Aristocrat and Light & Wonder Settle Global Litigation
Aristocrat Leisure Limited and Light & Wonder (LNW) have agreed to settle their pending litigation in Australia and the United States in relation to the disputes over Light & Wonder's Dragon Train and Jewel of the Dragon slot machine titles, which Aristocrat claimed were developed using its proprietary intellectual property.
Settlement Terms
Key terms confirmed in the joint statement include:
- Financial Compensation: LNW will pay Aristocrat $127.5 million in relation to the claims for misappropriation and infringement of intellectual property.
- Acknowledgement of Use: LNW acknowledged that “certain Aristocrat math information” was used in developing Dragon Train and Jewel of the Dragon.
- Commercial Changes: LNW will permanently cease commercialisation of both disputed games globally. It will also make “best efforts” to remove existing installations.
- Future Use Restrictions: LNW has agreed not to use the disputed Aristocrat math or copyright materials further. It will destroy all documents reflecting that information.
- Confidential Review Process: The parties have established confidential procedures to address any use of Aristocrat math across existing or development-stage LNW titles.
- Dismissal of Claims: All claims by Aristocrat in both jurisdictions will be dismissed following the settlement.
Aristocrat CEO and Managing Director, Trevor Croker, welcomed the “positive outcome” that preserves the company’s intangible assets. Meanwhile, Light & Wonder CEO Matt Wilson, pleased with the resolution of the dispute, emphasized the strengthening of internal processes to prevent future disputes.
Background on the Dispute
The litigation dates back to early 2024, when Aristocrat filed suit in the U.S. District Court for the District of Nevada and in Australian courts.
The plaintiff asserted that LNW misused confidential math models, rules, and design logic from Aristocrat’s Dragon Link series. Aristocrat’s complaint later expanded to include Jewel of the Dragon and other “hold-and-spin” style titles.
A key figure in the litigation was Emma Charles, a former Aristocrat employee. She was part of the design team on LNW’s Dragon Train. Aristocrat alleged that she used proprietary game mathematics from Dragon Link. In October 2024, LNW said it had terminated Charles.
Key Developments
Over the course of 2024 and 2025, the legal battle produced several notable developments and rulings:
- Preliminary Injunction: In September 2024, the Nevada court granted a preliminary injunction that effectively halted further sales and leases of Dragon Train in the U.S. It found that Aristocrat was “extremely likely to succeed” on its trade secret claims.
- LNW withdraws Dragon Train: In April 2025, LNW announced it would voluntarily cease commercializing Dragon Train. The move followed Aristocrat’s filing of a second amended complaint that expanded the case to include Jewel of the Dragon.
- Procedural Win for LNW: A June 2025 procedural ruling in Nevada limited disclosure obligations for LNW, finding Aristocrat’s discovery request too broad.
- Math-Model Discovery Orders: In October 2025, the Nevada court reversed its previous June decision. It ordered LNW to provide Aristocrat with “math models” and related design materials for several hold-and-spin games, including Dragon Train.
- Discovery Privilege Disputes: In November 2025, the court ruled that LNW had implicitly waived attorney-client privilege and work-product protection. In December 2025, LNW contested the ruling. It argued that such information should remain protected — even as Aristocrat continued to pursue disclosure.
These pretrial dynamics contributed to sustained investor uncertainty for LNW, with its share price exhibiting volatility tied to litigation milestones.
The End of a Long Dispute
The settlement between Aristocrat and Light & Wonder brings closure to a high-profile global intellectual property dispute that has been ongoing for nearly two years.
With a $127.5 million payout and structural concessions from L&W — including the withdrawal of the disputed games and the destruction of contested materials — Aristocrat achieves both financial compensation and a reaffirmation of its proprietary rights.
For Light & Wonder, the resolution removes ongoing legal distractions and stabilises investor confidence while signaling commitments to improved internal IP protections.
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