How Brightstar’s Six‑Year California Lottery Deal Will Impact Brightstar Lottery (BRSL) Investors

• Brightstar Lottery PLC recently announced that its subsidiary, Brightstar Global Solutions, signed a six‑year instant ticket printing and services contract with the California Lottery, awarded after a competitive procurement and granting access to its full instant ticket content, patented Infinity Instants™ technology, and support in marketing, game development, and analytics.
• This long-term renewal with one of the largest U.S. lotteries reinforces Brightstar’s role as a key technology partner to government-run games across multiple jurisdictions worldwide.
• We’ll now examine how securing this six-year California Lottery contract could influence Brightstar’s investment narrative built around digital expansion and contract stability.

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Brightstar Lottery Investment Narrative Recap

To own Brightstar Lottery, you need to believe that its mix of long dated government contracts and growing digital offerings can support gradually improving profitability, despite recent losses and a slow revenue growth outlook. The six year California Lottery renewal underpins the contract stability part of that story, but does not remove key risks such as regulatory change, earnings volatility around jackpots, or pressure on cash flows from capital intensive licenses.

The December 2025 long term Lotterywest agreement in Western Australia is particularly relevant here, as it also extended Brightstar’s contract base, added digital channels, and widened system responsibilities. Taken together with the new California deal, these arrangements highlight how contract duration and breadth of services link directly to the main near term catalyst, which is a clearer path to more stable earnings and cash generation.

Yet beneath the comfort of multi year contracts, investors should still be aware of how vulnerable Brightstar remains to shifts in gambling regulation and...

Read the full narrative on Brightstar Lottery (it's free!)

Brightstar Lottery's narrative projects $2.6 billion revenue and $295.9 million earnings by 2028. This requires 2.5% yearly revenue growth and a $462.9 million earnings increase from $-167.0 million.

Uncover how Brightstar Lottery's forecasts yield a $20.17 fair value, a 33% upside to its current price.

Exploring Other Perspectives

Two Simply Wall St Community valuations for Brightstar range from US$10.24 to US$20.17, underscoring how far opinions can diverge. You should weigh that spread against the importance of long dated lottery contracts as a stabilizing force for what is still a low growth, capital intensive business model.

Explore 2 other fair value estimates on Brightstar Lottery - why the stock might be worth 32% less than the current price!

Build Your Own Brightstar Lottery Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Brightstar Lottery research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free Brightstar Lottery research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Brightstar Lottery's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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