Aristocrat, Light & Wonder Settle Dragon Train Slot Lawsuit

^{Light & Wonder logo displayed above a booth at the G2E gaming trade show. The company has agreed to pay Aristocrat over use of their trade secrets in developing two slot machines. (Photo: Vanessa Alves-Johnson / Casinos.com)}

Aristocrat Leisure Limited and Light & Wonder announced Monday that they have reached a settlement resolving outstanding litigation over the development of Light & Wonder’s Dragon Train slot machine.

Aristocrat was suing Light & Wonder in both Australia and the United States over the development of the slot machine, claiming that Light & Wonder had used Aristocrat's trade secrets in developing both Dragon Train and Jewel of the Dragon. 

Settlement Acknowledges Use of Aristocrat ‘Math Information’

In the settlement, Light & Wonder acknowledged that it had used “math information” from Aristocrat in the development of the two slots. The company has agreed permanently to stop its commercialization of both games globally and attempt to remove the machines where they have already been installed. 

Light & Wonder also will pay Aristocrat $127.5 million in compensation for misappropriation and infringement of intellectual property. In return, Aristocrat will dismiss its claims against Light & Wonder in both jurisdictions. The companies have also agreed to confidential procedures that will allow the two to identify and work out further issues involving the use of Aristocrat math in Light & Wonder slots, specifically “hold and spin” games. 

“Aristocrat welcomes fair competition but will always robustly defend and enforce its intellectual property rights,” Aristocrat CEO and Managing Director Trevor Croker said in a statement. “As an ideas and innovation company our intellectual property is vital to our ongoing success. We are committed to protecting the great work of our dedicated creative and technical teams.”

Light & Wonder also acknowledged the importance of respecting intellectual property rights, though it maintained that the problem had been resolved by the company.

“This matter arose when a former employee inappropriately used certain Aristocrat math without our knowledge and in direct violation of our policies,” Light & Wonder CEO Matt Wilson said in a statement. “Upon discovery, we took immediate action and have since implemented strengthened processes aimed at preventing similar issues in the future. This settlement protects the interests of our customers, employees, and shareholders, and allows us to continue our focus on developing and delivering the market-leading content our customers expect – without distraction or disruption.”

Light & Wonder Shares Rebound as Legal Cloud Lift

Light & Wonder shareholders showed their relief with the settlement on Monday, as shares in the company rose more than 25% on the Australian Securities Exchange following the news.

The settlement ends a legal battle that intensified in September 2024, after a US District Court in Nevada ordered Light & Wonder to stop monetizing its Dragon Train game series. The ruling followed a preliminary injunction after a mathematician with Light & Wonder – who had previously worked with Aristocrat – was found in possession of a spreadsheet that matched one created by Aristocrat in 2013. 

The legal battle dragged on in 2025 as the two sides debated how much information Light & Wonder had to share with Aristocrat in the game development process.

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