Las Vegas slot machine manufacturer to pay $127.5M in settlement over ‘cheap knockoff’

Las Vegas-based Light & Wonder and Aristocrat Leisure Ltd. have reached a $127.5 million settlement in an intellectual property dispute stemming from Aristocrat’s claim that Light & Wonder produced “a cheap knockoff” of its Dragon Link and Lightning Link slot machine games. The lawsuit, filed in February 2024, alleged that Light & Wonder used Aristocrat’s math information in developing its Dragon Train and Jewel of the Dragon games. As part of the settlement, Light & Wonder will remove these games from the market and acknowledge the use of Aristocrat’s intellectual property.

Light & Wonder CEO Matt Wilson stated the issue arose from a former employee’s inappropriate use of Aristocrat’s math and that the company has since strengthened its processes to prevent similar incidents. Aristocrat CEO Trevor Croker emphasized the importance of protecting the company’s intellectual property and welcomed the outcome, which includes significant financial compensation.

The dispute involved former Aristocrat game developers who joined Light & Wonder and worked on the contested games. A preliminary injunction was secured in September 2024, recognizing Light & Wonder’s use of Aristocrat’s trade secrets. Light & Wonder has agreed to destroy all related documents and will not further utilize the disputed information, and while the company’s stock price initially fell, they claim no long-term damage due to customers replacing the removed games with other Light & Wonder products.

(Source：Las-vegas Review Journal)