CG Technology sues DraftKings, FanDuel for patent infringement

CG Technology, the sports betting technology provider previously known as Cantor Gaming and Wagering, has launched legal action against DraftKings and FanDuel, accusing the daily fantasy sports (DFS) firms of patent infringement.

In separate complaints filed with the Nevada District Court, CG Technology said the DFS brands had violated a total of seven patents owned by the technology company, which provides land-based and online sports betting services to eight casinos in the US gambling haven of Las Vegas.

CG Technology accused DraftKings and FanDuel of infringing patents related to the transmission of identification codes and game control signals to a processor, which enables the brands to undertake tasks such as identifying players, tracking results and generating user pay records.

The complaints also reveal that CG Technology sent cease-and-desist letters to both DraftKings and FanDuel as far back as July 2014, although both brands have continued to operate as normal.

CG Technology said that it also attempted to secure a “negotiated non-litigation arrangement” with the companies, but as no deal could be struck, it has been forced to launch legal action in order to protect its “innovative technology”.

The company will now seek an injunction to stop DraftKings and FanDuel from continuing to use the technology and services in question.

CG Technology is also hoping to secure damages to cover the patent violations, in addition to further damages for DraftKings and FanDuel’s refusal to respond to the cease-and-desist letters.

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