The Federal Court of Australia has ruled against Aristocrat Leisure Ltd’s request for an interlocutory injunction aimed at preventing Light & Wonder’s Dragon Train slot machines from being available in the Australian market. Issued by Justice Stephen Burley on February 7, the court’s decision allows the game to remain on gaming floors across the country. However, the court has restricted disclosure of the judgment’s reasoning until further notice.

Financial analysts have noted that the ruling alleviates investor concerns regarding previously sold Dragon Train machines. According to banking group Macquarie, this decision confirms that Light & Wonder’s existing customers do not need to take any action concerning their gaming floors. Reports indicate that approximately 10,000 Dragon Train units are currently installed across Australia.

Contrasting Decisions in Australia and the U.S.

While the Australian court rejected Aristocrat’s injunction request, a different outcome was reached in the United States. In September, the U.S. District Court for the District of Nevada granted Aristocrat a preliminary injunction against Light & Wonder. That ruling temporarily halted the sale, leasing, and distribution of Dragon Train in the U.S., with the court finding that Aristocrat was “extremely likely to succeed” in proving Light & Wonder had misappropriated its trade secrets in developing the game.

Aristocrat’s lawsuit, initially filed in March 2024, accuses Light & Wonder of infringing on its intellectual property, citing similarities between Dragon Train and Aristocrat’s Dragon Link series. The allegations include claims of copied game mechanics, audio-visual elements, and deceptive trade practices. Additionally, Aristocrat has pointed to the presence of several former employees in senior roles at Light & Wonder, particularly two designers allegedly involved in the development of Dragon Train.

Industry Response and Light & Wonder’s Next Steps

Following the Australian court’s ruling, Light & Wonder’s stock prices saw a notable increase. Shares on NASDAQ surged by approximately 11%, while ASX-listed shares climbed 7.5%, reflecting market confidence in the decision. Analysts have also suggested that this outcome will allow Light & Wonder to maintain its focus on its 2025 content pipeline without immediate legal disruptions in Australia.

In response to the Nevada court’s ruling, Light & Wonder had already announced plans to release an updated version of the game, Dragon Train 2.0, designed to address concerns over intellectual property.

Aristocrat has acknowledged the Australian court’s decision and stated that it will review the judgment once it is publicly available. A company spokesperson cited by Inside Asian Gaming confirmed that Aristocrat remains committed to pursuing its case against Light & Wonder both in Australia and the United States and will seek all appropriate legal remedies to protect its intellectual property.