In 2020, the Tonkawa Tribe, an operator of a tribal casino in Oklahoma, initiated legal action against L&W (formerly known as Scientific Games). They accused the company of leveraging flawed patent claims to create an almost complete dominance over the market for automated shufflers. This alleged monopoly, according to the lawsuit, hindered competition and led to inflated pricing for the shuffler equipment. Scientific Games introduced these shufflers to the market following their acquisition of Shuffle Master.
A recent decision by the arbitration association has allowed the case to proceed under a single arbitrator, doing away with the necessity for 112 separate proceedings. L&W’s attorneys had argued that the variations in the individual arbitration agreements were too significant to permit class certification.
However, arbitrator John Wilkinson of the American Arbitration Association (AAA) disagreed in his December 9 ruling, which was made public on December 17. He noted that the number of casinos involved in the lawsuit surpassed the threshold required for a class action, citing legal precedents indicating that a group of 40 members is sufficient to form a class.
### L&W: Differing Views on Complaints
L&W’s legal team has previously contended that the arbitrator failed to adhere to precedent and overlooked the possibility of varied claims among potential class members. Wilkinson countered this argument, viewing these differences as minor.
According to a report from Reuters, this case could be the first instance of a certified antitrust arbitration class for casinos.
Meanwhile, a separate case in Chicago’s federal District Court is addressing antitrust claims concerning automated shufflers against L&W. This lawsuit represents over 1,000 casinos that opted not to pursue arbitration, instead seeking class certification through traditional court proceedings. U.S. District Judge John Kness has not yet made a decision regarding the certification motion in this case.
In response to Wilkinson’s ruling on class certification, Light & Wonder plans to appeal to the New York State Supreme Court.