CG Technology Suing Daily Fantasy Sports Operators in Patent Case
The bad news just keeps rolling in for beleaguered daily fantasy sports operators, DraftKings and FanDuel. Earlier this week, CG Technology filed patent infringement lawsuits against the two companies in a Nevada courtroom.
CG Technology (which used to operate under the name Cantor Gaming) is a longtime provider of sports betting technology and software to Nevada’s regulated sportsbooks.
In two separate lawsuits, the company is accusing the daily fantasy operators of seven specific instances of patent infringement. CG Technology has also named Interactive Games LLC (which is based in Nevada) and Interactive Games Ltd (which is based in the UK) as co-plaintiffs in the suit, according to published reports.
These allegations outlined in the suit revolve around the daily fantasy sports operators use of patent protected technology that performs such mundane tasks as identifying players; keeping pace with incoming results; and generating payouts.
According CG Technology, DraftKings and FanDuel have been infringing on their patents since at least 2014.
In the lawsuit, the company details it attempts to get the daily fantasy back off, which they say have been completely ignored. Those attempts included a series of cease and desist letters, as well as an attempt at an negotiated settlement.
CG Technology is looking to the court to issue an injunction against the daily fantasy sports operators to keep them from using the technology in question. They’re also seeking compensation for the time they’ve already sunk into their cease and desist efforts.
The daily fantasy sports operators could hardly ask for a worse venue to fight their battles than a Nevada court room. Nevada lawmakers have already barred Silver State residents from playing on DFS sites until they’re operating in a regulated environment.
The State of Nevada has also made it very clear that they consider DFS to be exactly the same as sports betting.
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