Light & Wonder wins key court ruling against Aristocrat
Light & Wonder has earned an important win in its ongoing legal dispute with rival Aristocrat over the Dragon Train series. The US District Court for the District of Nevada has ruled that Light & Wonder does not need to reveal the math models behind its Hold & Spin game titles. The court also ordered Aristocrat to clearly explain which trade secrets it wants to protect.
The updated court order means Light & Wonder will not have to share the details of how all its Hold & Spin games work, while Aristocrat must be specific about the trade secrets it believes have been misused.
Light & Wonder vs Aristocrat
The case between Light & Wonder and Aristocrat centres on claims that Light & Wonder’s Dragon Train slot game unlawfully copied parts of Aristocrat’s popular Dragon Link series. Aristocrat has accused its competitor of misusing trade secrets, copyright infringement, and unfair competition.
The court had earlier granted Aristocrat a preliminary injunction, which forced Light & Wonder to stop its Dragon Train games across the US. In April, Light & Wonder announced that it would stop selling its Jewel of the Dragon game and would not release another new game over similar concerns.
Light & Wonder also carried out a full review of all Hold & Spin games launched since 2015. The company said it found no evidence that any of these games had used Aristocrat’s math values.
Following the latest court decision, the two companies have been told to meet and discuss the ruling before a trial in 2026.
Shares rise on positive ruling
The court’s decision sparked a rise in Light & Wonder’s share price. The company’s US shares rose by around 9.5% in morning trading, while shares on the ASX closed up nearly 13.5% on Wednesday.
Jefferies analyst David Katz called the case “background noise” for Light & Wonder and said it was “beside the key point of our [positive] thesis.” Katz added that such intellectual property cases are common in the gaming supplier sector, though this dispute is “a bit more than another day at the office.”
He also noted, “The matter turned out to be somewhat larger than Light & Wonder originally indicated,” pointing to the strong competition between the two firms, as they are the only large-scale game developers globally with many Light & Wonder staff having previously worked at Aristocrat.
Katz said that while Light & Wonder could face financial penalties, these would not change Jefferies’ positive view on the company’s prospects. Jefferies continues to have a Buy rating on both Light & Wonder and Aristocrat.
