Patent Lawsuit Targets Popular Cash Out Feature Offered at Top Sportsbooks

Written by:
C Costigan
Published on:
Jun/21/2024

Gambling911.com can now reveal exclusively that a group of inventors are suing Wire Industries Inc (Doing Business as WagerWire) for patent infringement.

betus-michael-vick(1).png

The patent involves a popular feature offered at some of the top US-facing sportsbooks including DraftKings and ESPN Bet, among others.

According to the lawsuit,  the inventions as claimed further overcome the deficiencies existing in the art as of the date of invention by providing a means by which gambling platform providers could “obtain additional revenue from wagers already placed by collecting a commission on exchanged tickets.” See id. at 4:23-32. Still further, the inventions as claimed promote higher revenues for platform operators because, as explained by the patentees: “If users are able to liquidate part of their initial investments, users may reinvest their liquidated funds into additional wagers, resulting in more income for the wagering service.”

"If you are a an online casino operator, online sportsbook operator, fantasy sports operator, marketplace, exchange wager platform, etc. and you are offering the exchange of multiple iterations of the same online wager transaction?  YOU ARE INFRINGING OUR PATENTS !!!," Get Out Ahead LLC warns.

"In layman's terms, Our IP covers the reselling of an active wager (all or fractions of same) back to the house (known in the industry as “cash-out”) or to another person or entity.  Again, YOU ARE INFRINGING OUR PATENTS !!!"

Get Out Ahead LLC posted about its invention way back in 2016 (as seen in the YouTube video below).

Get Out Ahead LLC is seeking "a reasonable royalty", fees, expenses and interests as well as future royalties.

On the legal front, they do not intend to stop with WagerWire.

"Get Out Ahead LLC Will prosecute infringers on its IP to the fullest extent of the law."

When asked whether they intend to take action against sportsbooks like DraftKings and ESPN Bet specifically, Get Out Ahead LLC simply stated that those companies are offering the cash-out feature without having sought permission to do so from the patent holder, Get Out Ahead LLC.

WagerWire was funded early on by the co-owner of the Miami Marlins, Roger Ehrenberg.  Other WagerWire investors include Cardinal Sports Capital and 305 Ventures, the firm owned by Simplebet founder Joey Levy, who later went on to found betr with YouTube influencer and boxer Jake Paul.

WagerWire says it holds affiliate vendor licences in 16 US states as well as Washington DC, Puerto Rico and Ontario.

The vast majority of patent lawsuits settle before trial—95% to 97% of them.

chris-may-24.png

Gambling News

Is Circa Sports a Reputable App to Use in Kentucky?

Is Circa Sports a Reputable App to Use in Kentucky?

The Circa Sports app comes courtesy of the fine folks behind Circa Sports in Las Vegas.  They are among the most respected betting firms and come highly recommended by the pros thanks to their willingness to take all sizes of wagers. 

Syndicate