A recent ruling by a federal judge in Las Vegas has put a stop to the sale and distribution of a dragon-themed slot machine created by Light & Wonder, a gaming equipment provider. The decision, which came just before the upcoming Global Gaming Expo (G2E) trade show, was made in response to a trade secrets violation lawsuit filed by Aristocrat Technologies.
Aristocrat claimed that Light & Wonder’s Dragon Train slot machine was a copy of its own Dragon Link and Lightning Link games. The lawsuit alleged that former Aristocrat game designers who had left the company were involved in the development of Dragon Train. As a result of the ruling, Light & Wonder was instructed to cease any further sale or commercialization of Dragon Train.
Following the ruling, Light & Wonder’s stock price plummeted by over 19 percent on the Nasdaq National Market. Despite this setback, Truist Securities gaming analyst Barry Jonas believes that this could present a buying opportunity for investors due to the popularity of the company’s other slot machine titles.
According to Eilers & Krejcik Gaming, Light & Wonder had around 2,000 Dragon Train slot machines installed in casinos across the U.S. and Canada, generating approximately $40 million in annual revenue. The ruling has raised questions about the company’s future game pipeline and whether they will need to alter or delay new releases.
While the removal of Dragon Train games may impact Light & Wonder’s presence at G2E, Todd Eilers of Eilers & Krejcik believes that the company’s strong portfolio of premium games will help offset any losses. Light & Wonder CEO Matt Wilson expressed confidence in the company’s ability to achieve its long-term financial goals despite the legal challenges they are facing.
In response to the ruling, Light & Wonder stated that they plan to appeal the decision and will continue to defend against Aristocrat’s claims. Aristocrat, on the other hand, criticized Light & Wonder for misappropriating trade secrets and emphasized the importance of protecting intellectual property.
The lawsuit highlights the competitive nature of the gaming industry and the significance of intellectual property rights. As the legal battle between Light & Wonder and Aristocrat continues, the outcome will not only impact the two companies involved but also set a precedent for future disputes in the industry.
