Light & Wonder Terminates Dragon Train Designer; Will Release New Version of Slot Game

October 4, 2024 World iGaming & Gambling

Light & Wonder Inc., a prominent gaming technology supplier, is navigating a turbulent period as it confronts legal issues surrounding its slot game Dragon Train. In a recent video statement, CEO and president Matt Wilson disclosed the termination of the game’s designer. “Though we don’t discuss specifics of personnel matters, I can confirm the designer was terminated earlier this week,” Wilson stated, as Light & Wonder develops a new version of Dragon Train amid ongoing litigation with Aristocrat Technologies Inc.

The situation stems from a preliminary injunction granted to Aristocrat by a U.S. District Court in Nevada. This injunction cites alleged misappropriation of trade secrets related to the Dragon Train game, which Light & Wonder launched in Australia in 2023 and introduced to the U.S. market in early March.

It follows Light & Wonder being told it must cease profiting from the popular slot game after its competitor Aristocrat sued it for copyright infringement and trade secret misappropriation, relating to its own Dragon Link offering. The Nevada District Court has ordered the supplier to remove all land-based and online Dragon Train games by October 23, 2024.

In response to the court’s ruling, Wilson noted that Light & Wonder is taking steps to convert around 2,200 Dragon Train units currently deployed in North America to ensure adherence to the judge’s order.

Wilson characterized the legal issue as an “isolated incident” that is being effectively managed. He emphasized the company’s focus on maintaining customer satisfaction during this transition. “We are working diligently with our customers to convert those games out in compliance with the judge’s order,” he was quoted as saying in a report published by GGRAsia. He mentioned that Light & Wonder has not received any removal requests from its clients thus far.

Looking ahead, Wilson expressed optimism about the future of the Dragon Train franchise. He confirmed that Light & Wonder plans to develop a new version, tentatively called “Dragon Train 2.0.” This new iteration aims to comply fully with the legal requirements while preserving the core appeal of the original game. Wilson believes that the franchise will continue to thrive in Light & Wonder’s portfolio in the future, as evidenced by the sustained success of similar gaming titles. “We expect ‘Dragon Train’ will continue to be a franchise in our portfolio for many years to come,” said the CEO and president.

Despite the challenges posed by the ongoing litigation, Light & Wonder remains confident in its overall strategy. Wilson reiterated that the company is on track to achieve its target of $1.4 billion in consolidated earnings before interest, taxation, depreciation, and amortization (EBITDA) for 2025. He pointed out that while Dragon Train represents a mid-single-digit percentage of the company’s presence in North America, Light & Wonder possesses a robust portfolio of alternative games ready to fill any potential gaps left by the game’s removal.

In Australia, where Dragon Train had previously enjoyed success, Light & Wonder has ceased sales following the court’s ruling. Nevertheless, Wilson noted that the company is actively engaging with clients to offer other popular titles, including Lion Link and Shenlong Unleashed, to ensure that their needs are met.

The timing of Wilson’s remarks is particularly relevant as the industry gears up for the upcoming Global Gaming Expo (G2E), scheduled for October 7-10 in Las Vegas. This major trade show provides a platform for industry leaders to discuss trends and innovations, making it crucial for Light & Wonder to clarify its position in light of the ongoing litigation.

As part of the company’s commitment to innovation, the company is allocating $1 billion capital allocation for share buybacks and a focus on developing new products. Wilson emphasized that this approach aims to drive sustainable growth and reinforce Light & Wonder’s position in the competitive gaming market.