Sports betting operator DraftKings is facing a patent infringement lawsuit filed in New Jersey federal court concerning its micro-betting offerings. The legal action, brought by Texas-based Micro-Gaming Ventures, LLC, alleges that DraftKings’ platform utilises technology covered by patents related to micro-betting and location-based wagering.

The lawsuit, filed on Friday, May 9, 2025, in the US District Court for the District of New Jersey, asserts that DraftKings’ sportsbook platform infringes upon five specific patents. Micro-betting, also known as in-play betting, is a rapidly growing vertical within US sports betting that allows users to place wagers on specific, granular moments occurring within a larger sporting event, such as the outcome of the next pitch in a baseball game or the result of the next play in a football game. Analysts have previously highlighted this segment as likely to become a key growth driver in the years ahead.

According to the complaint filed by Micro-Gaming Ventures, as reported by iGaming Times, the patented inventions provide several advantages over prior art in the field. These advantages reportedly include improved operations for managing micro-bets within the context of larger macro-events and for authorising users based on their geographic locations. The complaint highlights that one significant advantage claimed by the patented inventions is a method to determine, via a configured computer, precisely when a micro-bet becomes available to bettors and subsequently when it closes to additional wagers. This functionality is described as increasingly important due to the rapid, moment-by-moment nature of micro-bets.

Background of the Patents

The patents central to the lawsuit were reportedly developed by inventors Michael Shore, Alfonso Chan, Luis Ortiz, and Kermit Lopez between 2010 and 2013. This timeframe is notable as it predates the widespread adoption of micro-betting technology in the United States and occurred years before key legal developments that paved the way for the expansion of regulated sports betting, such as New Jersey’s legalisation of online gambling in February 2013 and the US Supreme Court’s decision in Murphy v. NCAA in 2018. The patents are described as covering systems and methods for managing bets placed on “micro-events” occurring within larger games, as well as for authenticating users based on their geographic location, a crucial element for compliance in regulated markets. The lawsuit reportedly points to DraftKings’ $195 million acquisition of micro-betting provider SimpleBet in 2024 as evidence of the significant commercial value associated with this technology.

Specific Allegations and Requested Remedies

Micro-Gaming Ventures alleges that DraftKings’ mobile app and website specifically infringe upon claims within these patents. The alleged areas of infringement include functionalities related to determining when micro-bets are available or closed to additional bettors, randomising the available micro-bets presented to users, and authorising users based on their geographic location, a necessary process to ensure compliance with state-level regulations.

Micro-Gaming Ventures, LLC is seeking remedies for the alleged infringement, including monetary damages for past infringing acts and an accounting of all such acts by DraftKings. The company has also requested a jury trial to decide the case. The lawsuit cites DraftKings’ maintenance of an office in Hoboken, New Jersey, as grounds for filing the action in the New Jersey federal district court.

In conclusion, the lawsuit brought against DraftKings by Micro-Gaming Ventures, LLC represents a legal challenge based on patent claims related to core micro-betting technology and location verification that date back over a decade. The case highlights the increasing complexity and potential for legal disputes surrounding the intellectual property underpinning the technological advancements within the rapidly growing US sports betting market.