Although it appeared the legal dispute between Light & Wonder and Aristocrat was fizzling into its final chapters, the story could unfold further as analysts warn of a potentially similar situation evolving over the supplier’s Jewel of the Dragon title.
The title may well have crossed into similar territory as Dragon Train in terms of prompting backlash from Aristocrat, with Macquarie analysts citing that legal communication has already taken place between the two groups.
The original case centered around the Dragon Train title – with Aristocrat pursuing legal efforts to stop Light & Wonder from being able to profit from the game.
Recently, a request from Aristocrat for an interlocutory injunction was rejected by the court in Australia. As a result of this ruling, the company’s Dragon Train slot machines were able to remain in circulation across Australia.
However, this was in contrast to the decision taken in Nevada during September last year, which saw the granting of an injunction and the subsequent order for Light & Wonder to remove the gaming machines.
Although the decision at the time was celebrated by Aristocrat, who described it as “underscoring the value of intellectual property”, the case is still up in the air with charges yet to be determined or ruled upon.
The impact of the action taken over the Jewel of the Dragon title is unlikely to be as far-reaching as that of the Dragon Train game, however, it’s a case that underpins that the saga may well not be over just yet.
Macquarie analysts emphasised that the move raises “the question of why Aristocrat might be pursuing further legal action towards Jewel of the Dragon when signs point to any potential impact to LNW’s business as de minimis.”
The group added: “We are not going to speculate here, but we think the main takeaway is that LNW’s exposure with Jewel of the Dragon should be significantly lower than with Dragon Train.
“As it stands, our view is that this development does not derail LNW’s path to reaching its $1.4bn 2025 EBITDA target”.
Light & Wonder President and CEO Matt Wilson previously emphasised that the firm is closing in on the creation of Dragon Train 2.0 machines.
He said: “Our intention is to build out Dragon Train 2.0 in compliance with the order and we’re working actively on this right now. It’s a very high priority for us and we’re working quickly to get that out.
“When you think about what’s in question here in this order, it’s really a small portion of the overall game that is Dragon Train, it’s just certain aspects of the maths that are being challenged.
“There are a lot of elements in this game that have made it successful. There’s the Dragon Train secondary Hold and Respin feature, the art, the sounds, the animation and the brand. These things are not affected by the order.”
