GAN sues MGM for infringement of customer loyalty technology patent

Posted: March 23, 2022, 7:55 a.m.

Last update: March 23, 2022, 07:55.

Gaming technology provider GAN Ltd. (NASDAQ:GAN) is suing MGM Resorts International (NYSE:MGM), alleging that the Mandalay Bay operator infringes on one of the technology company’s patents to link its casino and sportsbook customer loyalty platforms.

Actor Jamie Foxx in a commercial for BetMGM. GAN is suing the game company, alleging patent infringement. (Picture: The temperature)

In its complaint filed Monday in the United States District Court for the District of Delaware, GAN says the dispute concerns the ‘296 patent, for which the company was granted protection by the United States Patent and Trademark Office (USPOT) in September. . This patent is titled “Network Gaming System and Casino Management System Link”.

The ‘296 patent claims specific technological improvements over prior land-based loyalty rewards systems or customer data management and relates to technologies connecting networks of Internet gaming systems with one or more management systems to manage customer data, loyalty programs and other data. according to the legal record.

Put simply, GAN claims that its patent-protected technology helps casino operators more effectively link land-based casino rewards programs to comparable online offerings. The UK-based company claims MGM is infringing the ‘296 patent to strengthen ties between its traditional casino and BetMGM rewards platforms.

GAN claims MGM was aware of the technology

GAN claims that MGM was aware of its technology as early as 2016, when the two parties considered a relationship around “GAN’s online gaming software-as-a-service solutions”.

Plaintiff asserts that due to MGM’s long-standing knowledge of GAN technology, the casino operator’s actions “constitute constructive and/or contributory infringement.”

With the dramatic rise of the US iGaming and sports betting industries, there is an incentive for operators to better connect associated rewards platforms with traditional customer loyalty programs. In recent months, some casino company management teams have noted that punters accumulating points online, whether through online casinos or sportsbooks, are more likely to visit an operator’s land-based sites.

In February, MGM introduced MGM Rewards as a replacement for M life Rewards. This was followed by the launch of the BetMGM Rewards program. Under the new program, punters earn BetMGM Rewards Points and MGM Rewards Tier Credits with every wager placed.

BetMGM, a 50/50 joint venture between MGM Resorts and British gaming giant Entain Plc., is the largest online casino company in the United States and consistently ranks among the top three online sports betting operators on the markets in which it operates.

GAN says he’s in pain, MGM wins

GAN believes MGM will continue to infringe the patent unless a court stops it from doing so. The plaintiff adds that the Bellagio operator was advised that he was infringing the patent, stating that his actions “were and are deliberate”, entitling GAN to damages and legal costs under various codes. Americans.

“Based on information and beliefs, MGM has derived and received, and will continue to derive and receive, gains, benefits and benefits from the foregoing acts of infringement in an amount not currently known to GAN MGM’s acts of infringement have caused damages to GAN, and GAN is entitled to monetary relief in an amount to be determined at trial,” according to the legal filing.

GAN seeks damages in the form of “at least a reasonable royalty” to be determined at trial.

Joseph P. Harris