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DraftKings is now facing a legal challenge that could have wide implications for its sportsbook platform. Micro-Gaming Ventures, a Texas-based betting technology firm, has filed a lawsuit accusing DraftKings of infringing on five separate patents.
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The case was submitted to the US District Court in New Jersey, which Micro-Gaming says holds jurisdiction due to the size of DraftKings’ operations in the state. The lawsuit requests a trial by jury, claiming that DraftKings has continued to use patented technology without permission.
Micro-Gaming’s patent filings date back to August 2010. According to court documents, the company worked in the early 2010s to create a system that allows remote users to place bets on “micro-events” within a game — short in-game moments like individual plays or specific outcomes.
The company stated that DraftKings has “directly infringed” its patents by developing and operating the DraftKings Sportsbook app and website. These platforms, the suit alleges, use methods and systems that Micro-Gaming believes fall under its protected technologies. The complaint also claims the continued use of this tech has caused financial harm.
As the legal case unfolds, DraftKings continues to grow its content partnerships. The company recently announced a new agreement with MetaBet, a provider of sports betting engagement tools. MetaBet said its contextual widgets will now be integrated into DraftKings Network — also known as “The Action Spot.”
The network, which is focused on delivering betting and fantasy analysis, provides users with tools, insights, and expert content to support their decisions across a range of sports.
Micro-Gaming Ventures believes DraftKings’ innovations are built on patented concepts it introduced more than a decade ago. Whether the court agrees remains to be seen, but the outcome could set a precedent for how betting tech is used and protected going forward.