Ainsworth enters patent licence agreement with Aristocrat for Australian market
Ainsworth Game Technology (ASX: AGI) has entered into a patent licence and settlement agreement with Aristocrat, effective immediately, resolving legal uncertainty over key game features in the Australian market.
The Ainsworth patent licence agreement covers Aristocrat’s Australian game play feature patents, including the Hold & Spin™ family, and delivers a mutual release from all claims relating to past use of those patents.
Under the terms, Ainsworth will pay Aristocrat an aggregate of A$8.5 million in instalments over the three-and-a-half year term of the agreement. The deal removes a source of legal risk and, according to management, provides the certainty required to pursue the company’s Australian growth strategy.
When big ASX news breaks, our subscribers know first
What the agreement delivers for Ainsworth
The Aristocrat Hold & Spin licence forms the centrepiece of a broader settlement that resolves historic patent disputes and establishes reciprocal licensing rights. The key components include:
-
A non-exclusive and non-transferable licence over Aristocrat’s Australian game play feature patents, including the Hold & Spin™ patent family, for Ainsworth-branded products in Australia.
-
Coverage across the make, sell, service, upgrade and convert of Ainsworth-branded electronic game machines and Ainsworth-branded online and mobile games, including where these functions are carried out through third-party manufacture and service.
-
Pass-through rights, meaning customers, distributors and venues are automatically licensed to use, operate, service and resell supplied units during the term of the agreement, giving customers “certainty of title” as well as continuity.
-
A reciprocal grant, under which Ainsworth has granted Aristocrat a non-exclusive and non-transferable licence over all Ainsworth patents for Aristocrat-branded products in Australia.
-
A mutual release from all claims relating to past use of the licensed patents, plus a mutual non-challenge covenant.
For investors, the arrangement eliminates a litigation overhang and provides customers and venues with confidence over the products they operate, helping protect Ainsworth’s Australian sales pipeline.
CEO Commentary
“The Agreement we have entered into with Aristocrat (which is effective immediately) provides us with the certainty required to confidently implement our strategic growth initiatives in the Australian market,” said Ryan Comstock, Chief Executive Officer of Ainsworth.
Royalty-free responsible gaming licence a standout inclusion
Beyond the game feature patents, Ainsworth has secured a “royalty free licence” to Aristocrat’s responsible gaming patents. The covered technologies include:
-
Digital wallets
-
Account-based play
-
Player limits
-
Self-exclusion
-
Player messaging
-
AI-based risk detection
This licence will remain in place until each responsible gaming patent expires, which the company notes is “well beyond the term of the Agreement.”
The inclusion represents a durable, long-tail benefit. As responsible gaming regulation continues to tighten across Australian jurisdictions, access to these technologies without an ongoing royalty cost positions Ainsworth to meet compliance requirements while managing expenditure.
Background: how the deal came about
The agreement follows Aristocrat’s success in the case Aristocrat Technologies Australia Pty Ltd v Commissioner of Patents [2025] FCAFC 131.
Following that outcome, Ainsworth and Aristocrat engaged in negotiations relating to the use of Aristocrat’s game feature patents. According to the company, these negotiations culminated in the execution of the current agreement.
Understanding patent licensing in the gaming sector
A patent licence agreement grants one party the right to use another party’s patented technology, typically in exchange for payment. When combined with a settlement, it also resolves any outstanding disputes over prior use of that technology.
In the electronic gaming machine industry, specific game mechanics can be protected by patents. The Hold & Spin feature family refers to a widely used gameplay mechanic, and the ability to legally incorporate it matters for product competitiveness. Manufacturers unable to offer sought-after features may find their products less attractive to venues and players.
The concept of pass-through rights is significant for a manufacturer’s revenue. In plain terms, these rights mean that once Ainsworth supplies a unit, its customers, distributors and venues are automatically licensed to operate, service and resell it. Without such rights, downstream operators could face uncertainty over whether they are permitted to use the equipment they have purchased.
For investors, legal certainty over core game features underpins revenue continuity. It allows Ainsworth to supply products with confidence and supports its ability to expand within the Australian market.
Commercial terms at a glance
The following table summarises the disclosed terms of the agreement. Remaining commercial terms are confidential to the parties.
| Term | Detail | Investor Relevance |
|---|---|---|
| Total consideration | A$8.5 million | Paid in instalments |
| Payment structure | Instalments over 3.5-year term | Spreads cost, limits near-term cash impact |
| Game feature licence | Non-exclusive, incl. Hold & Spin™ family | Access to core mechanics |
| Responsible gaming licence | Royalty-free, until patent expiry | Durable long-term benefit |
| Pass-through rights | Customers/distributors/venues auto-licensed | Certainty of title and continuity |
What it means for the investment case
The agreement brings together several outcomes for Ainsworth. It removes a legal risk, secures access to sought-after game features including the Hold & Spin™ family, and delivers a royalty-free responsible gaming licence, all for a defined and staged cost of A$8.5 million.
Management has framed the arrangement as providing the certainty required to confidently implement its strategic growth initiatives in the Australian market.
The agreement is effective immediately and runs for a three-and-a-half year term. With litigation uncertainty resolved and reciprocal licensing rights established, Ainsworth has clarified its position over the game features central to its Australian product offering.
Ainsworth’s H1CY26 trading update placed APAC at approximately 31% of group revenue, up from 23% in the prior period, reinforcing why locking in Australian market access through a settled licensing position is a strategic priority for the company.
Don’t Miss the Next Consumer Discretionary Move on the ASX
Big News Blast delivers FREE breaking ASX announcements straight to your inbox within minutes of release, complete with in-depth analysis already done for you. Join 20,000+ active subscribers who stay ahead of the market the moment news breaks. Click the “Free Alerts” button at StockWire X to get started today.