The geolocating service market for online sports betting sites and iGaming just became more competitive, as a federal court has granted a motion to dismiss GeoComply’s patent infringement claim against Xpoint.
Friday’s decision also invalidated GeoComply’s patent, potentially opening the market up to even more competitors. To comply with state laws, online sportsbooks and iGaming providers must be able to verify customers are within a legal jurisdiction.
Given the expansion of legal sports betting across the US, geolocation is a lucrative and growing industry.
GeoComply is the market leader in geolocation
GeoComply’s solutions are currently used by leading operators such as DraftKings, FanDuel, and BetMGM. During Super Bowl LVII weekend, GeoComply conducted roughly 100 million geolocation checks.
In the last few years, however, a GeoComply competitor has emerged. In 2022, Xpoint won a few noteworthy geolocation contracts. Soon after, GeoComply sued the fledgling rival, claiming Xpoint was using GeoComply’s patented methodology for identifying the location of online bettors.
In 2016, GeoComply received a patent for its technique to locate online bettors. Friday’s decision refuted that, as the court determined that GeoComply’s patent was an “unpatentable abstract idea.”
Xpoint is satisfied with the outcome
Xpoint CEO Marvin Sanderson was pleased with Judge Bryson’s ruling.
"From the beginning of this litigation Xpoint has maintained that it has conducted its business legally and appropriately", said Sanderson.
Meanwhile, not all the claims against Xpoint were dismissed. There are still some that might get argued inside a courtroom, and in that light, a GeoComply spokesperson issued the following statement:
"It is important to note that today’s decision only concerns technical patent matters and does not address any of the various other troubling matters identified in the 2022 report and elsewhere. All of those questions will be answered. We respectfully disagree with this particular decision and are evaluating the next steps in all available forums.”
