Australia-listed slot machine maker and digital content provider Aristocrat Leisure Ltd says about AUD45 million (US$31.7 million currently) of the US$127.5-million settlement won in an intellectual-property case against market rival Light & Wonder Inc, will go towards recovery of corporate legal costs from bringing the action.
That is according to comments by Trevor Croker, Aristocrat Leisure’s chief executive and managing director, at the firm’s annual general meeting (AGM) on Thursday.
Mr Croker told shareholders: “Following the recent legal settlement with Light & Wonder, we expect to recognise a AUD45-million legal cost recovery … relating to legal costs incurred to date.”
The sum included circa AUD16 million of legal costs likely to be incurred in the current year. The firm’s financial year runs from October 1 to September 30 in the following calendar year.
Mr Croker stated in his Thursday comments: “The remainder of the US$127.5 million settlement is expected to be booked as a significant item.”
In January, Aristocrat Leisure and Light & Wonder jointly announced that Aristocrat would drop legal action in the United States and Australia, about alleged infringement of Aristocrat trade secrets concerning Light & Wonder’s “Dragon Train” game.
In Thursday’s AGM, Neil Chatfield, Aristocrat’s chairman, stated: “Aristocrat takes a proactive approach to defending its intellectual property and we are fully committed to protecting the great work of our dedicated creative and technical teams.”
He added: “We will not hesitate to robustly defend and enforce our rights to ensure fair competition within the industry.”
CEO Mr Croker told shareholders in terms of the outlook for the group: “We … see continued organic growth potential in gaming markets such as Asia where demographic and income trends support long-term growth.”
Other opportunities included in Europe, which he said was “underpenetrated” by the group; while there were chances presented by “market openings such as the UAE, due to launch in 2027”.
That was a reference to Wynn Resorts Ltd’s new casino complex Wynn Al Marjan Island, in Ras Al Khaimah, in the United Arab Emirates (UAE), scheduled to open in spring 2027.
Mr Croker also mentioned “ongoing opportunities to gain share” in the group’s “land-based casino systems, while also benefitting from new customer wins” for the firm’s digital player account management platform, “which supports both iGaming and online sports betting”.
The CEO further observed that the group was “excited” about a number of “small acquisitions that will add capabilities aligned” with the company’s “technology platform” and build the group’s “AI [artificial intelligence] knowledge,” as Aristocrat “will be investing further in new opportunities arising from these deals”.
He mentioned October’s acquisition of Awager, a provider in the regulated live slot streaming segment, and this month’s announcement it was acquiring U.S.-based Gaming Analytics Inc for an undisclosed consideration. The latter is a provider of AI-powered tools to land- based operators for real-time player analytics, slot optimisation and marketing automation.
In November, Aristocrat announced financial-year statutory net profit at circa US$857 million amid restructuring of its digital business.
