Published on: October 4, 2024, 04:32h.
Last updated on: October 4, 2024, 04:32h.
Shares of Light & Wonder (NASDAQ: LNW) surged 4.39% on above-average volume Friday after CEO Matt Wilson provided an update to investors concerning the company’s actions regarding the “Dragon Train” lawsuit.
In late September, Light & Wonder was issued a preliminary injunction by the US District Court for the District of Nevada, preventing further leasing and sales of “Dragon Train” slots. The court ruled that Light & Wonder likely stole trade secrets from Aristocrat Technologies’ “Dragon Link” games to develop “Dragon Train.”
Wilson, in a video on the company’s investor relations website, stated that they are collaborating with North American clients to retrieve “Dragon Train” machines and rebrand them with different titles offered by the gaming device firm.
We are dedicated to complying with the court’s order by swiftly removing these games from circulation,” he said. “We are working closely with clients to implement the transition to new games promptly, effectively removing Dragon Train from our inventory, which is our main focus.”
Wilson disclosed that Light & Wonder currently has 33,000 leased gaming machines in North America, with “Dragon Train” products making up a small percentage of this fleet.
‘Dragon Train’ Australia Update
In North America, Light & Wonder is endeavoring to convert “Dragon Train” slots into popular titles like “Dancing Drums,” “Invaders,” and “Wizard of Oz,” among others.
In Australia (Aristocrat’s home country), Light & Wonder ceased sales of “Dragon Train” devices, as Wilson discussed the potential conversion to “Huff N’ Puff,” “Lion Link,” and “Shenlong Unleashed” machines, which were recently showcased at the Asian Gaming Expo.
“We are determined to capitalize on this opportunity in the fourth quarter and beyond as we introduce new versions of our products,” stated Wilson in the video.
The Dragon series of games by Light & Wonder received positive feedback from Australian players, leading some analysts to believe that the new line could boost EBITDA. Aristocrat is pursuing legal action against Light & Wonder in Australia, and earlier this year secured presuit discovery against the company.
‘Dragon Train 2.0’ Plans
Wilson also mentioned that Light & Wonder is actively developing “Dragon Train 2.0” slot machines to adhere to the court’s ruling, expecting the game to become a key component of their product lineup for years to come.
“We are currently focusing on this with high priority,” the CEO emphasized. “We are expediting the development process to launch it soon.”
Analysts have highlighted that “Dragon Train” only represented a small fraction of Light & Wonder’s EBITDA. Wilson pointed out that it’s just one of many successful franchises the company has introduced, emphasizing Light & Wonder’s substantial market share in North America, excluding the impact of “Dragon Train.”