Aristocrat and Light & Wonder Reach $127.5 Million Settlement Over Dragon Train Dispute
Light & Wonder has acknowledged that it utilized information obtained from Aristocrat during the development of its Dragon Train slot game. settlement
In a recent settlement, Aristocrat Leisure and Light & Wonder agreed to resolve their ongoing legal dispute concerning the disputed Dragon Train title. Light & Wonder will pay a settlement of $127.5 million, addressing claims of intellectual property misappropriation and infringement.
The core of Aristocrat’s argument centered on the similarities between Dragon Train and its own ‘Dragon Link’ series, which debuted in 2017. In contrast, Dragon Train was only launched in March 2024.
Aristocrat accused Light & Wonder of copying game mechanics and gameplay features, infringing on copyrights, and misappropriating its intellectual property. The company also raised concerns about the involvement of some former executives in the game’s development.
An initial court ruling in September favored Aristocrat, effectively halting the commercialization of Dragon Train by Light & Wonder. The case then proceeded through legal channels in both Australia and the United States. Light & Wonder expressed its intention to appeal the decision, stating it “respectfully disagree[d]” with the ruling.
In its official statement, Light & Wonder affirmed that it would continue to “vigorously” defend itself against Aristocrat’s claims, including presenting its case before a jury at trial.
Financially, Dragon Train was estimated to contribute less than 5% to Light & Wonder’s projected full-year 2025 adjusted EBITDA, which was forecasted between $1.43 billion and $1.47 billion.
As part of the settlement, Light & Wonder admitted that it had used certain information obtained from Aristocrat in the development of both Dragon Train and another game, Jewel of the Dragon. The company agreed to stop the global commercialization of these titles and to make best efforts to remove existing installations.
Furthermore, Light & Wonder committed not to further utilize the specific Aristocrat information or copyrighted works and agreed to permanently destroy all related documents.
Both parties also agreed to maintain confidentiality regarding procedures for identifying and resolving any issues related to the use of Aristocrat’s mathematical data in current and future Light & Wonder games. They recognized the “significant investment and innovation” involved in game development and emphasized their respect for intellectual property rights to promote fair competition.
The claims filed by Aristocrat against Light & Wonder will now be dismissed in both the US and Australia.
Trevor Croker, Aristocrat’s CEO and managing director, welcomed the resolution. He emphasized that while “fair” competition is beneficial, the company is committed to vigorously protecting its intellectual property rights.
“Our intellectual property is vital to our ongoing success,” Croker stated. “We are dedicated to safeguarding the innovative work of our talented creative and technical teams.”
He described the settlement as a “positive outcome,” highlighting the substantial financial compensation and the company’s decisive actions to defend its valuable assets. Notably, Aristocrat secured a preliminary injunction in September 2024, with the court recognizing that Light & Wonder had developed Dragon Train by using Aristocrat’s trade secrets without equivalent investment of time and resources.
Light & Wonder CEO Matt Wilson also expressed satisfaction with the resolution. He noted the company’s commitment to conducting business ethically, respecting competitors’ intellectual property, and protecting its own assets.
“This situation arose when a former employee improperly used certain Aristocrat intellectual property without our knowledge and in direct violation of our policies,” Wilson explained. “Once discovered, we took immediate steps and have implemented stronger processes to prevent similar issues in the future.”
Wilson added that the settlement safeguards the interests of customers, employees, and shareholders, allowing the company to focus on developing leading content without distraction.
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The high-profile case between Aristocrat and Light & Wonder underscores a rising trend in intellectual property disputes within the gaming industry. Similar conflicts are emerging, such as the ongoing legal battle between game developer Spribe and Georgian studio Aviator LLC over imagery and trademarks. Last year, Spribe secured an initial injunction to prevent Aviator LLC from producing a copycat crash game. Although Aviator sought an appeal, it was ultimately dismissed, with the court criticizing its conduct.
Joel Vertes, a partner and co-head of intellectual property at CMS in London, recently told iGB that the surge in IP disputes reflects the high value attributed to gaming development. He explained that in Europe, game mechanics are challenging to protect directly. Instead, rights are often bundled—covering brands, source code copyrights, and design rights.
“Why wouldn’t you enforce your IP if you’ve filed a patent on certain mechanics or registered designs for your graphic interface?” Vertes questioned, emphasizing the strategic use of intellectual property rights in the industry.
