IGT terminates license deal with Scientific Games

Tuesday 28th of April 2015

International Game Technology has terminated a license agreement with Scientific Games as a result of the latter allegedly breaching the agreement.

Scientific Games said it received the notification from IGT last week purporting to the termination of the agreement made last year in which IGT granted to the company and its subsidiaries a license to use certain “ticket-in-ticket-out” cashless gaming technology patented by IGT and others.

The dispute over the rights to use the license follows the acquisition of Bally Technologies by Scientific Games. Prior to its acquisition, Bally had also entered into the same license agreement with IGT.

“As a result of the Company’s acquisition of Bally on November 21, 2014, the Company believes that it and its subsidiaries are entitled to utilize the licenses provided under the Bally License Agreement. IGT has previously communicated to the Company that it disagrees with the Company’s position and that it believes that the Company is in breach of the License Agreement due to its use of license tags belonging to Bally instead of license tags issued pursuant to the License Agreement.”

On December 19, 2014, SG filed a complaint against IGT in the District Court of Clark County, Nevada, seeking to enforce the terms of the Bally License Agreement.

“The Company believes IGT’s claims are without merit and disputes that the License Agreement has been validly terminated. The Company intends to enforce its rights under the License Agreement and the Bally License Agreement and will pursue such other remedies as it determines are appropriate.”