Brightstar Lottery’s 36% U.S. iLottery Surge: Can Digital Offset Jackpot Weakness?

Brightstar Lottery reported first quarter 2026 results showing modest reported revenue growth but stronger underlying momentum on a constant currency basis. Revenue reached approximately $590 million, marking a 1% increase as reported and a 3% increase at constant currency, excluding service revenue amortization and the impact of the U.K. transition. Growth was notably driven by Italy’s 3% same-store sales increase, supported by new premium Scratch & Win ticket launches, alongside favorable mix improvements in the U.S. Conversely, the U.K. transition and weak New Jersey multistate lottery market agreement (LMA) performance moderated growth. Adjusted EBITDA rose 15% as reported and 5% at constant currency to $287 million, with margin expansion primarily benefiting from operational discipline, cost savings from the Optima program, and expense recoveries, offset partially by investments in human capital and growth initiatives. Inflationary pressures on postage and freight costs had a minor but manageable impact on margins.