It’s not a good week for the famous DraftKings. The United States Patent and Trademark Office decided that the claims that DraftKings violated some of the inter parties (IP) related to the checkout. 

Violation of IP:

In December 2021, Colossus Bets decided to sue the industry giant and to try to prove that they violated the law about the patents. The process that began back then is finally over, and the authorities ruled in favor of Colossus Bets.

The company’s owner, Bernard Marantelli, claimed that DraftKings violated the IP four times. Marantelli became famous in the industry after developing the cashout technology, which was among the first ones in the whole industry. Diogenes Limited, the company from the UK, helped Marantelli in developing it, and now they joined forces against DraftKings once again.

The legal challenges have been present since 2016, and their main role is to regulate all digital products and offerings, including desktop devices, mobile phones, as well as specialized kiosks.

Dewaal case:

DraftKings compared the new case to the old one, known as Dewaal when the players were able to cash out the money from slot machines or video poker machines during the bonus rounds. However, in this case, the actions weren’t occurring in real time, which made a great difference between the cases. The judges justified their claims with the fact that in the Dewaal case, the bets were set ahead of time for the event in question.

DraftKings’ mapping in the Dewaal case, although a bit similar to the most recent one, gave the players an opportunity to decide if they wanted to cash out the prizes. Judges commented: “DeWaal discloses that, after each round of the bonus game, the central controller may offer advancing players an opportunity to quit the bonus game in exchange for an award.”

Serious impact on the business:

In July 2022, the District of Delaware’s federal judge ruled in favor of DraftKings, but this new decision changed everything. This challenge will have a serious impact on DraftKings since they might be obligated to pay the damage worth the gross revenue the company earned for bets placed through Diogenes’ platform. The exact worth is not known yet, but the speculations are that it can be more than $1 billion. 

Marantelli claims it’s only the beginning, and the company is determined to save its intellectual property. He said: “We take our intellectual property very seriously. This is the next step towards protecting our rights and income across the industry in the US.”