Published on: January 12, 2026, at 04:51h.
Updated on: January 12, 2026, at 04:52h.
- Light & Wonder agrees to a $127.5 million settlement with Aristocrat.
- Company admits certain Aristocrat mathematical models were utilized in disputed games.
- Titles from the Dragon Train series removed globally; L&W stock surges on ASX.
Light & Wonder (ASX/NASDAQ: LNW), a leading global gaming provider, has reached a settlement with rival casino technology giant Aristocrat Ltd. (ASX: ALL) for US$127.5 million, resolving a protracted intellectual-property conflict, as disclosed in a filing with the Australian Securities Exchange (ASX) on Monday.
Aristocrat initiated legal action against Light & Wonder in March 2024, claiming that the U.S.-based company’s Dragon Train and Jewel of the Dragon slot games were created utilizing its proprietary trade secrets, including key mathematical models linked to its Dragon Link series.
Under the terms of the settlement, Light & Wonder will provide compensation to Aristocrat for misappropriation and infringement and will acknowledge the use of specific Aristocrat mathematical data in the creation of the contested games.
“Light & Wonder has committed to permanently halt the commercialization of these games worldwide and will endeavor to remove existing installations,” a joint statement indicated.
“Light & Wonder has pledged to cease all further use of Aristocrat’s mathematical information and will permanently destroy all documents related to that information.”
Stock Prices Surge
The two entities also established confidential protocols to address any future concerns involving Aristocrat’s mathematical information relating to other Light & Wonder “hold and spin” products, whether currently available or in development. This includes games for which Light & Wonder had been required to generate mathematical models in ongoing U.S. litigation.
The resolution brings closure to lawsuits in both Nevada and Sydney, garnering positive reactions from Light & Wonder investors, who had been apprehensive about the prospect of a lengthy trial that could lead to extensive injunctions, increased damages, and greater disruptions within the company’s game offerings. The stock saw an approximate 16% increase on the ASX on Monday.
“This issue arose when a former employee improperly utilized certain Aristocrat mathematical models without our knowledge and in direct violation of our policies,” stated Light & Wonder CEO Matt Wilson.
“This agreement safeguards the interests of our customers, employees, and shareholders, enabling us to refocus on creating the content our clients expect without distractions or interruptions,” he continued.
Initial Defense
Initially, Light & Wonder characterized Aristocrat’s claims as “groundless” and attempted to have the case dismissed, asserting that Aristocrat’s mathematical models were readily available for purchase on platforms like eBay and Facebook, thus disqualifying them as trade secrets.
In September 2024, the U.S. District Court for the District of Nevada issued a preliminary injunction in favor of Aristocrat, determining that it was “extremely likely” that Light & Wonder had unlawfully appropriated intellectual property.