision Maker focuses on AEBITDA as management’s primary segment measure of profit or loss, which is described in footnote (2) to the below table. The accounting policies of our business segments are the same as those described within the Notes in our 2022 10-K.

v3.23.2

Income Taxes (Policies)	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	We consider new evidence (both positive and negative) at each reporting date that could affect our view of the future realization of deferred tax assets. We evaluate information such as historical financial results, historical taxable income, projected future taxable income, expected timing of the reversals of existing temporary differences and available prudent and feasible tax planning strategies in our analysis. Based on the available evidence, valuation allowances in certain U.S. and non-U.S. jurisdictions remain consistent as of June 30, 2023.

v3.23.2

Litigation (Policies)	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	We record an accrual for legal contingencies when it is both probable that a liability has been incurred and the amount or range of the loss can be reasonably estimated (although, as discussed below, there may be an exposure to loss in excess of the accrued liability). We evaluate our accruals for legal contingencies at least quarterly and, as appropriate, establish new accruals or adjust existing accruals to reflect (1) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings and other relevant events and developments, (2) the advice and analyses of counsel and (3) the assumptions and judgment of management. Legal costs associated with our legal proceedings are expensed as incurred. We had accrued liabilities of $11 million for all of our legal matters that were contingencies as of June 30, 2023 and December 31, 2022. Substantially all of our legal contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss involves a series of complex judgments about future events. Consequently, the ultimate outcomes of our legal contingencies could result in losses in excess of amounts we have accrued. We may be unable to estimate a range of possible losses for some matters pending against us or our subsidiaries, even when the amount of damages claimed against us or our subsidiaries is stated because, among other things: (1) the claimed amount may be exaggerated or unsupported; (2) the claim may be based on a novel legal theory or involve a large number of parties; (3) there may be uncertainty as to the likelihood of a class being certified or the ultimate size of the class; (4) there may be uncertainty as to the outcome of pending appeals or motions; (5) the matter may not have progressed sufficiently through discovery or there may be significant factual or legal issues to be resolved or developed; and/or (6) there may be uncertainty as to the enforceability of legal judgments and outcomes in certain jurisdictions. Other matters have progressed sufficiently that we are able to estimate a range of possible loss. For those legal contingencies disclosed herein as well as those related to the previously disclosed settlement agreement entered into in February 2015 with SNAI S.p.a., as to which a loss is reasonably possible, whether in excess of a related accrued liability or where there is no accrued liability, and for which we are able to estimate a range of possible loss, the current estimated range is up to approximately $13 million in excess of the accrued liabilities (if any) related to those legal contingencies. This aggregate range represents management’s estimate of additional possible loss in excess of the accrued liabilities (if any) with respect to these matters based on currently available information, including any damages claimed by the plaintiffs, and is subject to significant judgment and a variety of assumptions and inherent uncertainties. For example, at the time of making an estimate, management may have only preliminary, incomplete, or inaccurate information about the facts underlying a claim; its assumptions about the future rulings of the court or other tribunal on significant issues, or the behavior and incentives of adverse parties, regulators, indemnitors or co‑defendants, may prove to be wrong; and the outcomes it is attempting to predict are often not amenable to the use of statistical or other quantitative analytical tools. In addition, from time to time an outcome may occur that management had not accounted for in its estimate because it had considered that outcome to be remote. Furthermore, as noted above, the aggregate range does not include any matters for which we are not able to estimate a range of possible loss. Accordingly, the estimated aggregate range of possible loss does not represent our maximum loss exposure. Any such losses could have a material adverse impact on our results of operations, cash flows or financial condition. The legal proceedings underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate.

v3.23.2

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]
Disposal Groups, Including Discontinued Operations	The summarized results of our discontinued operations were as follows: Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Total revenue $ 51  $ 339  Total cost of revenue 18  168  Other operating expenses(1) 108  149  Operating (loss) income (75) 22  Total other income, net —  7  Net (loss) income from discontinued operations before income taxes (75) 29  Gain on sale of discontinued operations before income taxes 4,568  4,568  Total net income from discontinued operations before income taxes 4,493  4,597  Income tax expense (1,048) (1,057) Net income from discontinued operations, net of tax included in the consolidated statement of operations $ 3,445  $ 3,540  (1) The three and six months ended June 30, 2022 include stock-based compensation of $4 million and $11 million, respectively, and $78 million related to direct transaction closing fees.

v3.23.2

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Summary of Revenues by Type	The following table disaggregates revenues by type within each of our business segments: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Gaming Gaming operations $ 167  $ 163  $ 327  $ 319  Gaming machine sales 173  123  331  226  Gaming systems 72  60  127  111  Table products 59  44  105  89  Total $ 471  $ 390  $ 890  $ 745  SciPlay Mobile in-app purchases $ 170  $ 138  $ 335  $ 277  Web in-app purchases and other(1) 20  22  41  41  Total $ 190  $ 160  $ 376  $ 318  iGaming $ 70  $ 60  $ 134  $ 120  (1) Other primarily represents advertising revenue, which was not material in the periods presented.
Summary of Balances in Receivables, Contract Assets and Contract Liabilities Accounts	The following table summarizes the activity in our contract liabilities for the reporting period: Six Months Ended June 30, 2023 Contract liability balance, beginning of period(1) $ 36  Liabilities recognized during the period 17  Amounts recognized in revenue from beginning balance (15) Contract liability balance, end of period(1) $ 38  (1) Contract liabilities are included within Accrued liabilities and Other long-term liabilities in our consolidated balance sheets. The following table summarizes our balances in these accounts for the periods indicated (other than contract liabilities disclosed above): Receivables Contract Assets(1) Beginning of period balance $ 469  $ 24  End of period balance, June 30, 2023 511  23  (1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets.

v3.23.2

Business Segments (Tables)	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Operating Information by Segment	The following tables present our segment information: Three Months Ended June 30, 2023 Gaming SciPlay iGaming Unallocated and Reconciling Items(1) Total Total revenue $ 471  $ 190  $ 70  $ —  $ 731  AEBITDA(2) 233  59  24  (35) $ 281  Reconciling items to net income from continuing operations before income taxes: D&A (79) (11) (12) (6) (108) Restructuring and other (3) (2) (9) (17) (31) Interest expense (78) (78) Other expense, net (16) (16) Stock-based compensation (28) (28) Net income from continuing operations before income taxes $ 20  (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income from continuing operations before income taxes. (2) AEBITDA is reconciled to net income (loss) from continuing operations before income taxes with the following adjustments: (1) depreciation and amortization expense and impairment charges (including goodwill impairments); (2) restructuring and other, which includes charges or expenses attributable to: (i) employee severance; (ii) management restructuring and related costs; (iii) restructuring and integration; (iv) cost savings initiatives; (v) major litigation; and (vi) acquisition- and disposition-related costs and other unusual items; (3) interest expense; (4) loss on debt financing transactions; (5) change in fair value of investments and remeasurement of debt and other; (6) other (expense) income, net, including foreign currency gains or losses and earnings from equity investments; and (7) stock-based compensation. AEBITDA is presented as our primary segment measure of profit or loss. Three Months Ended June 30, 2022 Gaming SciPlay iGaming Unallocated and Reconciling Items(1) Total Total revenue $ 390  $ 160  $ 60  $ —  $ 610  AEBITDA(2) 179  41  21  (29) $ 212  Reconciling items to net loss from continuing operations before income taxes: D&A (82) (6) (13) (6) (107) Restructuring and other (1) (1) (14) (26) (42) Interest expense (70) (70) Loss on debt financing transactions (147) (147) Gain on remeasurement of debt and other 20  20  Other income, net 2  2  Stock-based compensation (17) (17) Net loss from continuing operations before income taxes $ (149) (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net loss from continuing operations before income taxes. (2) AEBITDA is described in footnote (2) to the first table in this Note 4. Six Months Ended June 30, 2023 Gaming SciPlay iGaming Unallocated and Reconciling Items(1) Total Total revenue $ 890  $ 376  $ 134  $ —  $ 1,400  AEBITDA(2) 438  113  47  (69) $ 529  Reconciling items to net income from continuing operations before income taxes: D&A (156) (17) (24) (11) (208) Restructuring and other (11) (3) (10) (26) (50) Interest expense (153) (153) Other expense, net (18) (18) Stock-based compensation (54) (54) Net income from continuing operations before income taxes $ 46  (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income from continuing operations before income taxes. (2) AEBITDA is described in footnote (2) to the first table in this Note 4. Six Months Ended June 30, 2022 Gaming SciPlay iGaming Unallocated and Reconciling Items(1) Total Total revenue $ 745  $ 318  $ 120  $ —  $ 1,183  AEBITDA(2) 350  85  41  (62) $ 414  Reconciling items to net loss from continuing operations before income taxes: D&A (165) (10) (27) (13) (215) Restructuring and other (4) (3) (14) (57) (78) Interest expense (186) (186) Loss on debt financing transactions (147) (147) Gain on remeasurement of debt and other 27  27  Other income, net 4  4  Stock-based compensation (32) (32) Net loss from continuing operations before income taxes $ (213) (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net loss from continuing operations before income taxes. (2) AEBITDA is described in footnote (2) to the first table in this Note 4.

v3.23.2

Restructuring and Other (Tables)	6 Months Ended
	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Schedule of Restructuring and Other Costs	The following table summarizes pre-tax restructuring and other costs for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Employee severance and related $ 4  $ 1  $ 13  $ 2  Strategic review and related(1) 14  22  18  52  Contingent acquisition consideration(2) 9  12  9  12  Restructuring, integration and other 4  7  10  12  Total $ 31  $ 42  $ 50  $ 78  (1) Includes costs associated with the ASX listing, Divestitures (including ongoing separation activities), rebranding and related activities. (2) Represents contingent consideration fair value adjustment (see Note 12).

v3.23.2

Receivables, Allowance for Credit Losses and Credit Quality of Receivables (Tables)	6 Months Ended
	Jun. 30, 2023
Receivables [Abstract]
Summary of Components of Accounts and Notes Receivable, Net	The following table summarizes the components of current and long-term receivables, net: As of June 30, 2023 December 31, 2022 Current: Receivables $ 539  $ 493  Allowance for credit losses (40) (38) Current receivables, net 499  455  Long-term: Receivables 14  16  Allowance for credit losses (2) (2) Long-term receivables, net 12  14  Total receivables, net $ 511  $ 469  The following summarizes geographical delinquencies of total receivables, net: As of June 30, 2023 Balances over 90 days past due December 31, 2022 Balances over 90 days past due Receivables: U.S. and Canada $ 346  $ 2  $ 297  $ 5  International 207  32  212  34  Total receivables 553  34  509  39  Receivables allowance: U.S. and Canada (18) (3) (18) (5) International (24) (16) (22) (22) Total receivables allowance (42) (19) (40) (27) Receivables, net $ 511  $ 15  $ 469  $ 12  The following table summarizes our LATAM receivables: As of June 30, 2023 Total Current Balances over 90 days past due Receivables $ 64  $ 41  $ 23  Allowance for credit losses (19) (10) (9) Receivables, net $ 45  $ 31  $ 14
Accounts Receivable, Allowance for Credit Loss	The activity in our allowance for receivable credit losses for each of the three and six months ended June 30, 2023 and 2022 is as follows: 2023 2022 Total U.S. and Canada International Total Beginning allowance for credit losses $ (40) $ (18) $ (22) $ (54) Provision (1) (1) —  (3) Charge-offs and recoveries 1  —  1  7  Allowance for credit losses as of March 31 $ (40) $ (19) $ (21) $ (50) Provision (4) —  (4) (1) Charge-offs and recoveries 2  1  1  3  Allowance for credit losses as of June 30 $ (42) $ (18) $ (24) $ (48)

v3.23.2

Inventories (Tables)	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories consisted of the following: As of June 30, 2023 December 31, 2022 Parts and work-in-process $ 133  $ 124  Finished goods 50  37  Total inventories $ 183  $ 161

v3.23.2

Property and Equipment, net (Tables)	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of Components of Property and Equipment	Property and equipment, net consisted of the following: As of June 30, 2023 December 31, 2022 Land $ 6  $ 6  Buildings and leasehold improvements 59  56  Gaming machinery and equipment 708  685  Furniture and fixtures 26  25  Construction in progress 9  9  Other property and equipment 96  88  Less: accumulated depreciation (690) (665) Total property and equipment, net $ 214  $ 204  Depreciation expense is excluded from cost of services, cost of product sales and other operating expenses and is separately presented within Depreciation, amortization and impairments. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Depreciation expense $ 30  $ 27  $ 57  $ 55

v3.23.2

Intangible Assets, net and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite and Indefinite-lived Intangible Assets	The following tables present certain information regarding our intangible assets as of June 30, 2023 and December 31, 2022: As of June 30, 2023 December 31, 2022 Gross Carrying Value Accumulated Amortization Net Balance Gross Carrying Value Accumulated Amortization Net Balance Amortizable intangible assets: Customer relationships $ 902  $ (535) $ 367  $ 902  $ (503) $ 399  Intellectual property 946  (743) 203  948  (714) 234  Licenses 373  (287) 86  371  (273) 98  Brand names 129  (114) 15  129  (108) 21  Trade names 163  (156) 7  162  (122) 40  Patents and other 11  (7) 4  12  (7) 5  Total intangible assets $ 2,524  $ (1,842) $ 682  $ 2,524  $ (1,727) $ 797
Schedule of Amortization Expense	The following reflects intangible amortization expense included within Depreciation, amortization and impairments. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Amortization expense(1) $ 61  $ 60  $ 119  $ 120  (1) The three and six months ended June 30, 2023 include intangible assets non-cash impairment charge of $4 million related to SciPlay restructuring of a certain foreign studio. The following reflects amortization of software included within D&A: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Amortization expense $ 17  $ 20  $ 32  $ 40
Reconciliation of the Carrying Amount of Goodwill, by Business Segment	The table below reconciles the change in the carrying value of goodwill by business segment for the period from December 31, 2022 to June 30, 2023. Gaming(1) SciPlay iGaming Totals Balance as of December 31, 2022 $ 2,373  $ 213  $ 333  $ 2,919  Foreign currency adjustments 10  (2) 3  11  Balance as of June 30, 2023 $ 2,383  $ 211  $ 336  $ 2,930  (1) Accumulated goodwill impairment charges for the Gaming segment as of June 30, 2023 were $989 million.

v3.23.2

Software, net (Tables)	6 Months Ended
	Jun. 30, 2023
Capitalized Computer Software, Net [Abstract]
Schedule of Software, net	Software, net consisted of the following: As of June 30, 2023 December 31, 2022 Software $ 1,105  $ 1,064  Accumulated amortization (952) (919) Software, net $ 153  $ 145
Schedule of Amortization Expense	The following reflects intangible amortization expense included within Depreciation, amortization and impairments. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Amortization expense(1) $ 61  $ 60  $ 119  $ 120  (1) The three and six months ended June 30, 2023 include intangible assets non-cash impairment charge of $4 million related to SciPlay restructuring of a certain foreign studio. The following reflects amortization of software included within D&A: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Amortization expense $ 17  $ 20  $ 32  $ 40

v3.23.2

Long-term Debt (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of Outstanding Debt	The following table reflects our outstanding debt (in order of priority and maturity): As of June 30, 2023 December 31, 2022 Final Maturity Rate(s) Face value Unamortized debt discount/premium and deferred financing costs, net Book value Book value Senior Secured Credit Facilities: SciPlay Revolver 2024 variable $ —  $ —  $ —  $ —  LNWI Revolver 2027 variable —  —  —  —  LNWI Term Loan B 2029 variable 2,178  (28) 2,150  2,159  LNWI Senior Notes: 2025 Unsecured Notes 2025 8.625% 550  (4) 546  545  2028 Unsecured Notes 2028 7.000% 700  (6) 694  693  2029 Unsecured Notes 2029 7.250% 500  (5) 495  495  Other 2023 — 1  —  1  2  Total long-term debt outstanding $ 3,929  $ (43) $ 3,886  $ 3,894  Less: current portion of long-term debt (23) (24) Long-term debt, excluding current portion $ 3,863  $ 3,870  Fair value of debt(1) $ 3,936  (1) Fair value of our fixed rate and variable interest rate debt is classified within Level 2 in the fair value hierarchy and has been calculated based on the quoted market prices of our securities.
Schedule of Components of Extinguishment and Modification of Debt	The following are components of the loss on debt financing transactions resulting from debt extinguishment and modification accounting for the three and six months ended June 30, 2022. No such transactions occurred during the three and six months ended June 30, 2023. Three and Six Months Ended June 30, 2022 Repayment of principal balance at premium $ 90  Unamortized debt discount and deferred financing costs, net 57  Total loss on debt refinancing transactions $ 147

v3.23.2

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of gains (loss) on interest rate swap contracts	The following table shows the gain and interest expense recognized on our interest rate swap contracts: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Gain recorded in accumulated other comprehensive loss, net of tax $ 10  $ 2  $ 3  $ 5  Interest income (expense) recorded related to interest rate swap contracts 4  (3) 7  (6)
Schedule of the effect of interest rate swap contracts designated as cash flow hedges	The following table shows the effect of interest rate swap contracts designated as cash flow hedges on interest expense in the consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Total interest expense which reflects the effects of cash flow hedges $ (78) $ (70) $ (153) $ (186) Hedged item (5) (4) (10) (7) Derivative designated as hedging instrument 9  1  17  1
Fair value of liabilities measured on recurring basis	The following table shows the fair value of our hedges: As of Balance Sheet Line Item June 30, 2023 December 31, 2022 Interest rate swaps Other assets $ 34  $ 30
Asset Acquisition, Contingent Consideration	The table below reconciles the change in the contingent acquisition consideration liabilities (including deferred purchase price) for the period from December 31, 2022 to June 30, 2023. Total Included in Accrued Liabilities Included in Other Long-Term Liabilities Balance as of December 31, 2022 $ 79  $ 34  $ 45  Payments (21) Fair value adjustments(1) 9  Other adjustments(2) (4) Balance as of June 30, 2023 $ 63  $ 44  $ 19  (1) Amount included in Restructuring and other (see Note 5). (2) Primarily represents extinguishment of $3 million in redeemable non-controlling interest liability associated with SciPlay’s acquisition of Alictus Yazilim Anonim Şirketi in 2022, as specified financial targets for the first year were not met. The charge was recorded in other income, net in our consolidated statements of operations.

v3.23.2

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2023
Compensation Related Costs [Abstract]
Schedule of Stockholders' Deficit	The following tables present certain information regarding our stockholders’ equity as of June 30, 2023 and 2022: Six Months Ended June 30, 2023 Common Stock Additional Paid in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Noncontrolling Interest Total January 1, 2023 $ 1  $ 1,370  $ 517  $ (580) $ (318) $ 171  $ 1,161  Settlement of liability awards —  25  —  —  —  —  25  Vesting of RSUs, net of tax withholdings and other —  (14) —  —  —  —  (14) Purchase of treasury stock —  —  —  (28) —  —  (28) Purchase of SciPlay’s Class A common stock —  (8) —  —  —  —  (8) Stock-based compensation —  15  —  —  —  —  15  Net income —  —  22  —  —  5  27  Other comprehensive income —  —  —  —  6  —  6  March 31, 2023 $ 1  $ 1,388  $ 539  $ (608) $ (312) $ 176  $ 1,184  Vesting of RSUs, net of tax withholdings and other —  1  —  —  —  —  1  Purchase of treasury stock —  —  —  (5) —  —  (5) Purchase of SciPlay’s Class A common stock —  (15) —  —  —  —  (15) Stock-based compensation —  13  —  —  —  —  13  Net (loss) income —  —  (1) —  —  6  5  Other comprehensive income —  —  —  —  47  —  47  June 30, 2023 $ 1  $ 1,387  $ 538  $ (613) $ (265) $ 182  $ 1,230  Six Months Ended June 30, 2022   Common Stock Additional Paid in Capital Retained Earnings (Accumulated Loss) Treasury Stock Accumulated Other Comprehensive Loss Noncontrolling Interest Total January 1, 2022 $ 1  $ 1,337  $ (3,158) $ (175) $ (261) $ 150  $ (2,106) Settlement of liability awards —  43  —  —  —  —  43  Vesting of RSUs, net of tax withholdings and other —  (31) —  —  —  —  (31) Purchase of treasury stock —  —  —  (51) —  —  (51) Stock-based compensation —  17  —  —  —  —  17  Net income —  —  26  —  —  2  28  Other comprehensive loss —  —  —  —  (37) —  (37) March 31, 2022 $ 1  $ 1,366  $ (3,132) $ (226) $ (298) $ 152  $ (2,137) Vesting of RSUs, net of tax withholdings and other —  —  —  —  —  —  —  Purchase of treasury stock —  —  —  (152) —  —  (152) Purchase of SciPlay’s Class A common stock —  (6) —  —  —  (1) (7) Stock-based compensation —  15  —  —  —  —  15  Net income —  —  3,291  —  —  4  3,295  Other comprehensive loss(1) —  —  —  —  (48) —  (48) June 30, 2022 $ 1  $ 1,375  $ 159  $ (378) $ (346) $ 155  $ 966  (1) Includes reclassification of $23 million accumulated other comprehensive loss into income due to the sale of discontinued operations (see Note 2).
Schedule of Stock-based Compensation Expense Recognized	The following reflects total stock-based compensation expense recognized under all programs: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Related to L&W stock options $ —  $ 1  $ —  $ 1  Related to L&W RSUs 21  15  40  27  Related to SciPlay RSUs 7  1  14  4  Total(1) $ 28  $ 17  $ 54  $ 32  (1) Includes $15 million and $26 million classified as liability awards for the three and six months ended June 30, 2023, respectively, and $6 million and $10 million for the three and six months ended June 30, 2022, respectively.
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity	A summary of the changes in RSUs outstanding under our equity-based compensation plans during the six months ended June 30, 2023 is presented below: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Unvested RSUs as of December 31, 2022 1.7  $ 46.66  Granted 1.1  $ 57.15  Vested (0.9) $ 45.05  Cancelled (0.1) $ 46.83  Unvested RSUs as of June 30, 2023 1.8  $ 53.56

v3.23.2

Leases (Tables)	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Schedule of Supplemental Operating Lease Information	Supplemental balance sheet and cash flow information related to operating leases is as follows: As of June 30, 2023 December 31, 2022 Operating lease right-of-use assets $ 43  $ 49  Accrued liabilities 18  17  Operating lease liabilities 31  37  Total operating lease liabilities $ 49  $ 54  Weighted average remaining lease term, units in years 4 4 Weighted average discount rate 5  % 5  % Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 10  $ 11  Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ —  $ 12
Maturities of Lease Liabilities	Lease liability maturities: Remainder of 2023 2024 2025 2026 2027 Thereafter Less Imputed Interest Total Operating leases $ 9  $ 17  $ 13  $ 9  $ 3  $ 3  $ (5) $ 49

v3.23.2

Description of the Business and Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended		6 Months Ended
	Aug. 08, 2023 USD ($) $ / shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($) shares	Jun. 30, 2023 USD ($) Segment shares	Jun. 30, 2022 USD ($) shares
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of business segments | Segment				3
Foreign currency transaction gain (loss) | $		$ (25)	$ 2	$ (38)	$ 0
Common stock equivalents included in calculation of diluted net income				2
Employee Stock
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)		2	2		2
Related to L&W RSUs
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)		2	2		2
SciPlay
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of voting interest in SciPlay		98.00%		98.00%
Other SciPlay Owners
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of SciPlay stock owned by other parties		17.00%		17.00%
SciPlay Acquisition | Subsequent Event
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Business acquisition, share price (in USD per share) | $ / shares	$ 22.95
Acquisitions related to continuing operations, total consideration | $	$ 500

v3.23.2

Discontinued Operations - Income Statement and Balance Sheet Disclosures (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Income tax expense		$ (15,000)	$ (1,000)	$ (14,000)	$ (4,000)
Net income from discontinued operations, net of tax included in the consolidated statement of operations				$ 0	3,540,000
Discontinued Operations
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Total revenue			51,000		339,000
Total cost of revenue			18,000		168,000
Other operating expenses(1)	[1]		108,000		149,000
Operating (loss) income			(75,000)		22,000
Total other income, net			0		7,000
Net (loss) income from discontinued operations before income taxes			(75,000)		29,000
Gain on sale of discontinued operations before income taxes			4,568,000		4,568,000
Total net income from discontinued operations before income taxes			4,493,000		4,597,000
Income tax expense			(1,048,000)		(1,057,000)
Net income from discontinued operations, net of tax included in the consolidated statement of operations			3,445,000		3,540,000
Discontinued operations, stock-based compensation			4,000		11,000
Disposal group, direct transaction closing fees			$ 78,000		$ 78,000
[1] (1) The three and six months ended June 30, 2022 include stock-based compensation of $4 million and $11 million, respectively, and $78 million related to direct transaction closing fees.

v3.23.2

Revenue Recognition - Summary of Revenue by Type (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenue		$ 731	$ 610	$ 1,400	$ 1,183
Gaming
Disaggregation of Revenue [Line Items]
Total revenue		471	390	890	745
Gaming | Gaming operations
Disaggregation of Revenue [Line Items]
Total revenue		167	163	327	319
Gaming | Gaming machine sales
Disaggregation of Revenue [Line Items]
Total revenue		173	123	331	226
Gaming | Gaming systems
Disaggregation of Revenue [Line Items]
Total revenue		72	60	127	111
Gaming | Table products
Disaggregation of Revenue [Line Items]
Total revenue		59	44	105	89
SciPlay
Disaggregation of Revenue [Line Items]
Total revenue		190	160	376	318
SciPlay | Mobile in-app purchases
Disaggregation of Revenue [Line Items]
Total revenue		170	138	335	277
SciPlay | Web in-app purchases and other
Disaggregation of Revenue [Line Items]
Total revenue	[1]	20	22	41	41
iGaming
Disaggregation of Revenue [Line Items]
Total revenue		$ 70	$ 60	$ 134	$ 120
[1] (1) Other primarily represents advertising revenue, which was not material in the periods presented.

v3.23.2

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Rental income revenue	$ 123	$ 118	$ 240	$ 231

v3.23.2

Revenue Recognition - Summary of Contract Liabilities (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Change In Contract Liabilities [Roll Forward]
Contract liability balance, beginning of period	$ 36	[1]
Liabilities recognized during the period	17
Amounts recognized in revenue from beginning balance	(15)
Contract liability balance, end of period	$ 38	[1]
[1] (1) Contract liabilities are included within Accrued liabilities and Other long-term liabilities in our consolidated balance sheets.

v3.23.2

Revenue Recognition - Balances in Receivables and Contract Asset Accounts (Details) - USD ($) $ in Millions		Jun. 30, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Receivables		$ 511	$ 469
Contract Assets	[1]	$ 23	$ 24
[1] (1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets.

v3.23.2

Business Segments - Additional Information (Details)	6 Months Ended
	Jun. 30, 2023 Segment
Segment Reporting [Abstract]
Number of business segments	3

v3.23.2

Business Segments - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions		3 Months Ended			6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022		Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Total revenue		$ 731	$ 610		$ 1,400	$ 1,183
AEBITDA	[1]	281	212		529	414
Reconciling items to net income from continuing operations before income taxes:
Depreciation, amortization and impairments		(108)	(107)		(208)	(215)
Restructuring and other		(31)	(42)		(50)	(78)
Interest expense		(78)	(70)		(153)	(186)
Loss on debt financing transactions		0	(147)		0	(147)
Gain on remeasurement of debt and other		0	20		0	27
Other income (expense), net		(16)	2		(18)	4
Stock-based compensation		(28)	(17)		(54)	(32)
Net income (loss) from continuing operations before income taxes		20	(149)		46	(213)
Unallocated and Reconciling Items
Segment Reporting Information [Line Items]
Total revenue	[2]	0	0		0	0
AEBITDA	[1],[2]	(35)	(29)		(69)	(62)
Reconciling items to net income from continuing operations before income taxes:
Depreciation, amortization and impairments	[2]	(6)	(6)		(11)	(13)
Restructuring and other	[2]	(17)	(26)		(26)	(57)
Interest expense	[2]	(78)	(70)		(153)	(186)
Loss on debt financing transactions			(147)	[2]		(147)
Gain on remeasurement of debt and other	[2]		20			27
Other income (expense), net	[2]	(16)	2		(18)	4
Stock-based compensation	[2]	(28)	(17)		(54)	(32)
Gaming
Segment Reporting Information [Line Items]
Total revenue		471	390		890	745
AEBITDA	[1]	233	179		438	350
Reconciling items to net income from continuing operations before income taxes:
Depreciation, amortization and impairments		(79)	(82)		(156)	(165)
Restructuring and other		(3)	(1)		(11)	(4)
SciPlay
Segment Reporting Information [Line Items]
Total revenue		190	160		376	318
AEBITDA	[1]	59	41		113	85
Reconciling items to net income from continuing operations before income taxes:
Depreciation, amortization and impairments		(11)	(6)		(17)	(10)
Restructuring and other		(2)	(1)		(3)	(3)
iGaming
Segment Reporting Information [Line Items]
Total revenue		70	60		134	120
AEBITDA	[1]	24	21		47	41
Reconciling items to net income from continuing operations before income taxes:
Depreciation, amortization and impairments		(12)	(13)		(24)	(27)
Restructuring and other		$ (9)	$ (14)		$ (10)	$ (14)
[1] (2) AEBITDA is reconciled to net income (loss) from continuing operations before income taxes with the following adjustments: (1) depreciation and amortization expense and impairment charges (including goodwill impairments); (2) restructuring and other, which includes charges or expenses attributable to: (i) employee severance; (ii) management restructuring and related costs; (iii) restructuring and integration; (iv) cost savings initiatives; (v) major litigation; and (vi) acquisition- and disposition-related costs and other unusual items; (3) interest expense; (4) loss on debt financing transactions; (5) change in fair value of investments and remeasurement of debt and other; (6) other (expense) income, net, including foreign currency gains or losses and earnings from equity investments; and (7) stock-based compensation. AEBITDA is presented as our primary segment measure of profit or loss. [2] (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income from continuing operations before income taxes.

v3.23.2

Restructuring and Other (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restructuring Cost and Reserve [Line Items]
Restructuring and other		$ 31	$ 42	$ 50	$ 78
Employee severance and related
Restructuring Cost and Reserve [Line Items]
Restructuring and other		4	1	13	2
Strategic review and related
Restructuring Cost and Reserve [Line Items]
Restructuring and other	[1]	14	22	18	52
Contingent acquisition consideration
Restructuring Cost and Reserve [Line Items]
Restructuring and other	[2]	9	12	9	12
Restructuring, integration and other
Restructuring Cost and Reserve [Line Items]
Restructuring and other		$ 4	$ 7	$ 10	$ 12
[1] (1) Includes costs associated with the ASX listing, Divestitures (including ongoing separation activities), rebranding and related activities. [2] (2) Represents contingent consideration fair value adjustment (see Note 12).

v3.23.2

Receivables, Allowance for Credit Losses and Credit Quality of Receivables - Components of Accounts and Notes Receivable, Net (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Current:
Receivables	$ 539	$ 493
Allowance for credit losses	(40)	(38)
Current receivables, net	499	455
Long-term:
Receivables	14	16
Allowance for credit losses	(2)	(2)
Long-term receivables, net	12	14
Total receivables, net	$ 511	$ 469

v3.23.2

Receivables, Allowance for Credit Losses and Credit Quality of Receivables - Accounts and Notes Receivable, Net by Geography and Delinquency (Details) - USD ($) $ in Millions	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment, Past Due [Line Items]
Notes receivable	$ 553		$ 509
Notes receivable allowance	(42)	$ (40)	(40)	$ (48)	$ (50)	$ (54)
Total receivables, net	511		469
U.S. and Canada
Financing Receivable, Recorded Investment, Past Due [Line Items]
Notes receivable	346		297
Notes receivable allowance	(18)	(19)	(18)
International
Financing Receivable, Recorded Investment, Past Due [Line Items]
Notes receivable	207		212
Notes receivable allowance	(24)	$ (21)	(22)
Balances over 90 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Notes receivable	34		39
Notes receivable allowance	(19)		(27)
Total receivables, net	15		12
Balances over 90 days past due | U.S. and Canada
Financing Receivable, Recorded Investment, Past Due [Line Items]
Notes receivable	2		5
Notes receivable allowance	(3)		(5)
Balances over 90 days past due | International
Financing Receivable, Recorded Investment, Past Due [Line Items]
Notes receivable	32		34
Notes receivable allowance	$ (16)		$ (22)

v3.23.2

Receivables, Allowance for Credit Losses and Credit Quality of Receivables - Allowance for Accounts and Notes Receivable Activity (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2022
Allowance for Credit Loss [Roll Forward]
Beginning allowance for credit losses	$ (40)	$ (40)	$ (50)	$ (54)
Provision	(4)	(1)	(1)	(3)
Charge-offs and recoveries	2	1	3	7
Ending allowance for credit losses	(42)	(40)	$ (48)	$ (50)
Balances over 90 days past due
Allowance for Credit Loss [Roll Forward]
Beginning allowance for credit losses		(27)
Ending allowance for credit losses	$ (19)
Financing receivable, percent past due	3.00%				3.00%
U.S. and Canada
Allowance for Credit Loss [Roll Forward]
Beginning allowance for credit losses	$ (19)	(18)
Provision	0	(1)
Charge-offs and recoveries	1	0
Ending allowance for credit losses	(18)	(19)
U.S. and Canada | Balances over 90 days past due
Allowance for Credit Loss [Roll Forward]
Beginning allowance for credit losses		(5)
Ending allowance for credit losses	(3)
International
Allowance for Credit Loss [Roll Forward]
Beginning allowance for credit losses	(21)	(22)
Provision	(4)	0
Charge-offs and recoveries	1	1
Ending allowance for credit losses	(24)	(21)
International | Balances over 90 days past due
Allowance for Credit Loss [Roll Forward]
Beginning allowance for credit losses		$ (22)
Ending allowance for credit losses	$ (16)

v3.23.2

Receivables, Allowance for Credit Losses and Credit Quality of Receivables - Schedule of LATAM Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts Receivable, Net, Current	$ 499	$ 455
Latin America
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables	64
Allowance for credit losses	(19)
Receivables, net	45
Latin America | Current
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables	41
Allowance for credit losses	(10)
Accounts Receivable, Net, Current	31
Latin America | Balances over 90 days past due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables	23
Allowance for credit losses	(9)
Accounts Receivable, Net, Current	$ 14

v3.23.2

Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Parts and work-in-process	$ 133	$ 124
Finished goods	50	37
Inventories	$ 183	$ 161

v3.23.2

Property and Equipment, net (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Less: accumulated depreciation	$ (690)		$ (690)		$ (665)
Total property and equipment, net	214		214		204
Depreciation expense	30	$ 27	57	$ 55
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	6		6		6
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	59		59		56
Gaming machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	708		708		685
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	26		26		25
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	9		9		9
Other property and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 96		$ 96		$ 88

v3.23.2

Intangible Assets, net and Goodwill - Schedule of Finite and Indefinite-lived Intangible Assets (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Amortizable intangible assets:
Amortizable intangible assets, gross carrying value	$ 2,524	$ 2,524
Amortizable intangible assets, accumulated amortization	(1,842)	(1,727)
Amortizable intangible assets, net balance	682	797
Customer relationships
Amortizable intangible assets:
Amortizable intangible assets, gross carrying value	902	902
Amortizable intangible assets, accumulated amortization	(535)	(503)
Amortizable intangible assets, net balance	367	399
Intellectual property
Amortizable intangible assets:
Amortizable intangible assets, gross carrying value	946	948
Amortizable intangible assets, accumulated amortization	(743)	(714)
Amortizable intangible assets, net balance	203	234
Licenses
Amortizable intangible assets:
Amortizable intangible assets, gross carrying value	373	371
Amortizable intangible assets, accumulated amortization	(287)	(273)
Amortizable intangible assets, net balance	86	98
Brand names
Amortizable intangible assets:
Amortizable intangible assets, gross carrying value	129	129
Amortizable intangible assets, accumulated amortization	(114)	(108)
Amortizable intangible assets, net balance	15	21
Trade names
Amortizable intangible assets:
Amortizable intangible assets, gross carrying value	163	162
Amortizable intangible assets, accumulated amortization	(156)	(122)
Amortizable intangible assets, net balance	7	40
Patents and other
Amortizable intangible assets:
Amortizable intangible assets, gross carrying value	11	12
Amortizable intangible assets, accumulated amortization	(7)	(7)
Amortizable intangible assets, net balance	$ 4	$ 5

v3.23.2

Intangible Assets, net and Goodwill - Intangible Amortization Expense (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023		Jun. 30, 2022	Jun. 30, 2023		Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 61	[1]	$ 60	$ 119	[1]	$ 120
Intangible assets non-cash impairment charge	$ 4			$ 4
[1] (1) The three and six months ended June 30, 2023 include intangible assets non-cash impairment charge of $4 million related to SciPlay restructuring of a certain foreign studio.

v3.23.2

Intangible Assets, net and Goodwill - Reconciliation of the Carrying Amount of Goodwill (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Goodwill [Roll Forward]
Balance at the beginning of the period	$ 2,919
Foreign currency adjustments	11
Balance at the end of the period	2,930
Gaming
Goodwill [Roll Forward]
Balance at the beginning of the period	2,373	[1]
Foreign currency adjustments	10	[1]
Balance at the end of the period	2,383	[1]
Accumulated goodwill impairment charges	989
SciPlay
Goodwill [Roll Forward]
Balance at the beginning of the period	213
Foreign currency adjustments	(2)
Balance at the end of the period	211
iGaming
Goodwill [Roll Forward]
Balance at the beginning of the period	333
Foreign currency adjustments	3
Balance at the end of the period	$ 336
[1] (1) Accumulated goodwill impairment charges for the Gaming segment as of June 30, 2023 were $989 million.

v3.23.2

Software, net (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Capitalized Computer Software, Net [Abstract]
Software	$ 1,105		$ 1,105		$ 1,064
Accumulated amortization	(952)		(952)		(919)
Software, net	153		153		$ 145
Capitalized Computer Software, Amortization	$ 17	$ 20	$ 32	$ 40

v3.23.2

Long-term Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Millions		Jun. 30, 2023	Dec. 31, 2022
Debt Instrument
Face value		$ 3,929
Unamortized debt discount/premium and deferred financing costs, net		43
Book value		3,886	$ 3,894
Less: current portion of long-term debt		(23)	(24)
Long-term debt, excluding current portion		3,863	3,870
Fair value of debt	[1]	$ 3,936
Senior Notes | 2025 Unsecured Notes
Debt Instrument
Rate(s)		8.625%
Face value		$ 550
Unamortized debt discount/premium and deferred financing costs, net		4
Book value		$ 546	545
Senior Notes | 2028 Unsecured Notes
Debt Instrument
Rate(s)		7.00%
Face value		$ 700
Unamortized debt discount/premium and deferred financing costs, net		6
Book value		$ 694	693
Senior Notes | 2029 Unsecured Notes
Debt Instrument
Rate(s)		7.25%
Face value		$ 500
Unamortized debt discount/premium and deferred financing costs, net		5
Book value		495	495
Senior Notes | Other
Debt Instrument
Face value		1
Unamortized debt discount/premium and deferred financing costs, net		0
Other | Other
Debt Instrument
Book value		1	2
Senior Secured Credit Facilities | Secured Debt | SciPlay Revolver
Debt Instrument
Face value		0
Unamortized debt discount/premium and deferred financing costs, net		0
Book value		0	0
Senior Secured Credit Facilities | Secured Debt | LNWI Revolver
Debt Instrument
Face value		0
Unamortized debt discount/premium and deferred financing costs, net		0
Book value		0	0
Senior Secured Credit Facilities | Secured Debt | LNWI Term Loan B
Debt Instrument
Face value		2,178
Unamortized debt discount/premium and deferred financing costs, net		28
Book value		$ 2,150	$ 2,159
[1] (1) Fair value of our fixed rate and variable interest rate debt is classified within Level 2 in the fair value hierarchy and has been calculated based on the quoted market prices of our securities.

v3.23.2

Long-term Debt - Loss on Debt Financing Transactions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Debt Disclosure [Abstract]
Repayment of principal balance at premium		$ 90		$ 90
Unamortized debt discount and deferred financing costs, net		57		57
Total loss on debt refinancing transactions	$ 0	$ (147)	$ 0	$ (147)

v3.23.2

Fair Value Measurements - Additional Information (Details) - Cash Flow Hedging - Designated as Hedging Instrument - Interest rate swap $ in Millions	Jun. 30, 2023 USD ($)
Derivative [Line Items]
Derivative average fixed interest rate	2.832%
Notional amount	$ 700

v3.23.2

Fair Value Measurements - Gains (Loss) and Interest Expense on Interest Rate Swap Contracts (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Gain recorded in accumulated other comprehensive loss, net of tax	$ 10	$ 2	$ 3	$ 5
Interest rate swap
Derivative Instruments, Gain (Loss) [Line Items]
Interest income (expense) recorded related to interest rate swap contracts	$ 4	$ (3)	$ 7	$ (6)

v3.23.2

Fair Value Measurements - Effect of Interest Rate Swap Contracts (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Total interest expense which reflects the effects of cash flow hedges	$ (78)	$ (70)	$ (153)	$ (186)
Hedged item	(5)	(4)	(10)	(7)
Derivative designated as hedging instrument	$ 9	$ 1	$ 17	$ 1

v3.23.2

Fair Value Measurements - Fair Value of Hedges (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Interest rate swap | Other assets
Derivatives, Fair Value [Line Items]
Derivative fair value	$ 34	$ 30

v3.23.2

Fair Value Measurements - Contingent Acquisition Consideration (Details) - USD ($) $ in Millions		3 Months Ended	6 Months Ended
		Jun. 30, 2023	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Balance as of December 31, 2022			$ 79
Payments			(21)
Fair value adjustments	[1]		(9)
Other adjustments		$ (3)	(4)	[2]
Balance as of June 30, 2023		63	63
Included in Accrued Liabilities
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Balance as of December 31, 2022			34
Balance as of June 30, 2023		44	44
Included in Other Long-Term Liabilities
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Balance as of December 31, 2022			45
Balance as of June 30, 2023		$ 19	$ 19
[1] (1) Amount included in Restructuring and other (see Note 5). [2] (2) Primarily represents extinguishment of $3 million in redeemable non-controlling interest liability associated with SciPlay’s acquisition of Alictus Yazilim Anonim Şirketi in 2022, as specified financial targets for the first year were not met. The charge was recorded in other income, net in our consolidated statements of operations.

v3.23.2

Stockholders' Equity - Schedule of Changes in Equity (Details) - USD ($) $ in Millions	3 Months Ended					6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022		Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance	$ 1,184	$ 1,161	$ (2,137)		$ (2,106)	$ 1,161	$ (2,106)
Settlement of liability awards		25			43
Vesting of RSUs, net of tax withholdings and other	1	(14)	0		(31)
Purchase of treasury stock	(5)	(28)	(152)		(51)
Purchase of SciPlay’s Class A common stock	(15)	(8)	(7)
Stock-based compensation	13	15	15		17
Net income	5	27	3,295		28	32	3,323
Other comprehensive income (loss)	47	6	(48)	[1]	(37)
Stockholders' equity, ending balance	1,230	1,184	966		(2,137)	1,230	966
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance	1	1	1		1	1	1
Stockholders' equity, ending balance	1	1	1		1	1	1
Additional Paid in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance	1,388	1,370	1,366		1,337	1,370	1,337
Settlement of liability awards		25			43
Vesting of RSUs, net of tax withholdings and other	1	(14)			(31)
Purchase of SciPlay’s Class A common stock	15	(8)	6
Stock-based compensation	13	15	15		17
Stockholders' equity, ending balance	1,387	1,388	1,375		1,366	1,387	1,375
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance	539	517	(3,132)		(3,158)	517	(3,158)
Net income	(1)	22	3,291		26
Stockholders' equity, ending balance	538	539	159		(3,132)	538	159
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance	(608)	(580)	(226)		(175)	(580)	(175)
Purchase of treasury stock	(5)	(28)			(51)
Stockholders' equity, ending balance	(613)	(608)	(378)		(226)	(613)	(378)
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance	(312)	(318)	(298)		(261)	(318)	(261)
Other comprehensive income (loss)	47	6	(48)	[1]	(37)
Stockholders' equity, ending balance	(265)	(312)	(346)		(298)	(265)	(346)
Accumulated Other Comprehensive Loss | Discontinued Operations
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)			23
Noncontrolling Interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance	176	171	152		150	171	150
Purchase of SciPlay’s Class A common stock	0		(1)
Net income	6	5	4		2
Stockholders' equity, ending balance	$ 182	$ 176	$ 155		$ 152	$ 182	$ 155
[1] (1) Includes reclassification of $23 million accumulated other comprehensive loss into income due to the sale of discontinued operations (see Note 2).

v3.23.2

Stockholders' Equity - Stock Based Compensation Expense (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	[1]	$ 28	$ 17	$ 54	$ 32
Related to L&W stock options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense		0	1	0	1
Related to L&W RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense		21	15	40	27
Related to L&W RSUs | SciPlay
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense		7	1	14	4
Liability Awards
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense		$ 15	$ 6	$ 26	$ 10
[1] (1) Includes $15 million and $26 million classified as liability awards for the three and six months ended June 30, 2023, respectively, and $6 million and $10 million for the three and six months ended June 30, 2022, respectively.

v3.23.2

Stockholders' Equity - Schedule of Restricted Stock Units (Details) - Related to L&W RSUs - $ / shares shares in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Number of Restricted Stock Units
Unvested RSU's at beginning of period (in shares)	1.7
Granted (in shares)	1.1
Vested (in shares)	(0.9)
Cancelled (in shares)	(0.1)
Unvested RSU's at end of period (in shares)	1.8
Weighted Average Grant Date Fair Value
Unvested RSU's at beginning of period (in dollars per share)	$ 46.66
Granted (in dollars per share)	57.15	$ 58.30
Vested (in dollars per share)	45.05
Cancelled (in dollars per share)	46.83
Unvested RSU's at end of period (in dollars per share)	$ 53.56

v3.23.2

Stockholders' Equity - Narrative (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 19, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Unrecognized stock based compensation	$ 69,000,000				$ 69,000,000
Unrecognized stock based compensation, period for recognition					2 years
Stock purchase program, aggregate cost	5,000,000	$ 28,000,000	$ 152,000,000	$ 51,000,000
Share Repurchase Program, March 2022
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock repurchase program, authorized amount	750,000,000				$ 750,000,000
Stock repurchase program, shares acquired (in shares)					600,000
Stock purchase program, aggregate cost					$ 33,000,000
Share Repurchase Program, May 2022
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock repurchase program, authorized amount	60,000,000				$ 60,000,000
Stock repurchase program, shares acquired (in shares)					1,400,000
Stock purchase program, aggregate cost					$ 23,000,000
Share Repurchase Program, May 2023
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock repurchase program, authorized amount	$ 60,000,000				$ 60,000,000
Amended and Restated Rights Agreement | Series A Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Preferred shares outstanding (in shares)							0
Amended and Restated Rights Agreement | Series A Preferred Stock | Preferred Stock Purchase Rights
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Preferred shares issued on exercise (in shares)							0
Related to L&W RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Granted (in dollars per share)					$ 57.15	$ 58.30
Awards vested in period, fair value					$ 51,000,000	$ 62,000,000

v3.23.2

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Valuation Allowance [Line Items]
Income tax expense	$ 15	$ 1	$ 14	$ 4
Effective income tax rate reconciliation, at federal statutory income tax rate, percent	21.00%
Other SciPlay Owners
Valuation Allowance [Line Items]
Percentage of SciPlay stock owned by other parties	17.00%		17.00%

v3.23.2

Leases - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Operating lease expenses	$ 5	$ 4	$ 11	$ 10

v3.23.2

Leases - Supplemental Operating Lease Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Assets and Liabilities, Lessee [Abstract]
Operating lease right-of-use assets	$ 43		$ 49
Accrued liabilities	18		17
Operating lease liabilities	31		37
Total operating lease liabilities	$ 49		$ 54
Weighted average remaining lease term, units in years	4 years		4 years
Weighted average discount rate	5.00%		5.00%
Cash Flow, Operating Activities, Lessee [Abstract]
Operating cash flows for operating leases	$ 10	$ 11
Operating leases	$ 0	$ 12

v3.23.2

Leases - Maturities of Lease Liabilities (Details) $ in Millions	Jun. 30, 2023 USD ($)
Leases [Abstract]
Remainder of 2023	$ 9
2024	17
2025	13
2026	9
2027	3
Thereafter	3
Less Imputed Interest	(5)
Total	$ 49

v3.23.2

Litigation (Details) $ in Millions, $ in Billions	1 Months Ended
	Jun. 30, 1999 USD ($)	Jun. 30, 1999 COP ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 1993 USD ($)
Other Commitments [Line Items]
Loss contingency accrual			$ 11	$ 11
Contractual penalty			$ 13
Guarantee of Business Revenue
Other Commitments [Line Items]
Contractual penalty					$ 5
Loss contingency deposit of surety bond					$ 4
Ecosalud
Other Commitments [Line Items]
Litigation settlement, amount awarded to other party	$ 30	$ 90

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