Ainsworth secures Aristocrat patent licence to clear path for Australian growth
Ainsworth Game Technology (ASX: AGI) has entered into a patent licence and settlement agreement with Aristocrat, effective immediately and dated 14 August 2026, resolving potential claims relating to the historic use of certain Aristocrat patents in the Australian market.
The Ainsworth patent licence involves total consideration of A$8.5 million, paid in instalments over a three-and-a-half-year term. It gives the company certainty to make, sell, service, upgrade and convert its branded machines in Australia.
The arrangement follows Aristocrat’s success in the case Aristocrat Technologies Australia Pty Ltd v Commissioner of Patents [2025] FCAFC 131, which prompted the two parties to enter negotiations over the use of Aristocrat’s game feature patents. Those negotiations culminated in the execution of the Agreement, delivering both a licence and a release from potential claims.
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What the agreement delivers for Ainsworth
The deal grants Ainsworth several core rights from Aristocrat, spanning game features and responsible gaming technology.
The key grants received by Ainsworth include:
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A non-exclusive, non-transferable licence covering Aristocrat’s Australian game play feature patents, including the Australian Hold & Spin™ patent family, for Ainsworth branded products in Australia.
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A non-exclusive licence to Aristocrat’s Australian responsible gaming patents.
The licence covers making, selling, servicing, upgrading and converting Ainsworth branded electronic game machines and Ainsworth branded online and mobile games in Australia, including when the company manufactures and services through third parties.
Pass-through rights protect customers
The Agreement includes pass-through rights, meaning Ainsworth’s customers, distributors and venues are automatically licensed to use, operate, service and resell units supplied during the term of the agreement.
For investors, this matters because it provides customers with certainty of title as well as continuity, helping to protect Ainsworth’s existing sales relationships across the Australian market.
Royalty-free responsible gaming licence
Ainsworth has also obtained a royalty free licence of Aristocrat’s responsible gaming patents, covering a range of player protection technologies.
The covered features include:
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Digital wallets
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Account-based play
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Player limits
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Self-exclusion
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Player messaging
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AI-based risk detection
This licence will remain in place until each responsible gaming patent expires, which is well beyond the term of the Agreement.
Director quote
Ryan Comstock, CEO of Ainsworth Game Technology
“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.”
The full deal terms at a glance
The Agreement is a reciprocal arrangement. Ainsworth has also granted Aristocrat a non-exclusive, non-transferable licence over all of Ainsworth’s patents for Aristocrat branded products in Australia.
| Term | Detail |
|---|---|
| Ainsworth licence granted | Aristocrat Australian game feature patents (incl. Hold & Spin™) plus responsible gaming patents |
| Aristocrat licence granted | All Ainsworth patents for Aristocrat branded products in Australia |
| Mutual release | All claims relating to past use of the licensed patents |
| Non-challenge covenant | Mutual covenant over each other’s licensed patents |
| Consideration | A$8.5 million in instalments |
| Term | 3.5 years (responsible gaming licence extends to patent expiry) |
Understanding “Hold & Spin” and why patent licences matter
Using a patented feature without a licence can create legal exposure for a manufacturer. A licence combined with a settlement removes that risk, granting the right to use the feature while releasing the company from claims relating to past use.
For investors, this distinction is important. The deal converts what was an uncertain legal exposure into a known, fixed cost, improving the predictability of Ainsworth’s Australian operations.
Why the deal strengthens the investment case
The Agreement carries several implications for the company’s Australian position.
First, it removes litigation uncertainty stemming from the FCAFC 131 case background, replacing an open-ended legal question with a settled commercial arrangement.
Second, the consideration is a fixed, known cost of A$8.5 million rather than an unquantified legal risk. This provides greater visibility over the company’s future obligations.
Third, the licence secures the ongoing right to use game features across electronic machines and online and mobile games in Australia, underpinning the company’s stated strategic growth initiatives.
The Australian certainty this agreement delivers carries added weight given the company’s H1CY26 trading update, which flagged a 93% profit collapse driven almost entirely by North American weakness while APAC revenue grew approximately 4% and lifted its share of group revenue to around 31%.
No earnings or revenue impact figures have been disclosed in connection with the Agreement, and the company has not quantified any growth outcome from the deal.
What happens next
The Agreement is effective immediately, with instalment payments spread over the three-and-a-half-year term. The responsible gaming licence continues beyond that term until the relevant patents expire.
The remaining commercial terms of the arrangement remain confidential to the parties. The announcement was authorised for release by the Board of Directors of Ainsworth Game Technology Limited.
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