Colossus Bets accuses DraftKings of cashout patent violation
According to Colossus Bets, when DraftKings just released a cashout product in 2018, that is when the sports betting operator was introduced to the patents. However, since 2018 DraftKings has received multiple remarks concerning its continuous violations.
Bernard Marantelli, the co-founder of Colossus Bets, stated that they tried to resolve this peacefully and provided DraftKings every chance to act so. Marantelli went on to state:
“We take the protection of our intellectual property extremely seriously. This is the next move in defending our rights and revenue in the US sector.”
As a consequence, Colossus Bets said that it will pursue extra penalties for intentional and malicious breach. The company continued, saying:
“Due to the breadth of Colossus’ patent portfolio, this will have consequences for the overall gaming industry and the multi-billion dollar US market.”
The seven US patents for cashout products held by Colossus Bets are all applicable to a wholly or partially buy-out offer. They are distributed at any moment before the completion of the betting activity.
This is not the first time the company has filed a patent lawsuit related to cashout features. A while back, the company had also filed against Tabcorp, Australia’s largest gambling company. Colossus Bets also has patent licensing deals with Bet365 and Esports Technologies. This enables the two companies to use the patented technology.
Engine Media Holdings, an eSports betting technology provider, sued DraftKings for similar reasons earlier in the year.