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Light & Wonder has agreed to pay Aristocrat Leisure $127.5 million to settle ongoing litigation concerning intellectual property infringement related to its Dragon Train slot game. The settlement resolves claims that Light & Wonder misappropriated confidential information and infringed copyright belonging to Aristocrat.
Background of the Dispute
Aristocrat initiated legal action against Light & Wonder, alleging that Dragon Train bore substantial similarities to its Dragon Link series, which launched in 2017. Dragon Train entered the market in March 2024. Aristocrat’s complaint centered on the misappropriation of intellectual property, copying of game mechanics and gameplay elements, and copyright infringement. The company also raised concerns about the involvement of former Aristocrat executives in Dragon Train’s development.
In September 2024, Aristocrat secured a preliminary injunction that effectively halted Light & Wonder’s ability to commercialize Dragon Train. Legal proceedings continued in both Australian and United States courts. At the time of the initial ruling, Light & Wonder indicated it would appeal the decision and defend its position vigorously, stating it “respectfully disagreed” with the court’s findings.
Dragon Train represented less than 5% of Light & Wonder’s projected full-year 2025 adjusted EBITDA, which was forecast between $1.43 billion and $1.47 billion.
Settlement Terms and Acknowledgments
Under the settlement agreement, Light & Wonder acknowledged that certain confidential information obtained from Aristocrat was used in the development of both Dragon Train and another title, Jewel of the Dragon. The company agreed to cease global commercialization of both games and make best efforts to remove existing installations from casino floors.
Light & Wonder committed to discontinue any further use of Aristocrat’s proprietary information and copyright works. The settlement also requires Light & Wonder to permanently destroy all documents containing the disputed information.
Both parties agreed to establish confidential procedures for identifying and resolving potential issues related to the use of Aristocrat’s mathematical information in connection with new and existing Light & Wonder games. The companies acknowledged the significant investment and innovation required for game development and affirmed their commitment to respecting intellectual property rights to maintain fair competition in the gaming market.
As part of the settlement, Aristocrat will dismiss all claims against Light & Wonder in both the United States and Australia.
Industry Reactions
Aristocrat CEO and Managing Director Trevor Croker welcomed the resolution, emphasizing the company’s commitment to protecting its intellectual property while supporting fair competition in the gaming sector.
“As an ideas and innovation company our intellectual property is vital to our ongoing success,” Croker said. “We are committed to protecting the great work of our dedicated creative and technical teams. We welcome this positive outcome, which includes significant financial compensation and follows the decisive action we took to ensure the preservation of Aristocrat’s valuable intellectual property assets.”
Croker highlighted that the preliminary injunction secured in September 2024 demonstrated the court’s recognition that Light & Wonder was able to develop Dragon Train by using Aristocrat’s trade secrets without making equivalent investments in time and resources.
Light & Wonder CEO Matt Wilson expressed satisfaction with the settlement, stating the company’s commitment to conducting business appropriately and respecting both its own intellectual property rights and those of competitors.
“This matter arose when a former employee inappropriately used certain Aristocrat math without our knowledge and in direct violation of our policies,” Wilson said. “Upon discovery, we took immediate action and have since implemented strengthened processes aimed at preventing similar issues in the future. This settlement protects the interests of our customers, employees and shareholders, and allows us to continue our focus on developing and delivering the market-leading content our customers expect, without distraction or disruption.”
Rising Trend of IP Disputes in Gaming
The Aristocrat versus Light & Wonder case represents a growing trend of intellectual property disputes in the gaming industry, where IP protection has become increasingly critical to business strategy.
Another high-profile case involves Spribe, developer of the Aviator crash game, and Georgian gaming studio Aviator LLC over imagery and trademark infringement. Spribe secured an injunction against Aviator LLC in 2024, blocking the production of a copycat crash game. Aviator LLC’s subsequent attempt to appeal was abandoned, with the court dismissing the case and criticizing the company’s conduct as “petulant.”
Joel Vertes, partner and co-head of intellectual property at CMS in London, recently told iGB that the increase in IP disputes reflects the substantial value associated with gaming development. He noted that in Europe, game mechanics are difficult to protect directly, requiring developers to rely on a bundle of rights including brand protection and copyright in source code.
“I don’t see any reason why you shouldn’t weaponise your IP,” Vertes said. “If you’ve filed a patent over some mechanics in a game, or you’ve registered designs over the graphic user interface, why would you not go out and enforce it?”
About the Companies
Aristocrat Leisure is a publicly traded Australian gaming company that develops slot machines and gaming software for land-based and online casinos worldwide. The company is listed on the Australian Securities Exchange.
Light & Wonder, formerly known as Scientific Games, is a global gaming entertainment company that provides gaming machines, table games, gaming systems, and online gaming content to casinos and gaming operators. The company is headquartered in Las Vegas and trades on NASDAQ.
Source: iGB
