Light & Wonder initiates removing 2200 Dragon-Train-themed slot machines in response to copyright issue

Light & Wonder CEO and President Matt Wilson has addressed the dispute with Aristocrat Technologies over its Dragon Train game, confirming an alternative product is in the works and that a designer for the original title has left the business. 

The District Court of Nevada last month ordered Light & Wonder to stop providing Dragon Train in response to an infringement case filed by Aristocrat alleging L&W of misappropriating its intellectual property, copying game mechanics and gameplay, and copyright infringement.

Aristocrat submitted its filing in February, arguing Dragon Train has several similarities to its Dragon Link series. It flagged concerns over the role former Aristocrat executives, now working at Light & Wonder, had in the game’s development. Light & Wonder launched Dragon Train in the US in March, while Dragon Link dates back to 2017.

Speaking in a video statement, Wilson sought to address investor concerns over the case. L&W is developing a new version of the game: Dragon Train 2.0, which Wilson said will remain part of the supplier’s offering for many years. He said the next iteration of the game would be in compliance with the court’s order, although he did not provide a specific timeline for the game’s relaunch.

“We’re working actively on this right now and working quickly to get this out as high priority. We expect Dragon Train to continue to be a franchise in our portfolio for many years to come,” Wilson noted.

He also said that the changes would be minimal as the court’s order only relates to a small portion of the overall game.

“It is just certain aspects of the map that are being challenged. There’s lot of elements in this game that have made it successful such as the art, sounds, animation, and brand. Those things not affected by the order.”

Wilson also confirmed L&W has been in contact with customers about removing the existing Dragon Train game from its offering. This covers both the North America and Australia markets. L&W is offering other games from its portfolio to make up for the loss of Dragon Train on client units.

“We have approximately 33,000 units installed in North America,” Wilson said. “Dragon Train represented roughly a mid-single-digit percentage of that install base or around 2,200 units. We are working diligently with our customers to convert those games out in compliance with the judge’s order.

The case has not appeared to impact L&W’s reputation among clients, as Wilson notes they have not received any requests to remove gaming units, following the injunction. “Taking Dragon Train out of the fleet is our immediate priority,” he added. As for Australia, Wilson said Dragon Train has been ‘hugely successful’ in the country but is now no longer available.

“New games are expected to fill our sales pipeline and we want to make sure we capture as much of that opportunity in Q4 and beyond as we start to scale the full versions of these products.”

He reiterated the group’s desire to comply with the judge’s order, as well as remain on track for long-term goals, including a 2025 consolidated adjusted EBITDA target of $1.40 billion. Wilson also addressed reports this week that the designer of Dragon Train, a former Aristocrat employee, had left L&W.

“Although we don’t discuss the specifics of personal matters, I can confirm the designer was terminated earlier this week,” he said. Wilson closed the video by reiterating his optimism for the future.

“In summary, I remain really excited about the future at Light & Wonder,” he said. “This is an isolated incident that we are mitigating effectively. “The team is galvanized. We are going to continue the momentum you have seen over the past five years.”