A new lawsuit filed against daily fantasy sports company PrizePicks contends it stole the proprietary technology and its product is infringing on patents owned by Vetnos Technology.
“By copying the Vetnos Technology, PrizePicks was able to launch a fixed-odds daily fantasy sports game and learn to effectively manage the risk associated with offering such a game without engaging in the significant trial, error, and loss that Vetnos’ predecessor engaged in to develop the Vetnos Technology,” the lawsuit claimed.
The lawsuit also contends that former Vetnos employee Steven Kerstein left Vetnos and took trade secrets with him when he took a role consulting for PrizePicks in 2018. Kerstein allegedly set up a meeting between Vetnos and PrizePicks CEO Adam Wexler, who allegedly said he admired the technology and intended to copy it. Kerstein currently serves as the Head of Company Relations and Marketing Intelligence.
The lawsuit further claims that Vetnos issued several warnings to PrizePicks that the company believed it was in violation of the company’s patents, including at the 2021 SBC Summit North America. PrizePicks, on the other hand, believes it has done nothing wrong.
“After years of trying unsuccessfully to get us to buy its technology and intellectual property, Vetnos has now apparently resorted to a frivolous lawsuit to change our minds. That is not a good business or legal strategy. We intend to aggressively defend against this lawsuit and point out its many errors and outright falsehoods,” Jason Barclay, Chief Legal Officer & Head of Public Policy at PrizePicks said in response to the lawsuit.
Vetnos uses its fixed-odds prop wagering technology as a Class II gaming product and works with tribal groups like the Eastern Shawnee Tribe of Oklahoma. The company also offers what it describes as a “skill-based sports matchup game” called PlaySqor.
Vetnos alleges that PrizePicks is in violation of four patents in the Vetnos name and the company is operating using the Vetnos technology for fixed-odds prop lines and to manage risk and exposure on the wagers.
PrizePicks has yet to file a response in the suit, which was filed on June 20 in the Northern Georgia District Court.