Light & Wonder’s motion to force Evolution to take its trade secrets claims to arbitration has been approved by a Nevada district court.
The court ruled on September 30 that the claims made by Evolution that Light & Wonder misappropriated confidential mathematical files and trade secrets for the creation of competing products must go to arbitration. Patent infringement claims will proceed separately in court.
The two companies will now resolve the claims regarding trade secrets out of court, after the court dismissed the first complaint back in February. Evolution subsequently refiled new claims in a separate document.
“It is hereby ordered that defendants’ motion to compel arbitration [ECF No. 74] is granted. The parties must promptly submit these claims to arbitration in accordance with the License Agreement.” – Evolution vs Light & Wonder
Judge Cristina Silva granted Light & Wonder’s motion after finding that the dispute is part of an arbitration clause in a 2021 licensing agreement between the two gaming companies. The pair agreed then that Light & Wonder has exclusive rights to create a physical version of Evolution’s Lightning Roulette game to use in land-based casinos.
In 2024, Evolution first filed claims of trade secrets misappropriation under federal and Nevada law, as well as infringement of five Evolution patents. It argued that Light & Wonder used confidential files and information to create RouletteX, PowerX and 88 Fortunes Blaze Live Roulette.
The licensing agreement stated that any claim not resolved through negotiation should “be finally settled under the Rules of Arbitration of the International Chamber of Commerce by three arbitrators,” leading to the judge’s ruling here. The arbitration location has been set as London, after the court dismissed Evolution’s arguments that the dispute is related to intellectual property and therefore should not go to arbitration.
The five patent infringement claims remain with the district court, with a status conference scheduled for October 30. Evolution argues that confidential information was shared with Light & Wonder under an NDA that went on to be used in multiplier and payout systems.
Featured image: Light & Wonder
