Trade Secrets Dispute Sent to Arbitration, Patents Stay in Court

Two gaming titans—Evolution and Light & Wonder—are now facing off over trade secrets in a high-stakes arbitration battle.

A Nevada district court has ruled that Evolution must arbitrate its trade secrets claims under the companies’ 2021 licensing agreement, while allowing patent infringement claims to continue in court. This split decision signals a complex legal showdown that could reshape how casino technology IP is protected.

For industry insiders, the case highlights the critical importance of licensing agreements, NDAs, and arbitration clauses when sharing proprietary gaming technology. The outcome could set a precedent for future disputes in the rapidly expanding live dealer and land-based hybrid gaming market.

Let’s unpack how this dispute evolved, why arbitration matters, and what it tells us about protecting innovation in today’s gaming industry.

Key Points:

1. Nevada court orders Evolution and Light & Wonder to arbitrate trade secrets claims in London under ICC rules.
2. Patent infringement claims related to Lightning Roulette remain in district court for separate proceedings.
3. The case underscores the risks of licensing proprietary gaming tech without airtight carve-outs for IP disputes.

Evolution vs Light & Wonder: Inside the High-Stakes Arbitration Over Lightning Roulette Tech

As someone who’s watched gambling tech evolve for decades, I see this case as a textbook example of innovation risk.

Evolution, known globally for its live dealer and hybrid games, entered a 2021 licensing agreement granting Light & Wonder (formerly Scientific Games) the exclusive right to develop a land-based version of Lightning Roulette.

That agreement contained a standard arbitration clause: unresolved disputes would go to arbitration under International Chamber of Commerce (ICC) rules in London. Fast forward to 2024—Evolution accuses Light & Wonder of misappropriating its trade secrets to develop competing products like RouletteX, PowerX, and 88 Fortunes Blaze Live Roulette.

Evolution claims confidential mathematical files—explaining Lightning Roulette’s multipliers and payout mechanics—were improperly used to build rival games. It filed suit for trade secrets misappropriation under both federal and Nevada law and for patent infringement covering five of its patents.

The Court’s Decision

Judge Cristina Silva ruled on 30 September that Evolution’s trade secrets claims arise directly from the licensing agreement and must be arbitrated. She found Evolution’s argument—that the contract’s carve-out excluded trade secrets disputes—unconvincing.

Instead, she ruled the carve-out merely states IP infringement matters should be “governed by the laws of the territory where the IP is held,” not excluded from arbitration.

As a result, the arbitrators—not the court—will decide on trade secrets claims and even on Light & Wonder’s time-bar argument under a 12-month limitations clause.

However, patent infringement claims remain in district court, creating a two-track litigation that could stretch well into 2025 and beyond.

Why This Matters for Gaming IP

This case is more than a corporate spat. It’s a reminder that licensing agreements need clear, explicit carve-outs for trade secrets and patents if you want to keep disputes in a public courtroom. Arbitration can be faster and more confidential—but it also removes some leverage and public scrutiny.

For gaming companies, especially those blending land-based and digital tech, protecting the mathematical and payout models behind hit games is just as vital as protecting the brand name. The Lightning Roulette concept helped Evolution dominate live roulette streams; losing control over its mechanics would erode its competitive edge.

My Take

In my view, this dispute highlights a key shift: gaming innovation is increasingly data-driven, and the “secret sauce” isn’t just branding—it’s algorithms, payout structures, and UX systems. Those elements are harder to patent but easier to leak.

Companies should rethink how they structure partnerships, NDAs, and arbitration clauses. Otherwise, they risk seeing their innovations repackaged by competitors under the protection of private arbitration.

The Evolution vs Light & Wonder case is a warning shot for the entire gambling tech industry. Arbitration may be confidential, but it’s no less consequential.

For operators and suppliers, the lesson is clear: if you’re licensing your crown-jewel technology, nail down how trade secrets and patents are protected—and where disputes will be heard.

This arbitration will decide who controls key mechanics behind one of gaming’s most successful roulette products. But its ripple effect will be felt far beyond Lightning Roulette—reshaping how the industry approaches IP protection in the age of hybrid gaming.

Tags: #EvolutionGaming #LightAndWonder #TradeSecrets #PatentInfringement #LightningRoulette #GamingInnovation

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