DraftKings faces legal raps over ‘Cash Out’ feature

DraftKings faces legal raps over ‘Cash Out’ feature

Colossus Bets has filed a lawsuit against DraftKings alleging patent infringement.

DLA Piper will defend the London-based company in its lawsuit against DraftKings, alleging that the sports betting and daily fantasy company infringed on seven patents concerning sports betting and gaming products that all have a ‘Cash Out’ feature.

Draftkings in a legal battle over Cash Out feature

Colossus Bets, a global provider of sports jackpots and gaming technologies, said that it is redoubling its efforts to protect its intellectual property by suing DraftKings in the United States District Court for the District of Delaware patent infringement.

Seven patents related to sports betting and gaming goods that incorporate a Cash Out feature are in the lawsuit. Colossus owns a substantial patent portfolio worldwide covering sports wagering and games that include this function, regardless of whether the player uses it.

As such, the business certifies that its patents cover all approved US bets with a Cash-Out option after the Professional and the repealed Amateur Sports Protection Act (PASPA) in 2018, at which point Colossus notified DraftKings of its patent rights.

The suit in the United States follows recent legal action against Tabcorp in Australia. Colossus Bets, inventor of the patents at issue, commented of choice to file a lawsuit; Colossus stated that it owns a substantial patent portfolio worldwide covering sports betting and games that have Cash Out, regardless of whether the Cash Out feature is used by the user. 

Colossus initially alerted DraftKings of its patent rights in 2018 and has since served many notices of continued violation. Bernard Marantelli, founder of “We endeavored to resolve this amicably and provided them sufficient time to do so.”

Because DraftKings has continued to market its products in the face of numerous complaints of infringement, Colossus is pursuing all applicable remedies, including enhanced damages for willful and deliberate infringement. Given the breadth of Colossus’ patent portfolio, this will have ramifications throughout the gaming industry and the multibillion-dollar US market. However, DraftKings continues to market its goods despite “multiple complaints of infringement,” prompting Colossus to seek all applicable damages, including enhanced damages for willful and deliberate infringement. According to Colossus, the current proceedings “will have consequences for the entire gaming industry and multibillion-dollar US market,” given the breadth of its patent portfolio. 

This case comes on the heels of similar proceedings against Tabcorp, Australia’s gambling powerhouse.

Quotes from the Press Release

 Bernard Marantelli, Colossus Bets’ founder and creator of the patents in issue, commented on the current move against DraftKings: “We attempted to resolve this amicably and provided them enough opportunity to do so.”

“We take our intellectual property very seriously,” Bernard Marantelli continued. It is the next step in ensuring that our rights and income are being protected across the industry in the United States.”

Previously, Colossus Bets signed patent licensing agreements with bet365 and Esports Technologies. Apart from the United States, Colossus’ patent portfolio includes patents in Australia, Japan, South Korea, the Philippines, Indonesia, South Africa, Singapore, and Nigeria (EAPO).

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About Lou De Aguila

Lou Ramon Aguila is a contributor for Golden Casino News. He has a degree in BSBA Legal Management with great interest in high-profile legal cases involving sports personalities. An ultimate sports junkie, he covers just about everything in the sporting world with an emphasis on the NBA, NFL, and MLB. In his past time, Lou loves to read manga, watch anime and critique pro-wrestling matches.