Light & Wonder pulls Jewel of the Dragon as legal dispute escalates

Light & Wonder has announced the voluntary withdrawal of its Jewel of the Dragon slot machine from casino floors, following an amended complaint filed by Aristocrat Leisure on March 14, which expanded the scope of a legal dispute in the U.S. District Court of Nevada to include a new trade secret misappropriation claim related to the game.

The decision was made to minimize confusion and avoid disruptions for customers while litigation continues, the company said. Aristocrat’s original lawsuit, filed in early 2024, had centered on allegations of trade secret misappropriation related to a separate game — Dragon Train.

The amended complaint now accuses Light & Wonder of extending the alleged misappropriation to replacement and social game variants, including Dragon Train Grand Central, and of incorporating proprietary elements into Jewel of the Dragon.

“Our decision to stop commercializing and offer to remove Jewel of the Dragon is not expected to have a material effect on our revenue,” said Light & Wonder CEO Matt Wilson during an investor call.

Light & Wonder CEO Matt Wilson

Wilson stated that the game represents less than 1% of the company’s premium installed base in North America, with only 150 leased units in operation. CFO Oliver Chow added that the financial impact of the decision would be immaterial, stating the game generated less than $10 million in revenue.

In its filing, Aristocrat alleged that even if Dragon Train Grand Central does not directly use its trade secrets, it could still benefit from the misappropriation. Light & Wonder responded by noting its internal controls, stating that the math for Grand Central had been shared with Aristocrat prior to launch and has not been subject to a legal claim.

The company also revealed that PAR sheets dating back to 2015, technical documents outlining game payout mechanics, may have been available to developers working on Jewel of the Dragon. These documents, while confidential in nature, are often distributed to customers for regulatory purposes and, according to Wilson, commonly circulate within the industry.

Light & Wonder conducted an internal review following a previous court ruling in September 2024 that resulted in a global injunction on Dragon Train. That review led to the termination of game designer Emma Charles, a former Aristocrat employee accused of incorporating proprietary math into Dragon Train.

The company has since expanded its review to include all hold and spin games released prior to mid-2021 and expects to provide updates during its Q1 2025 results briefing.

Wilson noted that an unreleased game mentioned in Aristocrat’s complaint had already been pulled and destroyed as a precaution, following internal review. He also stated that no other games in Light & Wonder’s catalog have been challenged by competitors.

Despite the ongoing litigation and its public nature, Wilson insisted the issue is limited in scope and not reflective of the company’s operations. This is "a legacy issue,” he said. "The team deeply understands where the bright line is.” 

Light & Wonder also touched upon its 2025 financial targets, projecting $1.4 billion in adjusted EBITDA and $565–$635 million in adjusted net profit after tax and amortization (NPATA). The company stated that the Jewel of the Dragon withdrawal would not materially impact these figures or its overall growth trajectory.