Casinos want to make games quicker and increase profits, so they find ways to get players into games more quickly. One method is using digital casino games, which is part of the reason online poker and online blackjack grow more popular each year.
In physical casinos, where players like interacting with people, dealers now use fast card shuffling machines to keep games running smoothly, efficiently, and fairly.
A recent ruling by the American Arbitration Association (AAA) is allowing a group of more than 100 casino operators to fight a card shuffling machine supplier in front of one arbitrator.
Casinos Fighting Automatic Card Shuffler Supplier
The AAA has approved 112 casinos as a class, allowing them to proceed with a class-action antitrust lawsuit against gaming supplier Light & Wonder regarding its automated shufflers.
The Tonkawa Indians, who run a tribal casino in Oklahoma, filed a lawsuit in 2020. They claim that L&W, known as Scientific Games at the time, used faulty patent claims to create a near monopoly on automated card shufflers, which limited competition and led to overpricing. Scientific Games began selling these shufflers after acquiring Shuffle Master.
The arbitration association has ruled that the case can proceed with a single arbitrator, which removes the requirement for 112 separate filings. L&W's attorneys argued that the individual arbitration contracts are too different to treat as a single class.
Decision Expected To Be Appealed
A report in Reuters states that the casinos might become the first-ever certified antitrust arbitration class.
Light & Wonder intends to appeal Wilkinson’s class certification ruling in the New York State Supreme Court.
In Chicago, a separate lawsuit in federal District Court involves more than 1,000 casinos pursuing antitrust claims related to automated shufflers against L&W. These casinos are opting for class certification in traditional courts instead of seeking arbitration. US District Judge John Kness has not yet decided on the certification motion for this case.
What Is An Automated Card Shuffler?
According to Borgata online casino, there are two main types of card shufflers: automatic and manual. Both types shuffle cards using cogs and wheels or mechanical pressure, but they operate differently.
The automatic card shuffling machine uses a motor, often powered by batteries, making it easier to use but with a higher risk of card damage if the machine misaligns a card. In contrast, the manual shuffler requires someone to turn a hand crank, which takes more effort but allows immediate stopping if something goes wrong.
Why Are Card Shuffling Machines Needed?
Not only are card shuffling machines more efficient, unlike human dealers, who might be bribed to shuffle cards in a particular way, a card shuffling machine cannot be influenced.
This is especially important for casinos and gambling companies, which need to ensure secure and fair games. A card shuffling machine efficiently, fairly, and securely shuffles cards. So, casinos are willing to pay for the technology but don’t want to be gouged in the process.
According to the Reuters report, the increase in mass arbitration might lead companies to rethink their strong stance against class-wide arbitration. No matter the result of this case, the use of class-wide arbitration should provide valuable information for defendants to consider when looking for the best way to decrease their potential liability.
