Gaming Supplier Faces Class-Action Arbitration in Antitrust Suit
A class-action arbitration involving 112 casinos has been approved to move forward against gaming supplier Light & Wonder (L&W) over allegations of antitrust violations tied to automated card shufflers.
Background of the Case
The dispute began in 2020 when the Tonkawa Indians, an Oklahoma-based tribal casino operator, filed a lawsuit alleging that L&W, previously known as Scientific Games, misused faulty patent claims to dominate the automated shuffler market. This alleged monopoly led to limited competition and inflated prices for the equipment. Scientific Games initially entered the market after acquiring Shuffle Master, a prominent player in automated shuffler technology.
On 9 December, arbitrator John Wilkinson of the American Arbitration Association (AAA) ruled that the 112 casinos could collectively pursue the case through arbitration, avoiding the complexity of 112 individual claims. This decision, announced on 17 December, sets a significant precedent by consolidating the claims into a single class-action arbitration.
Wilkinson cited court precedents affirming that 40 members are sufficient to form a legal class, making the participation of 112 casinos “well beyond” the required threshold.
L&W’s Counterarguments
L&W attorneys argued against class certification, asserting that the casinos’ individual arbitration agreements varied too widely to qualify as a single class. They also contended that the claims brought forward by each casino were not uniform. Wilkinson, however, dismissed these concerns, characterizing the differences as “narrow” and insufficient to prevent class certification.
Parallel Legal Proceedings
In addition to the arbitration, L&W faces a separate antitrust lawsuit in federal court in Chicago. This case involves over 1,000 casinos that are seeking class certification through traditional court proceedings rather than arbitration. US District Judge John Kness has yet to decide on the motion for class certification in that case.
L&W has announced plans to appeal Wilkinson’s arbitration ruling to the New York State Supreme Court, challenging the class certification decision.
This arbitration case could mark a groundbreaking moment as it may become the first-ever certified antitrust arbitration class. The outcome has the potential to influence future legal battles surrounding arbitration and class-action suits in antitrust disputes.
