Deputy Editor
The long-running Dragon Train lawsuit between top casino game manufacturers Aristocrat and Light & Wonder has reached a sudden conclusion, as the sides have agreed to settle. Light & Wonder will pay Aristocrat AU$190 million (~$127 million) as compensation for “misappropriation and infringement of its intellectual property.”
The dispute stemmed from an employee who worked for both companies, Emma Charles. Charles moved on from Aristocrat and took a job with Light & Wonder. Discovery in the case revealed compelling evidence that she had used math she had originally developed for Aristocrat games in her subsequent job at Light & Wonder. Initially, the focus of the case was on Dragon Train — a hit Light & Wonder title bearing a strong resemblance to Aristocrat’s Dragon Link. However, other games in Light & Wonder’s catalog eventually came under scrutiny as well.
L&W removed Dragon Train from the market, but Aristocrat contended that all games using the “hold and spin” mechanic developed after Charles became an employee should be deemed suspicious. The companies became bogged down in a court battle that included millions of pages of documents.
Now, they’ve agreed to settle their differences rather than continue in the costly litigation. The case had already dragged on for years, dating to February 2024, and the next steps weren’t scheduled until the second half of 2026.
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Light & Wonder Admits Infringement
In a joint statement released by both companies on Sunday, L&W admitted to culpability in the matter of using stolen math.
Light & Wonder acknowledges that certain Aristocrat math information was used in connection with the development of both Dragon Train and Jewel of the Dragon. Light & Wonder has agreed to permanently cease commercialization of these games globally and to make best efforts to remove existing installations.
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.
Light & Wonder CEO Matt Wilson said the company is pleased to move forward without the high-profile case looming any further.
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. Upon discovery, we took immediate action and have since implemented strengthened processes aimed at preventing similar issues in the future.
News of the settlement buoyed investor confidence in Light & Wonder. The company’s stock immediately rocketed up about 20%, rising from approximately AU$155 to AU$185. It has since settled at about AU$180.
Light & Wonder had experienced a similarly sized drop upon news of Dragon Train’s removal from the market in September 2024. Based on the company’s valuation on NASDAQ at the time, the preliminary injunction wiped about $1.3 billion in value off the market.
Investors were likely spooked by uncertainty over how much of Light and Wonder’s catalog could ultimately have been pulled from the market as a result of the litigation. Now that the scope of the damage is clear, the stock has recovered.
Image credit: Flazingo Photos/Flickr (license)
