GAN triggers patent defense claims with MGM Resorts lawsuit
Supplier takes aim at US casino operator over omnichannel integration system in new claim
GAN has filed a patent infringement claim against MGM Resorts International over usage of its proprietary omnichannel technology system, GameSTACK.
The complaint, filed in the US District Court in Delaware, centres on loyalty credit integration between the M life rewards loyalty program and the BetMGM brand.
The alleged patent infringed – US patent 8,821,296 – covers the technology which connects land-based casino management to an online gambling account, determining if those loyalty credits can be transferred from online to land-based gaming, allowing or rejecting where appropriate.
GAN’s GameSTACK system, which it licenses to brick-and-mortar casinos, operates as a turnkey technology solution for real-money and social online gaming.
The Nasdaq-listed supplier has suggested that it has “suffered damages” arising from MGM’s usage of the patent technology in question, asking for the court to compel MGM to stop utilising this technology and pay GAN injunctive relief for its infringements.
GAN’s patent on the technology runs until 2033.
“MGM has had actual knowledge of the ’296 Patent since at least as early as 2016 through a contemplated business relationship between MGM and GAN involving GAN’s online gaming software-as-a-service solutions,” GAN’s complaint states.
“Further, MGM has had actual notice that its Accused System infringes the ’296 Patent for at least the reason that MGM was served with this complaint.
“MGM’s infringing acts therefore have been and are willful and GAN is therefore entitled to enhanced damages and attorneys’ fees and costs,” GAN’s complaint adds.
The suit also asked for an order ensuring that MGM be “permanently restrained” from continuing to violate its patent.
Speaking as part of the supplier’s Q4 2021 results call, GAN CEO Dermot Smurfit confirmed the claim, suggesting it would take further action to ensure its technology remains “protected and monetized” in the future.
“This is something that we, of course, prefer not to do of long-standing industry participants. But as the situation calls for it, we’re certainly not afraid to take legal action,” Smurfit told investors.
“We view these actions as investments that protect our intellectual property assets as we believe for our patented technical capabilities are unique and very much enforceable,” the GAN CEO added.
BetMGM revamped its loyalty program in February to provide deeper integration between the BetMGM brand and MGM Resorts International’s land-based portfolio, a revamp which could potentially have pushed it further into GAN’s crosshairs.