Aristocrat Leisure and Light & Wonder have reached a settlement, resolving a legal dispute over patent infringement. Light & Wonder will pay Aristocrat US$127.5 million (AU$190 million) and will permanently cease commercialisation of Dragon Train and Jewel of the Dragon, games which used Aristocrat’s proprietary math. Aristocrat Leisure Limited is a gaming company that designs, develops, and distributes gaming content, platforms, and systems. Light & Wonder is a cross-platform global games company bringing iconic franchises to players across the globe.
According to Jarden analyst Liam Robertson, the settlement eliminates a significant legal and operational issue for both companies. Robertson considers the outcome a positive one for Light & Wonder, noting that the compensation falls within expected parameters. However, the complete operational impact remains uncertain, given potential difficulties in removing some installations worldwide.
Robertson estimates that the agreement will provide Aristocrat with a one-time boost of 9 per cent to its financial year 2026 earnings per share. For Light & Wonder, while the payout is largely factored into the company’s valuation, the settlement reduces operational risks.
Jarden maintains a “buy” rating on both stocks, with a 12-month target price of $72 for Aristocrat and $177 for Light & Wonder, reflecting continued confidence in the companies’ performance following the resolution of this dispute.
