The American Arbitration Association (AAA) has certified a group of 112 casinos as a class in an antitrust dispute against gaming technology supplier Light & Wonder (L&W). This decision permits the case to proceed through arbitration, addressing allegations that L&W used dubious patent claims to monopolize the market for automated card shufflers, effectively eliminating competition and inflating prices.

The lawsuit, initiated in 2020 by the Tonkawa Tribe, an Oklahoma-based tribal casino operator, accuses L&W—formerly Scientific Games—of exploiting its patents to create a near-monopoly in the automated shuffler market. The company allegedly achieved this dominance after acquiring Shuffle Master, a prominent card shuffler manufacturer, enabling it to impose excessive pricing on casinos.

Arbitrator John Wilkinson’s ruling, issued on 9 December 2024, allows the group of casinos to proceed as a class in arbitration. This streamlined approach eliminates the need for individual filings, enabling all 112 casinos to present their claims before a single arbitrator collectively.

L&W’s legal team opposed the class certification, arguing that significant differences in the arbitration contracts among the casinos made a unified proceeding inappropriate. However, Wilkinson rejected this argument, stating that the variations were minor and did not justify denying class certification. He also highlighted legal precedents recognizing groups with as few as 40 members as valid classes, noting that the 112 casinos far exceeded this minimum threshold.

Reports suggest this could be the first antitrust arbitration case certified as a class action, marking a significant development in how disputes of this nature are addressed. The case may set a precedent for resolving antitrust allegations in arbitration rather than traditional courts.

In addition to the arbitration proceedings, L&W faces a separate antitrust lawsuit in a Chicago federal court. This case involves over 1,000 casinos that have chosen not to pursue arbitration but instead seek class certification through the traditional legal system. U.S. District Judge John Kness has not yet issued a decision on the certification motion in that case.

L&W has indicated its intent to appeal the AAA’s ruling to the New York State Supreme Court, aiming to overturn the class certification.

The appeal and the federal court case underscore the high stakes for the company and the casinos involved. The certification represents a significant step forward for the casinos, allowing them to collectively address claims that L&W’s market practices have unfairly limited competition and increased costs. For L&W, the outcome of the arbitration and related legal challenges could impact its business model and the broader gaming technology sector.

This arbitration ruling is not only pivotal for the casinos pursuing relief but also a landmark moment in antitrust law, potentially influencing how similar disputes are handled in the future. As both sides prepare for the next phase, the gaming industry will closely monitor the unfolding developments and their potential ramifications.