Light & Wonder Inc. and Aristocrat Leisure Limited announced that they have reached a settlement of their pending litigation over alleged trade‑secret misappropriation related to Light & Wonder’s “Dragon Train” and “Jewel of the Dragon” games. The settlement, finalized on Monday, January 12, 2026, includes a confidential payment of US$127.5 million from Light & Wonder to Aristocrat and a commitment by Light & Wonder to implement strengthened internal controls to prevent future violations.
The dispute began when Aristocrat obtained a preliminary injunction in September 2024 that barred Light & Wonder from commercializing “Dragon Train.” The injunction was based on a Nevada court finding that Light & Wonder had likely misappropriated Aristocrat’s intellectual property. The litigation was later expanded to include “Jewel of the Dragon,” and Light & Wonder voluntarily ceased its commercialization of that title in response to the amended complaint filed in March 2025.
Under the terms of the settlement, Light & Wonder will permanently discontinue the sale of both games worldwide and will take steps to remove existing installations. The company also agreed to adopt a set of internal controls designed to strengthen its intellectual‑property compliance program, including enhanced training for design teams, segregation of duties in the development process, and regular audits of design documentation.
The settlement removes a major overhang for Light & Wonder, allowing the company to focus on its core portfolio and future product development. Analysts noted that the $127.5 million payment is a manageable cost relative to Light & Wonder’s cash reserves and that the resolution is likely to improve investor confidence. The agreement also eliminates the risk of further injunctions or damages in the United States and Australia.
Light & Wonder CEO Matt Wilson said the company is “pleased to resolve this matter and move forward” and emphasized that the issue stemmed from a former employee’s misuse of proprietary data. Aristocrat CEO Trevor Croker welcomed the outcome, stating that the settlement “protects Aristocrat’s valuable intellectual property and reinforces the importance of safeguarding creative and technical assets.”
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