Aristocrat Leisure Limited (ASX: ALL) and Light & Wonder (ASX: LNW) have announced a definitive agreement to settle ongoing litigation in Australia and the United States related to the development and launch of the games Dragon Train and Jewel of the Dragon.

Key Details of the Settlement Between Aristocrat and Light & Wonder

While the specific terms of the settlement remain confidential, both companies confirmed the following key points:

Financial compensation: Light & Wonder will pay Aristocrat USD 127.5 million (approximately AUD 190 million) as compensation for the misappropriation and infringement of Aristocrat’s intellectual property.

Acknowledgment of improper use: Light & Wonder acknowledged that certain Aristocrat mathematical information was used in connection with the development of Dragon Train and Jewel of the Dragon.

Global withdrawal of the games: Light & Wonder will permanently cease the commercialization of both games worldwide and will use best efforts to remove existing installations.

Destruction of protected information: The company agreed not to make any further use of Aristocrat’s mathematical information or copyrighted works and to permanently destroy all related documentation.

Additional confidential procedures: The parties agreed on confidential processes to identify and resolve any potential use of Aristocrat math in certain existing or in-development Light & Wonder “hold and spin” games.

Final dismissal of litigation: All claims brought by Aristocrat against Light & Wonder in Australia and the United States will be dismissed.

Protecting Innovation and Intellectual Property in the Gaming Industry

Both companies emphasized the critical importance of protecting intellectual property assets within the gaming industry, particularly the complex and confidential mathematical models that underpin game design and development.

Respect for intellectual property rights is essential to ensuring fair competition and fostering continued innovation across the global gaming sector.

Executive Statements

Trevor Croker, CEO and Managing Director of Aristocrat, stated: “Aristocrat welcomes fair competition but will always robustly defend and enforce its intellectual property rights. As an ideas and innovation company, our intellectual property is vital to our ongoing success. This positive outcome includes significant financial compensation and follows the decisive actions we took to protect Aristocrat’s valuable intellectual property assets, including securing a preliminary injunction in September 2024.”

Meanwhile, Matt Wilson, CEO of Light & Wonder, commented: “Light & Wonder is pleased to resolve this matter and move forward. This issue arose due to the inappropriate actions of a former employee who used certain Aristocrat math without our knowledge and in direct violation of our policies. Upon discovery, we acted immediately and strengthened our internal processes. This settlement protects the interests of our customers, employees, and shareholders, allowing us to remain focused on delivering market-leading content.”