CG Technology Sues FanDuel and DraftsKings for Several Patent Infringements

Gaming technology and solutions provider CG Technoly has filed a law suit against the daily fantasy sports operators, DraftKings and FanDuel, over several CG Technology patents.

Just last week, CG Technology filed two separate complaints against the DFS operators, FanDuel and DraftKings, in Nevada District Court. In the law suit, CG Tech accused the DFS companies of violating a total of seven patents owned by them. The suit also indicated that CG Tech had sent cease and desist letters to both the DFS companies, almost two years ago, in July 2014 but were refused. Although CG Technology was hoping to reach a “negotiated non-litigation arrangement” with the fantasy sports providers, they were left with no other choice but to take stronger legal actions to protect their “innovative technology.”  The suit also listed two co-plaintiffs – the Interactive Games LLC, based in Nevada, USA and Interactive Games Ltd, which is based in the UK.

About CT Technology

CG Technology, formerly known as Cantor Gaming is an innovative gaming technology solutions provider for lottery, gaming, race and sports wagering worldwide. They specialize in providing secure, scalable, mobile technology and risk management solutions for all types of gaming businesses. They boast the highest standards of regulatory compliance, transactional security and customer experience. While the company is headquartered in Las Vegas, Nevada, the continues to expand into new global markets

The case

CG Technology, which provides both land-based and online sportsbook technology for eight Las Vegas casinos, said that the DFS operators were infringing on patents on the technology that is used to cover the transmission of identification codes and game control signals to a processor, which allows the sites to carry out important and necessary tasks such as, identifying players, tracking their gaming results and generating accurate pay records for individual players, as well as other information, which are helpful for building databases that help identify marketing targets for the casinos.

With this lawsuit against the DFS corporations, CG Technology and their co-plaintiffs hope to issue an injunction that will ban DraftKings and FanDuel from using the technology in question for any further length of time. They also wish to claim damages to cover the patent violations and additional damages that have resulted from the operators’ refusal to abide by the cease-and-desist demand from two years ago.

At the same time…

In other news, the DFS regulatory front has been eventful as usual. House representative in Minnesota have voted to approve a bill to explicitly legalize DFS in the state, provided that the operators put in place all the new consumer protection measures, which include a prohibition on scripting tools, the number of matched one contestant can enter each month and other rules such as the new age restrictions. However, the bill has to clear at least one more committee before the full senate is able to vote on the issue to extricate a verdict.

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