SciGames Sued in Dispute Over Royalties

The Las Vegas-based developer of an electronic pai gow game is accusing Scientific Games of shorting it on payments the company says the slot giant owes it for licensing the platform. Lubin-Jones, as the company is called, says SciGames failed to report more than 100 installations.

A Las Vegas-based company with a patent for an electronic pai gow game is suing Scientific Games, alleging the machine gaming giant isn’t paying all that is owes from licensing the platform.

The suit, filed by Lubin-Jones in Clark County District Court, says it executed a letter of intent with Scientific Games in 2015 allowing the latter to market its gaming products. But in reviewing royalty statements provided by SciGames the company says it discovered that several installations “were not reflected in the royalty accounting”.

As of July 21, SciGames reported 44 games in use, when the actual number was 170, according to the suit.

Lubin-Jones says Scientific Games “provided an incomplete spreadsheet fraught with internal flaws, including, without limitation: excluded licensed products; inexplicable prorated calculations that were not contemplated or permitted by the license agreement, and failures to collect from casinos or other licensed gaming establishments for licensed products that were sold, leased or licensed”.

The suit seeks $15,000 in damages and wants the court to order Scientific Games to allow a forensic accountant to examine the relevant bookkeeping.

SciGames did not comment, according to news reports.