US facing sports betting operators and software suppliers will be left considering their ‘Cash Out’ options according to MarketMaker Software as a recent US patent for ‘Cash Out’ has been granted to the firm after an 11 year battle for recognition was resolved by the US Patent office.
Marketmaker Software Ltd was behind the 2007 founded Oddsfutures exchange, that designed and launched many unique pricing and proprietary features into the online gambling market. The Oddsfutures exchange ceased trading in 2013 but the company principals continued with its patent application process with a view to potential future activity focused on a legal and regulated US online sports betting space.
Said the company in a statement: “Regarded as a key revenue and retention driver for in-play sports betting worldwide, ‘Cash Out’ currently comprises approximately 65% of global in play sports betting liquidity. For the US regulated market, ‘Cash Out’ numbers are already at 20% of gross revenue for some NJ based providers.”
“It’s been a long road, and we’re glad we’ve hung there with our belief that the online sports betting market in the US would be regulated,” said Marc Butterly, CEO of Marketmaker Software. “It’s come too late for us to make a dent in the market in terms of the Exchange, but with Finnegan (IP law firm) as a key partner we’re hugely keen to build a successful and sustainable software licensing business that supports the ambitions of the most important and innovative suppliers and operators in the US sports betting space.”
He added: “What are our current plans? Well, we’ve kept a low profile, as there’s so much noise in the new regulated US space, and we’re aware of other third parties who’ve attempted to claim the ‘Cash Out’ space indirectly, but this patent grant has removed any confusion around where the IP sits. Our plan is to work with a partner group of US facing operators and software providers that plan to maximize the regulated market opportunity by licensing ‘Cash Out’ from us.
“Working without IP cover will create a lot of risk for suppliers, not least embarrassment with their customers. We have kicked off early stage talks with a number of the most interesting companies in the space and hope to announce a marquee partner soon. We believe that any company that can announce that they are the first company to legally offer cashout IP to US players will have significant competitive advantage.”
Marketmaker’s cashout IP was filed with an effective date of April/July 2007. Under US Federal Law, this ‘priority date of 2007’ means any ‘Cash Out’ related patents filed after 2007 asserted through ‘cease and desist’ letters are of little legal significance. However, verified use, copy, simulation or UX based execution of the ‘Cash Out’ Button for an existing sports bet, for the benefit of, in, or delivered to a USA based consumer is potentially an infringement of Marketmaker’s 2007 filed IP.
The firm stated: “Not owning the ‘Cash Out’ IP, which is protected under US Federal Law, whilst providing a third party ‘Cash Out’ services may put technology providers in breach of contract indemnity warranties with casino partners, B2B customers and operators. Licensing rights to the ‘Cash Out’ IP will give operators a commercial edge in a marketplace keen to do early expansion cheaply and without litigation risk.”
