Aristocrat, L&W Settle Global IP Case with $127.5M Payment
Aristocrat Leisure and Light & Wonder have reached a settlement that brings an end to high-profile intellectual property litigation spanning Australia and the United States, closing a case that has drawn close attention across the global gaming supply chain.
The dispute stemmed from allegations that Light & Wonder used confidential Aristocrat game mathematics and copyrighted material in the development of its Dragon Train and Jewel of the Dragon slot titles. Aristocrat argued that the games were built using proprietary trade secrets tied to its hold-and-spin mechanics, without equivalent development investment.
Under the settlement, Light & Wonder will pay US$127.5 million in compensation to Aristocrat. The company has also agreed to permanently cease the global commercialisation of both Dragon Train and Jewel of the Dragon and to make best efforts to remove existing installations from casino floors worldwide.
Acknowledgement of IP Use and Game Withdrawal
As part of the agreement, Light & Wonder acknowledged that certain Aristocrat math information was used during development of the disputed games. The company committed to ending any further use of that information and to permanently destroy documents containing the relevant math models and copyrighted works.
The settlement also introduces confidential procedures designed to identify and resolve any remaining issues related to the use of Aristocrat math across a limited number of existing and in-development Light & Wonder hold-and-spin titles. These procedures follow earlier court orders requiring Light & Wonder to produce math models during litigation in the United States.
All legal claims brought by Aristocrat in both Australia and the US will now be dismissed, formally concluding the case.
Industry Focus on Game Design Protection
In statements following the settlement, both companies pointed to the growing importance of protecting underlying game mathematics and design assets. Aristocrat described the outcome as reinforcing the need to safeguard intellectual property in an industry where innovation relies heavily on proprietary mechanics and confidential development work.
Light & Wonder said the issue arose from the actions of a former employee who acted without the company’s knowledge and in breach of internal policies. The company stated that it has since strengthened internal processes to prevent similar issues and ensure compliance with intellectual property standards.
The resolution allows both suppliers to move forward without ongoing legal distraction, while preserving customer relationships and development roadmaps.
Broader Implications for the Gaming Supply Chain
As reviewed by iGaming News Today, the settlement highlights how closely game math, source models, and design frameworks are now scrutinised as competition intensifies among global slot suppliers. Hold-and-spin mechanics, in particular, have become central to commercial performance, increasing the stakes around ownership and originality.
The case also serves as a reminder that intellectual property disputes in gaming extend beyond visual similarity, focusing increasingly on the unseen mathematical structures that drive gameplay and revenue.
With the litigation now resolved, attention is expected to shift back to product pipelines and innovation strategies, but the outcome is likely to influence how suppliers manage development controls, employee transitions, and IP governance across jurisdictions.
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