Cantor Affiliate Files Patent Lawsuits Against DraftKings and FanDuel

An affiliate of “iconic global financial institution with world-class talent, providing specialized sector expertise, innovative products, and personalized solutions”, Cantor Fitzgerald, has launched new legal action against two of the biggest names in US sports betting.

Interactive Games LLC is accusing DraftKings and FanDuel of using patented technology without permission, allegedly infringing five patents originally developed by the now-defunct Cantor Gaming, says Reuters.

The Controversy

The lawsuits, filed in federal courts in New Jersey and Massachusetts, claim that the patents cover aspects of mobile betting technology, a core part of modern online sportsbooks. This is where things get interesting: two of those patents were co-invented by Howard Lutnick during his time as chief executive officer of Cantor Fitzgerald.

Lutnick stepped down from his leadership roles at Cantor and Interactive Games after being confirmed as US Commerce Secretary under Donald Trump. At the time, the company said he had divested from all business interests tied to Cantor.

“Secretary Lutnick has fully complied with the terms of his ethics agreement, including all divestiture and recusal requirements, and will continue to do so,” a Commerce Department spokesperson said.

Rare Occurence 

The case could, therefore, take an unusual turn due to Lutnick’s current position of head of the Commerce Department, responsible for overseeing the United States Patent and Trademark Office, which handles patent reviews. 

In many infringement cases, defendants ask the agency to re-examine the validity of patents in question.

If DraftKings or FanDuel choose to go on that path, it could create a rare situation where patents linked to a sitting cabinet official are reviewed by an agency under his authority.

Legal experts say the situation is uncommon but not necessarily improper. Dennis Crouch, a law professor at the University of Missouri, noted that Lutnick is listed as an inventor on hundreds of patents in financial technology and online gaming.

Interactive Games is seeking monetary damages, though the amount has not been disclosed. The company is not new to these claims, having previously sued the same sportsbook companies over related technology a decade ago.The latest lawsuits now also name Betfair as a defendant in the New Jersey filing.