Light & Wonder has secured a procedural victory in its IP dispute with Aristocrat over alleged trade secret misappropriation.
Light & Wonder has secured a critical procedural victory in its high-profile intellectual property dispute with Aristocrat, over alleged trade secret misappropriation tied to the development of the Dragon Train slot series.
A ruling handed down by the US District Court for the District of Nevada has found that Light & Wonder will not be required to disclose proprietary mathematical models underpinning its Hold & Spin game features.
In contrast, the court determined that Aristocrat must more precisely identify and articulate the specific trade secrets it seeks to protect as the case progresses.
The ruling marks a turning point in a legal confrontation that has drawn attention throughout the gaming industry.
The court also mandated that both parties confer over the implications of this decision in advance of a trial scheduled for 2026.
The order reinforces the onus on Aristocrat to clearly delineate the scope of its intellectual property claims, rather than relying on broad assertions.
Following the court’s decision, Light & Wonder’s stock experienced a notable uptick.
Its US-listed shares rose by approximately 9.5% following the decision, closing yesterday (25 June) at $94.48. Similarly, its secondary listing on the Australian Securities Exchange (ASX) surged nearly 13.5% by market close.
The rebound follows a recent drop in the company’s share price, as investors faced the possibility of a rumoured additional lawsuit from Aristocrat targeting Light & Wonder.
Litigation continues to move forward
The broader legal dispute originated when Aristocrat was granted a preliminary injunction in 2023 against Light & Wonder, related to its Dragon Train games.
At the time, the Nevada court stated that Aristocrat was “extremely likely to succeed” in proving that Light & Wonder had misappropriated trade secrets during the development of the Dragon Train titles.
The preliminary injunction served to block commercial activities related to those games pending further judicial review.
In response to the injunction and related concerns, Light & Wonder initiated an internal review earlier this year, examining all of its Hold & Spin titles released since 2015.
The review sought to identify any instances in which Aristocrat’s mathematical configurations or models may have been inappropriately used.
According to Light & Wonder, the investigation did not reveal any such infringements, suggesting that the concerns raised may be limited in scope to the Dragon Train and Jewel of the Dragon series.
The company also voluntarily ceased commercialisation of Jewel of the Dragon and decided against releasing a new, unnamed title that had raised similar red flags concerning potential IP overlap.
These preemptive actions appear to be part of a broader risk mitigation strategy, aimed at avoiding further legal entanglement and reputational damage.
While Light & Wonder’s latest procedural win may alleviate some immediate legal pressure, the case likely has a long way to go before reaching its conclusion.