Brightstar stands by tech legacy against discount lottery bids 

M&A proceedings have forced Brightstar to shed its heritage identity of International Game Technology (IGT Plc), yet leadership backs the transformation to dominate a rapidly changing global lotteries market.

Yesterday, Vince Sadusky (CEO) and Max Chiara presented the first financial update of Brightstar as a stand-alone NYSE lottery technology and services business, following the sale of IGT Plc’s Games and Digital units to the Apollo Global fund.

“Our name has changed… but nothing can change the foundations that built our company and its 50-year experience, track record, and success.

“We remain the world’s largest lottery operator, running day-to-day operations across nine jurisdictions. We are also the primary lottery technology provider to the world’s largest lotteries and the number one provider of digital lottery solutions globally.”

Promises kept!

Following months of intense negotiations, Sadusky underlined Brightstar’s solid foundations, having secured net cash proceeds of $4bn from the sale of IGT Games — “above investors’ expectations.”

Brightstar is founded on a pledge to deliver its largest-ever shareholder return: a $1.1bn cash reward distributed via a $3 per-share dividend, combined with a $500m share repurchase programme — the largest reward in company history, including IGT’s tenure.

Yet most significantly for investors, Brightstar has retained its long-standing Lotto Italia contract, renewed for a further nine years by ADM, Italy’s Customs and Monopolies Agency. The renewal was lauded by Sadusky, who admitted it had faced its toughest lottery tender competition in the bid submitted by SISAL and Flutter Entertainment.

Max Chiara: Brightstar

Tough macro climate

Turning to Q2 results, Brightstar’s performance was described as underwhelming by observers, with revenue increasing 3% year-on-year to $631m, but adjusted EBITDA declining by 5% as reported (and 9% at constant currency) to $274m.

Leadership acknowledged that the company’s debut as a stand-alone entity was hindered by persistent global macroeconomic uncertainties and severe currency fluctuations.

CFO Max Chiara pointed to the absence of billion-dollar multi-state jackpots in US states as a notable factor behind the EBITDA decline, compounded by softer LMA incentive contributions.

“The macro environment continues to present headwinds, particularly in regions where discretionary spending is under pressure,” said Chiara. “Despite these conditions, our business fundamentals remain intact, and we’re actively managing what we can control — namely, operating efficiency, innovation, and delivering shareholder value.”

Chiara also emphasised that while the second quarter reflected transitional challenges, strategic positives including strong iLottery growth and the renewal of the Italy Lotto licence position the company for a stronger second half of 2025 trading.

Analysts questioned whether Brightstar’s return to a stand-alone lottery business makes it more vulnerable to macroeconomic conditions, such as the impact of inflation on discretionary spending, especially amongst US consumers.

Chiara rebuffed such concerns: “For us, the deciding factor is our ability to provide our lotteries and partners with incremental growth through new innovations, features, and games. We know that we can stimulate demand within existing contracts and when we target new ones.”

Leadership views the term “stand-alone” as overly simplistic in describing Brightstar, which is building out its new MYLOTTERIES Play app — now gaining significant market share. The app forms part of a broader strategy integrating iGaming and sports betting to deliver a comprehensive digital experience.

US lotteries too discount focused 

As anticipated, leadership was questioned about Brightstar’s ability to win new lottery contracts and maintain existing partnerships, following an increasingly competitive cycle of global lottery tenders.

Sadusky responded by shifting focus to the position of lottery authorities — particularly in the US who must contend with increased macroeconomic and societal pressures.

“For context, our average customer relationship is about 30 years, and the average revenue-weighted contract life remaining across our portfolio is seven years. This provides us with significant stability and visibility regarding revenue, profit, and cash flow.”

Sadusky underscored that Brightstar has the technological pedigree to compete for any US contract but will not compromise its pricing principles. He cited the recent examples of Ohio and New Mexico, where Brightstar declined to pursue opportunities due to valuation misalignment:

“We didn’t win those opportunities based on value, as we were very disciplined on price, as our technology carries a premium.”

For states seeking price concessions, Sadusky issued a clear warning: “This business comes down to credibility, and that is why we continue to power more lottery platforms than any other operator.

“We will continue to win and innovate, and aim to compete across all attributes of these RFPs. But the pricing for these contracts is individual, and entirely unique in terms of the dynamics and competitiveness desired.”

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