L&W Halts Jewel of the Dragon Slot as IP Lawsuit with Aristocrat Continues
Light & Wonder has announced it will cease the commercialization of its "Jewel of the Dragon" slot game amid ongoing litigation with Aristocrat Technologies Inc. in the US District Court of Nevada. The move follows a recent development in the case, in which Aristocrat expanded its claims to include allegations of trade secret misappropriation linked to the Jewel of the Dragon title.
LISTEN TO THIS ARTICLE:The litigation between the two gaming firms began in March 2024, when Aristocrat initiated legal action in the US concerning L&W's Dragon-themed slot machine titles. In September of the same year, a preliminary injunction was issued against L&W regarding its Dragon Train game, based on claims that it infringed on Aristocrat's intellectual property. In March, Aristocrat filed a second amended complaint, introducing new claims of trade secret misappropriation specifically targeting Jewel of the Dragon.
Related: Australian Court Sides with Light & Wonder in Aristocrat Copyright DisputeIn response to the expanded legal complaint, L&W affirmed its intent to formally reply by April 11. The company clarified that this was the first time a trade secret claim had been applied to Jewel of the Dragon and that it was acting to ensure minimal impact on its customers. It emphasized that the action to stop distributing the game and offer replacements was taken proactively, to avoid customer confusion during the ongoing litigation.
L&W underscored that the decision was supported by its prior success in replacing Dragon Train machines and the solid performance of its wider product portfolio. The company believes these factors provide confidence that its course of action is in the best interest of its clientele as it continues to develop new games. It also noted that Jewel of the Dragon, at around 150 units, had a relatively minor market presence, comprising less than 1% of its total slot footprint in North America.
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PAR Sheets Become Focus of Battle
The company disclosed that certain Aristocrat PAR sheets from 2015 had been identified as having been accessible to some members of the team involved in the development of the Jewel of the Dragon slot. These documents are commonly used by gaming companies to detail the performance settings and payout characteristics of slot machines. L&W explained that these documents are routinely distributed to customers to comply with regulatory requirements.
Given the wide circulation of such materials, the company stated that it is not uncommon for PAR sheets from one manufacturer to be found in the possession of another. However, in light of the discovery of the historical Aristocrat documents, L&W is expanding its internal review to include all of the hold-and-spin games it released before the middle of 2021. The firm currently maintains that it has no reason to suspect that the extended review will uncover similar issues.
L&W intends to provide an update on the results of this expanded review during its first-quarter earnings report for 2025. It also acknowledged that Aristocrat had introduced additional concerns in the latest version of the legal complaint, which it plans to vigorously contest in court.
The updated complaint from Aristocrat argues that even replacement games for Dragon Train, including the social game Dragon Train Grand Central, could benefit from trade secret misappropriation, regardless of whether they incorporate any protected information. L&W responded by affirming its commitment to transparency with both the courts and Aristocrat. It stated that it had already shared the mathematical model for Dragon Train Grand Central in advance of its launch, and Aristocrat had not raised any objections regarding it.
Additionally, the company expressed confidence that its upcoming land-based Dragon Train replacement game, currently in development, will also be free from legal challenge. L&W previously indicated in October 2024 that it was working to develop a new version of the Dragon Train title. Despite the legal hurdles and product withdrawal, the company emphasized that the decision to discontinue Jewel of the Dragon shouldn't have a significant impact on its overall revenue.
L&W reaffirmed its commitment to achieving its financial goals for 2025, including a targeted consolidated adjusted EBITDA of $1.4 billion and adjusted net profit after tax and before amortization of $565-$635 million. The company maintains that its strategic decisions are aligned with delivering on these projections while ensuring compliance with legal standards and maintaining customer trust.
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