Nevada Court Splits Evolution and Light & Wonder Lawsuit, Orders Arbitration for Trade Secrets
A federal court in Nevada has ruled on the intellectual property dispute between Evolution and Light & Wonder (L&W). U.S. District Judge Cristina Silva ruled on September 30, granting L&W’s request to compel arbitration for the core of the case. The decision mandates that Evolution’s trade secret claims must be resolved through arbitration, while its separate patent infringement claims will remain in the district court.
The court determined the dispute falls under a 2021 license agreement between the two companies. This agreement included a mandatory arbitration clause. The court has set London as the seat of arbitration.
Trade Secrets Head to London Arbitration
The original lawsuit, filed by Evolution in 2024, alleged that Light & Wonder misappropriated confidential mathematical files and trade secrets. Evolution claimed L&W used this proprietary data to create competitive products, specifically citing titles like RouletteX, PowerX, and 88 Fortunes Blaze Live Roulette. The core technology in question was Evolution’s popular Lightning Roulette game.
The 2021 license agreement granted L&W exclusive rights to develop a physical, land-based version of Lightning Roulette. In sharing confidential information, including mathematical files describing the multiplier and payout system, the two firms operated under non-disclosure agreements (NDAs) since 2018.
Evolution argued that the license agreement contained a specific “carve-out” for disputes related to licensed property, which it claimed covered the trade secrets. Judge Silva found this interpretation unpersuasive. She ruled that the arbitration clause was broad enough to encompass any dispute arising from or related to the license agreement. Furthermore, the judge denied ruling on L&W’s alternative argument that Evolution’s claims were time-barred under the contract’s 12-month limitation period, stating that the arbitrator must resolve that question.
Patent Claims Remain in Court
While the trade secret claims move to arbitration, Judge Silva allowed Evolution’s claims regarding the infringement of five Evolution patents to remain in the district court.
The parties have been ordered to attend a status conference on October 30. The conference will address how the arbitration ruling impacts the remaining patent claims.
The current dispute follows an earlier action where the court dismissed Evolution’s initial complaint in February, although it allowed the company to amend and refile its claims.
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