In a landmark courtroom victory that could have a lasting impact on the US gaming tech sector, Tipping Point Gaming LLC has emerged victorious after a $20 million jury verdict against Caesars Entertainment. The protracted legal action revolved around Tipping Point’s allegations of interference and intellectual property sabotage.
Tipping Point Alleged Deliberate Sabotage
The Clark County District Court jury delivered the verdict late last week, with Judge Joe Hardy Jr. awarding Tipping Point $15 million in compensatory damages and an additional $5 million in punitive damages. The small technology company, led by industry innovator Sam Johnson, successfully defended its case, prevailing over one of the USA’s leading gambling powerhouses.
The lawsuit, filed in 2018, revolved around a collaboration between the two companies, bringing Tipping Point’s patented slot gaming enhancements to market. While Johnson was confident that these innovative solutions could have disrupted the status quo within the broader gambling industry, the deal fell through when Caesars allegedly delayed the project and later backed out completely.
Caesars’ sudden backtracking sparked allegations that the casino giant deliberately sabotaged the venture. Court documents revealed internal Caesars’ emails that described concerted efforts to stall the deployment of Tipping Point’s products and prevent similar deals with other gambling companies. According to Johnson, such evidence proved crucial in securing what he describes as a David versus Goliath win.
Johnson Noted His Innovations Could Have Transformed the Market
This legal dispute revolved around a patented side-bet system designed to increase slot machine revenue and player engagement, allowing users to make additional bets during the game. While Johnson believes the technology would have seen broad adoption after the Caesars partnership, the unsuccessful deal doomed it to obscurity. He argues the gambling giant’s actions rendered the innovation commercially useless, leading to Tipping Point’s bankruptcy during the COVID outbreak.
What we had was a game changer. We would have transformed the industry. However, once Caesars tainted Tipping Point’s IP, instead of Caesars being the market maker Tipping Point relied on, Caesars prevented a market from ever being made.
Sam Johnson, Tipping Point founder
While Johnson described the legal victory as a win for all small gaming innovators, he lamented that it was not enough to undo the damage suffered by the Tipping Point team. He noted that the court’s verdict was a long-overdue recognition of the damage done and hoped the precedent could help other small innovators avoid a similar fate.
This verdict should go a long way toward making Nevada a haven for the best innovators in the world.
Sam Johnson, Tipping Point founder
Adding to the financial blow for Caesars, statutory interest under Nevada law will likely add a considerable sum to the final payment, perhaps over $10 million, depending on how long the company takes to pay. The case has also renewed debates on the precarious position of small innovators in the gaming business, especially in technology-forward markets like Nevada.