Light & Wonder, the renowned gaming company, is currently in the process of revamping its beloved Dragon Train game following a recent ruling from a U.S. District Court that favored Aristocrat Technologies in an intellectual property dispute. The court’s injunction has barred Light & Wonder from distributing the current version of Dragon Train due to alleged intellectual property violations related to the game’s mathematical components.
In response to this development, Matt Wilson, the CEO of Light & Wonder, released a video statement addressing the situation. Wilson confirmed that the company is actively replacing the Dragon Train machines installed in various locations, with a majority of the affected 2,200 units being located in North America. Despite these challenges, Light & Wonder is working closely with its customers to provide alternative gaming options and ensure a smooth transition. Wilson assured stakeholders that these changes would not significantly impact the company’s earnings targets, which are set at an ambitious US$1.4 billion in adjusted EBITDA by 2025.
Despite the setback, Wilson remains optimistic about the future of the Dragon Train franchise. He announced plans to develop a new version of the game, citing the court ruling’s focus on specific mathematical components rather than the core gameplay and features. Wilson expressed the company’s dedication to creating a compliant version of Dragon Train, emphasizing that this project is a top priority.
In the aftermath of the legal dispute, Light & Wonder’s shares initially saw a decline following the injunction but quickly rebounded with a 5.7% gain in ASX trading after the announcement of the new version of Dragon Train. Industry analysts have noted that the legal issues surrounding the game represent a small fraction of Light & Wonder’s overall business. Barry Jonas, an analyst at Truist Securities, mentioned in an investor note that the impact of the lawsuit is largely limited to Dragon Train and its designer, who has since departed from the company.
While the court’s decision has affected Light & Wonder’s ability to sell Dragon Train in the U.S. and Australia, the company is steadfast in its commitment to supporting its customers. Light & Wonder is offering alternative gaming options such as Ultimate Fire Link and Huff and Puff as replacements for Dragon Train, ensuring that customers can still access high-quality gaming experiences.
Looking ahead, Light & Wonder remains focused on its future plans. Despite the challenges posed by the legal dispute, the company is determined to overcome these obstacles and continue providing exceptional gaming experiences for its loyal customers. The development of a new version of Dragon Train signals Light & Wonder’s resilience and adaptability in the face of adversity.
