Slot machine maker Aristocrat Leisure Ltd will drop a legal action in the United States and Australia against market rival Light & Wonder Inc, as the latter has agreed to pay Aristocrat US$127.5 million to resolve a dispute about alleged infringement of Aristocrat trade secrets over Light & Wonder’s “Dragon Train” game.
Monday’s joint statement issued via the Australian Securities Exchange, where each is listed, said: “Light & Wonder acknowledges that certain Aristocrat math information was used in connection with the development of both Dragon Train and ‘Jewel of the Dragon’.”
The statement added: “Light & Wonder has agreed to permanently cease commercialisation of these games globally and to make best efforts to remove existing installations.”
The update said specific terms of the settlement “remain confidential”.
Though the joint announcement added: “Light & Wonder has agreed not to make any further use of the Aristocrat math information and copyright works at issue in the litigation, and to permanently destroy all documents reflecting that information.”
“Aristocrat’s claims against Light & Wonder in Australia and the United States will be dismissed,” stated the update.
The statement also outlined: “The parties have agreed to confidential procedures for identifying and resolving any issues concerning the use of Aristocrat math in connection with certain existing Light & Wonder hold and spin games and certain hold and spin games now in development, including games for which Light & Wonder was ordered to produce math models to Aristocrat in the United States litigation.”
The joint announcement said both parties “acknowledge the significant investment and innovation that goes into game design and development including the complex and confidential underlying math and the need to ensure protection of those valuable, proprietary assets”.
Matt Wilson, Light & Wonder chief executive, was cited saying his firm was “pleased to resolve this matter and move forward”.
He added: “We are firmly committed to doing business the right way – respecting our competitors’ intellectual property rights while protecting our own rights.
“This matter arose when a former employee inappropriately used certain Aristocrat math without our knowledge and in direct violation of our policies.”
Mr Wilson further noted: “Upon discovery, we took immediate action and have since implemented strengthened processes aimed at preventing similar issues in the future.”
Trevor Croker, CEO and managing director of Aristocrat, was quoted in the statement as saying: “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.
“This decisive action included securing a preliminary injunction in September 2024, at which time the court recognised” that Light & Wonder had been able “to develop Dragon Train by using Aristocrat’s valuable trade secrets and without investing the equivalent time and money.”
In April 2025, Light & Wonder said it would stop selling Jewel of the Dragon, and would review hold and spin games amid litigation with Aristocrat.
In October last year, a court in Nevada, in the U.S., granted Aristocrat a “renewed motion to obtain discovery of math models” for certain hold and spin games released by Light & Wonder since 2021.
