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Colossus sues DraftKings for "cash out" patent infringement

Colossus sues DraftKings for "cash out" patent infringement

Posted: December 3, 2021, 04:48 NS.

Last updated: December 3, 2021, 10:24 NS.

Philip Conneller

UK-based betting outfit Colossus Bets is suing DraftKings in a federal court in Delaware. An American company claims to have infringed its patent rights by offering a "cash out" feature through an online sportsbook.

Colossus Bets
Bernard Marantelli, founder of Colossus Bets, said in the above statement: His company takes its intellectual property "very seriously" and protects it in court. (image:SBC News)

This is the second patent infringement proceeding filed against DraftKings this year.

London-based technology suppliers specialize in B2B pool betting. It entered the US market in 2019 and was licensed first in North Dakota and then in Oregon as a service provider.

However, the proceedings state that the United States Patent and Trademark Office (USPTO) has issued a patent to Bernard Marantelli, the founder of Colossus Bets 2014. The company claims that the patent confirms that the technology used in DraftKings' cashout feature is the intellectual property of US colossal betting.

How does cashout work with betting?

The Cash Out option allows bettors to reclaim their stakes at any time during the event. Imagine a bet that a soccer team will win 1-0. With 20 play hours, the score is as expected, but the opposing team is now threatening to level.

With cash out, you have the option to receive and execute money. However, it will be less than if you watched the game and stayed 1-0.

Colossus Bets certainly did not invent this concept. Betfair did. The cash-out feature was launched on the 2011 Betfair betting exchange and rolled out in its fixed odds sportsbook 2013.

However, in the proceedings, Colossus Bets said, "At the time of the invention, it was neither conventional nor common, but rather time."

From 2021, the company issued a new patent when it updated this technology.

DraftKings claims to have adopted this technology in its mobile sports betting service since its launch in New Jersey in August 2018.

Huge complaint

According to Marantelli, the Colossus Bets first contacted DraftKings for alleged violations in 2018, and since then "notice of numerous ongoing infringements."

We take intellectual property very seriously. " Marantelli said in a statement."This is the next step towards our protection. Rights and income across the US industry."

The Colossus Bets has claimed patents on all accepted US bets using the cashout feature since the US Supreme Court rejected the federal ban on sports betting more than three years ago.

Importantly, online betting giant Bet365 has signed a license agreement with Colossus Bets. 2019.

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