DraftKings and Bwin in Nevada source code battle

21 April 2017

DraftKings, Bwin and 888 Holdings are leading a group of gaming companies that have asked a Nevada court to block a bid by two gambling technology firms to force them to produce their source code in Las Vegas as part of a patent suit.

Last month, CG Technology Development LLC and Interactive Games Ltd filed a motion to make the companies display the code at their attorneys’ offices in the US state.

The motion alleged that six of the seven defendant companies identified in the suit had rejected the request.

However, according to Law360, DraftKings and the group said they have already agreed to show the code at their counsel’s offices pursuant to a prior agreement.

The group also said that in December, a court ruled against the request to show the information in order to protect integrity of their code.

In addition to daily fantasy sports company DraftKings, the case involves Big Fish Games, DoubleDown Interactive, Zynga, Bwin and 888.

Setting out its opposition to the demands, the group said: “Plaintiffs’ only change is demanding that defendants’ source code be made available at the offices of defendants’ Nevada counsel rather than being provided to plaintiffs’ counsel.

“But that belated demand does nothing to alter the court’s sound reasoning for its prior decision and the proportionality of protecting defendants’ critically sensitive source code.”

The companies added: “While plaintiffs claim that their proposal would reduce plaintiffs’ costs associated with source code review and disputes, plaintiffs ignore the substantial increase in costs that plaintiffs’ proposal would impose on defendants.

“Not only would defendants who have already established source code review facilities at plaintiffs’ urging lose the time, effort, and money spent in setting up those facilities, but those defendants would be forced to incur that expense again to relocate the code review to Las Vegas.”

DraftKings’ leading competitor FanDuel has agreed to make its code available in Las Vegas after a US District Judge in January tossed claims against the company in relation to five of six of the patents at issue.

Related article: DraftKings closes $100m funding round