Colossus Bets has filed a patent infringement lawsuit against DraftKings in the US District Court for Delaware, over patents related to a cashout feature.
Colossus Bets holds seven US patents related to a cashout product, all referring to a “full or partial buy-out offer made at any time prior to completion of a wagering event”.
Colossus Bets said it first notified DraftKings of these patents in early 2018, the year DraftKings first launched a cashout product, “and has since provided numerous notices of ongoing infringement”.
“We attempted to resolve this amicably and we gave them ample opportunity to do so,” Colossus Bets co-founder Bernard Marantelli – listed as the inventor in all of the relevant patents – said.
The business added that, because of this, it would seek increased damages “for willful and deliberate infringement”.
“Given the scope of Colossus’ patent portfolio, this will have implications for the entire gaming industry and multi-billion US market,” Colossus Bets said.
The business had previously filed a similar patent lawsuit also related to cashout features against Australia’s Tabcorp. It also holds patent licences with Bet365 and Esports Technologies, allowing these businesses to use the patented technology.
“We take our intellectual property very seriously. This is the next step towards protecting our rights and income across the industry in the US,” Marantelli said.
Earlier this year, esports betting technology provider Engine Media Holdings filed its own patent infringement lawsuit against DraftKings, related to patents that concerned integration between skill gaming and live events.
