DraftKings sued by Colossus Bets over “wilful and deliberate” patent infringement

By Gambling Insider

Colossus Bets has accused DraftKings of patent infringement in a lawsuit filed with the US District Court of Delaware.

Law firm DLA Piper will represent the London-based business in its suit that alleges DraftKings infringed seven patents covering sports betting and gaming products that all incorporate a ‘Cash Out’ feature.

Colossus retains an extensive patent portfolio globally on sports wagers and games that use this feature, including whether or not it is used by the player.

Accordingly, the company attests that its patents apply to all accepted US bets with a Cash Out feature since the repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018, when Colossus first notified DraftKings of its patent rights.

But, according to the company, DraftKings has continued to offer its products despite “repeated notices of infringement,” leading Colossus to seek to recover all damages available by law, including increased damages for wilful and deliberate infringement.

Colossus stated that, given the scope of its patent portfolio, its current proceedings “will have implications for the entire gaming industry and multi-billion-dollar US market.”

This lawsuit follows similar proceedings against Australian gambling juggernaut, Tabcorp. Regarding its latest action against DraftKings, Bernard Marantelli, Colossus Bets’ Founder and inventor of the patents in-suit, stated: “We attempted to resolve this amicably and we gave them ample opportunity to do so.

“We take our intellectual property very seriously. This is the next step towards protecting our rights and income across the industry in the US.”

Colossus Bets has previously announced patent licences with bet365 and Esports Technologies. Beyond the US, its patent portfolio covers Australia, Japan, South Korea, the Philippines, Indonesia, South Africa, Singapore, Nigeria and Eurasia.


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