GeoComply, the Canadian company that has a near monopoly on providing geolocation services to gaming operators in North America, has filed a lawsuit in Delaware federal court claiming patent infringement against XPoint Tech, according to multiple media reports. The lawsuit centers around technology developed and patented by Anna Sainsbury, one of the founders and the CEO of GeoComply.
In the lawsuit, GeoComply claims that XPoint, which is licensed in New Jersey, is infringing on the company’s technology, which allows for the collection of geolocation data and the identification of programs on a device and then uses multiple servers to pinpoint the location of a device. XPoint provides geolocation services for Sporttrade, a sports betting exchange, and the PlayStar iGaming app, both of which are live in New Jersey.
Every digital sports betting or online NJ casino operator must use geolocation services to ensure that customers are within the boundaries of where legal wagering is offered. States or other businesses may also contract for such services.
GeoComply filed for its patent in 2012 — six years before the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act, making wagering a states’ rights issue. The patent was granted in 2016 and is set to expire in 2033.
Who doesn’t use GeoComply?
Every major sports betting operator in North America uses GeoComply’s technology, including Barstool Sportsbook, BetMGM, Caesars Sportsbook, DraftKings, FanDuel, and PointsBet. One or more of those companies is live in nearly every legal U.S. gaming state, including New Jersey, as well as in Ontario, Canada, where wagering launched in April.
“This action is about protecting GeoComply’s proprietary technology,” a GeoComply said in a statement. “We welcome healthy competition and new ideas in the marketplace and the ability to distinguish our leading solutions and technology from others.
“We also respect, and expect others to respect, the valuable intellectual property that companies like ours spend a lot of time, effort, and money developing. We are confident in the merits of our case.”
GeoComply seeks a permanent injunction to keep XPoint from using the technology and operating. The company also requested a court order to give it access to XPoint’s source code.
XPoint Tech was founded in 2019 and has its U.S. offices in Miami. The company lists among its goals the idea that geofencing should be viewed as a “new business opportunity” rather than as a “utility.”
Image courtesy of GeoComply