Two major names in online sports betting are now facing twin federal lawsuits filed on the same day, as a smaller tech firm accuses them of using its patented systems without authorization.
Interactive Games LLC brought separate cases against FanDuel and Betfair in New Jersey and DraftKings in Massachusetts. In both filings, the company claims the operators are relying on mobile wagering technology that traces back to patents it now controls.
The lawsuits state that Interactive Games’ predecessor, Cantor Gaming, “was the first to develop systems that allowed users to gamble, place sports wagers, and play casino games on mobile devices.” The company argues those early breakthroughs became the backbone of today’s mobile betting ecosystem.
Interactive Games fight against DraftKings and FanDuel rooted in early smartphone technology
The filings walk through the technical hurdles developers faced in the mid-2000s, when smartphones were still new and unproven for gambling. Engineers had to figure out how to confirm a user’s identity, ensure they were physically located in a legal jurisdiction, and detect whether a device had been altered or “rooted.”
Complaint excerpt alleges willful patent infringement and seeks damages and court-ordered relief. Credit: Interactive Games vs FanDuel and Betfair Interactive US
At that point, existing gambling setups depended heavily on in-person verification or stationary terminals, which didn’t translate to mobile use. According to the documents, there wasn’t a ready-made solution for secure, compliant wagering on handheld devices.
Cantor Gaming, the lawsuits claim, built systems to close those gaps. The technology could identify unauthorized device changes, track behavior patterns to spot fraud, and confirm location using multiple points instead of relying on a single signal.
The gaming firm says those inventions were later patented and are now being used without permission. In both lawsuits, the company alleges FanDuel and DraftKings “have been developing, distributing, and profiting from” their apps in ways that infringe those patents “without a license.”
The New Jersey case targets a wide range of FanDuel products, including its sportsbook, casino, fantasy, and racing apps, and points to five specific patents. The Massachusetts filing mirrors those claims, focusing on DraftKings’ betting and gaming platforms.
Each complaint also showcases the companies’ operational ties to the states where the lawsuits were filed. FanDuel and Betfair are described as running and developing products in New Jersey, while DraftKings is said to base key engineering work in Boston.
This is not the first time an intellectual property case has affected a betting firm. DraftKings is also facing a patent infringement lawsuit tied to its micro-betting features, which allow users to wager on rapid, in-game events. The case alleges the company used patented technology covering real-time betting mechanics without proper authorization. Another recent dispute involved a Light & Wonder slot machine, which was pulled from circulation amid controversy.
Interactive Games is now seeking damages in both cases and has requested jury trials.
Featured image: FanDuel / DraftKings
