Modern Gaming, Inc. v. Sockeye Software, LLC

CourtDistrict Court, D. Colorado
DecidedMarch 2, 2026
Docket1:23-cv-01583
StatusUnknown

This text of Modern Gaming, Inc. v. Sockeye Software, LLC (Modern Gaming, Inc. v. Sockeye Software, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Modern Gaming, Inc. v. Sockeye Software, LLC, (D. Colo. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Chief Judge Philip A. Brimmer

Civil Action No. 23-cv-01583-PAB-STV

MODERN GAMING, INC.,

Plaintiff,

v.

SOCKEYE SOFTWARE, LLC, and,

Defendant.

ORDER

This matter comes before the Court on Plaintiff’s Motion for Summary Judgment on all Counterclaims [Docket No. 156]. Plaintiff Modern Gaming, Inc. (“Modern”) seeks summary judgment pursuant to Federal Rule of Civil Procedure 56 on the counterclaims brought against it by defendant Sockeye Software, LLC (“Sockeye”) for promissory estoppel, breach of the implied covenant of good faith and fair dealing, and fraud in the inducement. Docket No. 156 at 1-3. Sockeye filed a response. Docket No. 208. Modern filed a reply. Docket No. 230. The Court has jurisdiction pursuant to 28 U.S.C. § 1332. I. UNDISPUTED FACTS Modern manufactures and distributes computerized gaming devices to casinos. Docket No. 156 at 3, ¶ 1.1 Sockeye develops gaming software. Id., ¶ 2. Modern’s

1 Sockeye denies this fact in part, stating that, “[s]ince at least 2013, Modern has manufactured and distributed gaming devices exclusively in the Louisiana VLT market.” owner, Rory Fradella, and Modern’s Chief Operating Officer, Jason deGrandmaison, have each worked in the gaming industry for decades. Id., ¶ 3. Modern has placed over 3,400 video poker gaming units in the Louisiana video poker gaming market as of 2025. Id., ¶ 4.2 Modern has historically expanded to support business opportunities as they arose. Id., ¶ 5.3 Prior to the 2019 License Agreement, Modern had done business

with casinos in various states, including Florida and Alabama. Id., ¶ 6.4 In 2018, Sockeye was developing Big Bear Poker (“BBP”), a video poker game using its software. Id., ¶ 7.5 Mr. Seymour approached Modern about an opportunity to

Docket No. 208 at 2, ¶ 1. The Court finds this nonresponsive to the fact asserted and deems this fact admitted. 2 Sockeye denies this fact, stating that “Modern has placed fewer than 3,400 gaming devices in Louisiana since 2013, inclusive of machines that have been retired, are obsolete, or otherwise unaccounted for.” Docket No. 208 at 2, ¶ 4. The chart Sockeye cites as evidence of this dispute goes back only as far as 2015. See Docket No. 208-3 at 2. The Court finds this objection nonresponsive and deems the fact admitted. The exact number of machines placed by Modern is not material to the Court’s analysis. 3 Sockeye disputes this fact in a lengthy statement about Modern’s ability to do business in the New York market. Docket No. 208 at 2-3, ¶ 5. The Court finds this nonresponsive to the fact asserted and deems this fact admitted. 4 Sockeye disputes this fact, stating that “Sockeye incorporates [the response discussed in the prior footnote regarding the New York market]. In addition, prior to 2013, Modern had sold ‘some’ neutered machines to Victoryland (Alabama) but could not testify about its business in Florida.” Docket No. 208 at 3, ¶ 6. The Court has reviewed the portion of the deposition cited by both Modern and Sockeye and find that it supports Modern’s assertion and does not support Sockeye’s effort to dispute the fact. See Docket No. 208-1 at 29-31, 121:16-123:13. Mr. deGrandmaison testified about Modern’s history of doing business in Florida and Alabama. Id. The fact that Mr. deGrandmaison did not know all of the details about past business in Florida, see id., is not the same as “not testify[ing]” about it. 5 Sockeye disputes this fact in part, stating that “Big Bear Poker is not a ‘video poker game using its Software,’ which Modern defines as ‘Sockeye’s patented platform development software.’ Sockeye’s Platform Development Software, as defined in the Agreement, is not patented and is distinct from its patented mathematical formulae.” Docket No. 208 at 3, ¶ 7 (internal citation omitted). The parties litigated their disagreements regarding terminology such as “software” and “platform development software” in their briefing on Sockeye’s motion for summary judgment on Modern’s place games based on Sockeye’s software. Id. at 3-4, ¶ 8.6 Modern and Sockeye entered into a “License Agreement” on December 3, 2019. Id. at 4, ¶ 10. The License Agreement, as amended, granted Modern an exclusive license to use Sockeye’s Software in Florida, Alabama, New York, Louisiana, North Carolina, and the Chickasaw Nation in Oklahoma. Id., ¶ 11.7 The License Agreement states that Sockeye “grants to

[Modern] . . . a license to use the [software] as indicated in this Agreement and subject to the terms of this Agreement.” Id., ¶ 12.8 Before the License Agreement was in place, from at least April through October 2019, Modern initiated and maintained conversations with contacts in the New York gaming market to discuss the potential to place BBP in New York. Id. at 5, ¶ 17.9 Modern’s contacts in the New York gaming market provided Modern a copy of a draft

claims against it. See, e.g., Docket No. 255 at 2-4, 7-13. The Court interpreted the contract and determined that, whatever the exact terminology was in the License Agreement, the parties had contracted to give Modern the right to distribute Big Bear Poker. See id. at 7-13. The Court will not revisit those issues here, especially since the terminology disputes ultimately do not impact the Court’s analysis of the issues presented here. The Court deems this fact admitted. 6 Sockeye disputes this fact in part, stating that "Sockeye disputes Modern’s definition of “Software.” Docket No. 208 at 3, ¶ 8. For the reasons discussed in footnote 5, the Court deems this fact admitted. 7 Sockeye disputes this fact in part, stating that, “[t]he License Agreement granted Modern an exclusive license to use the PDS, as defined in the Agreement, in the listed territories. . . . Sockeye disputes Modern’s definition of ‘Software.’” Docket No. 208 at 4, ¶ 11. For the reasons discussed in footnote 5, the Court deems this fact admitted. 8 Sockeye disputes this fact, stating that “Section 2.1 reads: ‘[Sockeye] grants to [Modern] . . . a license to use the PDS [Platform Development Software] as indicated in this Agreement and subject to the terms of this Agreement (emphasis added).’; the section does not refer generally to ‘software.’” Docket No. 208 at 4, ¶ 12. For the reasons discussed in footnote 5, the Court deems this fact admitted. 9 Sockeye disputes this fact in part, stating that “Jason deGrandmaison contacted Scott Molina and two other employees.” Docket No. 208 at 4, ¶ 17. The Court finds this nonresponsive to the fact asserted and deems this fact admitted. response for a Request for Proposal in July 2019. Id., ¶ 18.10 Modern informed Sockeye of this upcoming Request for Proposals. Id. On October 20, 2019, one of Modern’s contacts in the New York gaming market, Scott Molina, emailed Modern stating: I’m heading to Albany/Schenectady for my Monday meeting. As discussed, I’ll be discussing our revenue enhancements initiative (including video poker) with the Gaming Commission. My preference is traditional video poker, but I’m prepared to discuss Kodiak Skill-Based Poker as a backup option/strategy if I’m challenged on the jurisdictional issue. I'll call you if I have any questions.

Id., ¶ 19.11 While the License Agreement was in effect, on February 8, 2022, Sockeye entered into an agreement with Empire Technological Group, Ltd. (“Empire”) that gave Empire an exclusive license to use Sockeye’s Software in Modern’s territories. Id. at 7, ¶ 32.12 On March 14, 2022, Sockeye sent Modern a notice of termination of the License Agreement, dated February 23, 2022. Id., ¶ 33. II.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Bausman v. Interstate Brands Corp.
252 F.3d 1111 (Tenth Circuit, 2001)
Faustin v. City and County
423 F.3d 1192 (Tenth Circuit, 2005)
Grynberg v. Total S.A.
538 F.3d 1336 (Tenth Circuit, 2008)
Law Co., Inc. v. MOHAWK CONST. AND SUPPLY CO.
577 F.3d 1164 (Tenth Circuit, 2009)
Eastern Electric, Inc. v. The Seeburg Corporation
427 F.2d 23 (Second Circuit, 1970)
Amoco Oil Co. v. Ervin
908 P.2d 493 (Supreme Court of Colorado, 1996)
Soderlun v. Public Service Company
944 P.2d 616 (Colorado Court of Appeals, 1997)
Hansen v. GAB Business Services, Inc.
876 P.2d 112 (Colorado Court of Appeals, 1994)
Bullock v. Wayne
623 F. Supp. 2d 1247 (D. Colorado, 2009)
City of Golden v. Parker
138 P.3d 285 (Supreme Court of Colorado, 2006)
Pinnacol Assurance v. Hoff
2016 CO 53 (Supreme Court of Colorado, 2016)
McDonald v. Zions First National Bank, N.A.
2015 COA 29 (Colorado Court of Appeals, 2015)
Veolia Water v. Antero
2024 COA 126 (Colorado Court of Appeals, 2024)

Cite This Page — Counsel Stack

Bluebook (online)
Modern Gaming, Inc. v. Sockeye Software, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/modern-gaming-inc-v-sockeye-software-llc-cod-2026.