Casino News, News

Evolution’s Trade Secrets Case Against Light & Wonder Sent to Arbitration

Evolution-granted-arbitration-in-Light-Wonder-infringement-caseA Nevada District Court has directed Evolution’s intellectual property claims against Light & Wonder into arbitration, marking the latest development in a legal battle centered on Evolution’s hit live dealer title, Lightning Roulette.

Judge Cristina Silva issued the ruling on September 30, finding that the licensing agreement between the two gaming giants compels arbitration for trade secret disputes. This decision shifts the venue for key parts of the case from courtrooms to a private arbitration process overseen by the International Chamber of Commerce.

From Collaboration to Conflict

Evolution first launched Lightning Roulette in 2018 as an online live dealer game. Discussions with Light & Wonder followed, with the aim of adapting the product for land-based casinos. To facilitate talks, Evolution provided confidential mathematical files and other sensitive information under non-disclosure agreements.

In 2021, the two companies signed a licensing agreement that gave Light & Wonder exclusive rights to develop a physical version of Lightning Roulette. According to Evolution’s complaint, Light & Wonder later walked away from the arrangement and introduced its own games – Roulette X, PowerX, and 88 Fortunes Blaze Live Roulette—which allegedly relied on Evolution’s confidential data.

Evolution sued in June 2024, accusing Light & Wonder of misappropriating trade secrets and infringing patents. The case was initially dismissed in February when Judge Silva ruled that Evolution’s patents were not enforceable. However, the judge allowed the company to amend and resubmit its complaint, leading to the current dispute over arbitration.

Judge Upholds Arbitration Clause

In her ruling, Judge Silva sided with Light & Wonder’s motion to compel arbitration, concluding that Evolution’s claims fall under the arbitration clause of the 2021 agreement. The clause specified that unresolved disputes “shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by three arbitrators,” with London designated as the seat of arbitration.

Evolution argued that the agreement contained a carve-out exempting disputes related to licensed properties from arbitration. However, Silva rejected this view. “Simply stated, that provision does not provide that matters of IP infringement should not be subject to arbitration. Rather, that provision states that if a matter is deemed to fall within infringement of IP, the matter should be governed by ‘laws of the territory where the IP is held and allegedly infringed,’” she wrote.

Light & Wonder also claimed that Evolution’s demands were barred by a contractual one-year limitation on arbitration. Judge Silva declined to rule on this point, instead determining that it, too, must be decided by arbitrators.

Arbitration Proceedings Ahead

As a result of the ruling, Evolution must pursue its trade secret claims—including allegations that Light & Wonder used confidential multipliers and payout system data—in arbitration rather than federal court. Certain exhibits from the case have been sealed, but both parties are required to attend a status conference on October 30 to discuss how the arbitration decision affects the remaining claims, including ongoing patent issues that will remain with the Nevada court.

The ruling narrows the courtroom docket for Light & Wonder but does not end its legal entanglements. The company is also facing an active lawsuit from Aristocrat, which claims that Light & Wonder’s Dragon Train slot copied elements of Aristocrat’s popular Dragon Link. Unlike the Evolution case, that dispute remains in discovery, with proceedings expected to continue into spring 2026.

By directing the matter toward arbitration, the Nevada court has shifted the trajectory of one of the industry’s most high-profile disputes. For Evolution, the ruling underscores the challenges of enforcing intellectual property protections when licensing agreements contain arbitration provisions. For Light & Wonder, the decision spares the company a trial in Nevada for now, but ensures the allegations will still face scrutiny before arbitrators.

Source:

Light & Wonder, Evolution arbitration, sbcamericas.com, October 2025.