The authorization to collectively seek arbitration against Light & Wonder, a manufacturer of gambling machines, has been given to more than 100 casinos. The ruling streamlines the legal process by permitting the group to continue as a class in a single arbitration presided over by a single arbitrator.
John Wilkinson, an arbitrator for the American Arbitration Association (AAA), made this decision, avoiding the necessity for more than 100 individual cases. Light & Wonder claimed that class certification was unattainable due to different individual arbitration contracts, but Wilkinson rejected this claim.
Allegations of Monopoly and Overcharging
The dispute stems from accusations that Light & Wonder, previously known as Scientific Games Corp., leveraged flawed patent claims to dominate the market for card-shuffling machines. The litigation was initiated in 2020 by the Tonkawa Indians of Oklahoma, a tribal casino operator. The tribe alleged that Scientific Games exploited its monopoly to stifle competition and inflate prices for card-shuffling devices, forcing casino operators to rely on its products.
Wilkinson described class arbitration as “the fairest and most efficient method” for addressing the antitrust claims. His decision emphasized the impracticality of handling more than 100 separate cases. With 112 members in the class, Wilkinson highlighted that the number far exceeds the threshold for class certification, which is presumed for groups larger than 40.
Attorneys for Light & Wonder argued against the class certification, claiming substantial differences between class members’ cases. However, Wilkinson countered that the variations among members were minimal and insufficient to decertify the class.
The fact that this arbitration seems to be the first certified antitrust arbitration class makes it a noteworthy milestone. According to Reuters, it is revolutionary, especially in light of the 2019 ruling in Lamps Plus, Inc. v. Varela by the U.S. Supreme Court that restricted classwide arbitration.
A parallel complaint has also been filed against Light & Wonder in a Chicago federal district court. Similar antitrust claims have been made against more than 1,000 casinos in that lawsuit.
In addition to establishing a new standard for arbitration disputes, this pooled arbitration demonstrates the casinos’ shared resolve to contest Light & Wonder’s purported actions.
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