In a significant development, the arbitration ruling has permitted a lawsuit initiated by the Tonkawa Indians in 2020 to progress against L&W, previously known as Scientific Games. This case alleges that L&W misused deceptive patent claims to establish a dominant position in the market for automated shufflers, stifling competition and enabling inflated equipment prices. The company began marketing the shufflers following its acquisition of the former Shuffle Master.
The recent decision by the arbitration association allows the matter to be heard by a single arbitrator, which streamlines the process by removing the requirement for 112 individual filings. L&W's legal representatives had contended that the arbitration contracts for each participant varied too significantly for a class certification.
However, John Wilkinson, the arbitrator from the AAA, ruled on December 9 and announced the decision on December 17, stating that the number of casinos involved far exceeds the necessary threshold for class action status, referencing legal precedents confirming that 40 members suffice to constitute a class.
L&W's attorneys previously argued that the arbitrator overlooked established precedents and failed to acknowledge that each proposed class member likely holds distinct grievances. Wilkinson countered this by describing the variations as "narrow."
According to a Reuters report, this case could represent the first certified class for antitrust arbitration among casinos. In a parallel legal action, another lawsuit has been filed in the federal District Court in Chicago, targeting L&W on similar antitrust grounds concerning automated shufflers and representing over 1,000 casinos. Unlike the arbitration case, these casinos are seeking traditional class certification without arbitration. The ruling on that certification motion by US District Judge John Kness is still pending.
In response to the recent arbitration ruling, Light & Wonder plans to appeal the decision to the New York State Supreme Court.
