DraftKings Sued in New Jersey for Micro-Betting Patent Violations

A Big Legal Blow Hits DraftKings

DraftKings has been sued in New Jersey federal court for patent infringement. Filed by Texas-based Micro-Gaming Ventures, LLC, in the U.S. District Court for the District of New Jersey, the lawsuit claims DraftKings’ sportsbook platform violates five patents tied to micro-betting and location-based betting technology.

The case, leveraging DraftKings’ Hoboken office as jurisdiction, targets the operator’s in-play betting features.

Micro-betting, or in-play wagering on specific game moments like the next NFL play or MLB pitch, is central to the dispute. The five patents, developed between 2010 and 2013 by inventors Michael Shore, Alfonso Chan, Luis Ortiz, and Kermit Lopez, cover systems for managing “micro-events” within larger sports games and verifying user locations.

These innovations enable real-time bet availability and closure, critical for fast-paced micro-bets. Micro-Gaming Ventures alleges DraftKings’ platform illegally uses these patented methods, a claim that could challenge its live betting dominance.

Micro-Gaming Ventures Takes Aim

Micro-Gaming Ventures, a lesser-known entity, is flexing its intellectual property muscle. The firm argues that DraftKings’ micro-betting system infringes on patents that predate the widespread adoption of such technology in the U.S.

These patents, filed before micro-betting’s mainstream rise post-2018 PASPA repeal, cover critical functions like geolocation verification and dynamic bet timing.

The lawsuit seeks unspecified damages and an injunction, which could disrupt DraftKings’ operations if granted.