DraftKings Sued Over Alleged Micro-Betting Patent Infringement

DraftKings is currently embroiled in a legal dispute with Micro-Gaming Ventures, a Texas-based company specializing in micro-betting technology. The lawsuit, filed in the U.S. District Court for the District of New Jersey, accuses the popular sports betting platform of infringing on five key patents developed by Micro-Gaming Ventures. These patents cover various aspects of micro-betting technology, including location-based wagering and the management of micro-events during live sports broadcasts.

The Alleged Patent Infringement

Micro-Gaming Ventures, which has been developing micro-betting technologies since the early 2010s, claims that DraftKings has unlawfully used its patented innovations. The company argues that it was the pioneer in implementing systems for micro-event wagering, a form of betting where s can place wagers on specific moments within a larger sporting event. Examples include betting on the outcome of the next play in a football game or the next pitch in a baseball match.

According to the lawsuit, Micro-Gaming Ventures holds five patents related to these technologies, which they argue have significantly improved the management and operation of micro-bets within larger sporting events. These advancements include the ability to determine when a micro-bet is available and when it has closed, as well as the geographic authentication of s. The complaint further claims that these technologies were groundbreaking at the time they were developed and were not widely implemented before Micro-Gaming Ventures’ innovation.

The Timeline of the Dispute

The patents in question were developed between 2010 and 2013, predating the widespread adoption of micro-betting technology in the United States. At the time, micro-betting was not a common practice, and there was no existing technology that addressed wagering on specific in-game moments or location-based bet authorization. Micro-Gaming Ventures asserts that it laid the groundwork for what has now become a major segment of the U.S. sports betting industry.

The company argues that DraftKings, through its “DraftKings Sportsbook” platform, has been using these patented technologies without authorization, including on its mobile app and website. In particular, the lawsuit highlights the platform’s ability to manage micro-bets, randomly offer new micro-bet opportunities, and determine the geographical eligibility of bettors. These features, Micro-Gaming Ventures claims, infringe on the patented inventions of its founders.

DraftKings’ Acquisition of SimpleBet

In a notable twist, the lawsuit also references DraftKings’ $195 million acquisition of the micro-betting provider SimpleBet in 2024. The acquisition, according to Micro-Gaming Ventures, further emphasizes the commercial value of micro-betting technology and the relevance of the patents it holds. The timing of these developments is particularly significant, as they occurred well before the Supreme Court’s 2018 ruling in Murphy v. NCAA, which legalized sports betting across the U.S.

Micro-Gaming Ventures is seeking damages for the alleged past infringement of its patents and is calling for an ing of all the infringing activities. The company is also requesting a jury trial, hoping for a favorable ruling that would include compensation for both past and future infringements.

New Jersey Jurisdiction and Legal Grounds

New Jersey was chosen as the venue for the lawsuit due to DraftKings’ established presence in the state, where it operates both its business and an office in Hoboken. The state is also a key location for the broader U.S. sports betting industry, making it a fitting jurisdiction for such a case.

Micro-Betting’s Growing Influence in U.S. Sports Betting

Micro-betting, which was described as the industry’s next landmark in 2023 which involves placing bets on discrete moments within a larger event, has rapidly gained traction in the U.S. sports betting market. It is increasingly seen as a crucial growth area, with analysts predicting it will continue to be a key driver of the sector in the coming years. As this niche market expands, the legal and commercial implications of patent disputes such as this one are likely to be felt more acutely across the industry.

The Future of Micro-Betting Patents

The outcome of this lawsuit could have significant ramifications for DraftKings and the broader micro-betting landscape. If Micro-Gaming Ventures is successful, it could set a precedent for future patent disputes within the rapidly evolving sports betting market. For now, the case remains ongoing, and the sports betting giant will be required to respond to the allegations in court.

Source:

DraftKings sued by Micro-Gaming Ventures for patent infringement, gamblinginsider.com, May 13, 2025