Pure Parlay, LLC v. Stadium Technology Group, Inc.

District Court, D. Nevada·Decided January 20, 2023·No. 2:19-cv-00834·Unknown

Opinion

DISTRICT OF NEVADA

Pure Parlay, LLC, Case No. 2:19-cv-00834-CDS-BNW

Plaintiff Order Granting Motion for Judgment on v. the Pleadings and Closing Case

Stadium Technology Group, Inc.; GVC [ECF No. 74] Holdings, PLC; Defendants In this patent-infringement lawsuit, defendants Stadium Technology Group and GVC Holdings seek judgment on the pleadings to dismiss plaintiff Pure Parlay’s suit with prejudice. Defendants allege that Pure Parlay’s patent is directed toward patent-ineligible subject matter and thus an infringement claim is not viable. Because the patent is directed toward the abstract idea of flexible point shading in a multi-game sports wager and employs no “saving” patent- eligible innovative concept, I find that the patent is, indeed, directed toward patent-ineligible subject matter and therefore grant defendants’ motion. The Clerk of Court is directed to enter judgment accordingly and close this case. I. Relevant Background Information a. Procedural History Pure Parlay filed suit in May 2019, alleging that Stadium and GVC infringed its patent, U.S. Patent No. 9,773,382 (the ‘382 patent). See generally Third Am. Compl., ECF No. 65. United States District Court Judge Gloria M. Navarro1 denied defendants’ motion to dismiss the third- amended complaint based on her finding that Pure Parlay sufficiently pled divided infringement,

1 Judge Navarro previously presided over this case, but it was administratively reassigned to me in April 2022. an issue that I need not further address to resolve the instant motion. See generally Order, ECF No. 72. Now, the defendants move for judgment on the pleadings under Federal Rule of Civil Procedure 12(c); they contend that the ‘382 patent concerns unpatentable subject matter and thus cannot support a claim of infringement. See generally Mot., ECF No. 74. Pure Parlay opposes the motion (ECF No. 77), and defendants reply. ECF No. 78. I held a hearing on December 6, 2022, so the parties could present further argument. ECF No. 84. b. The ‘382 Patent The ‘382 patent underlying this suit pertains to multi-game wagering (colloquially, “parlays”)2, which is a form of sports betting. The patent is titled “Computer-Implemented System and Method for Making Multiple-Game Sporting Event Wagers” and discloses: A system and method for effecting a multiple-arm wager incorporating a plurality of events, such as sporting events, including accessing a wagering system of the type including a central computer accessible by at least one network terminal interconnected thereto and hosting an executable instruction set for computing intermediate revised odds between a minimum and a maximum as a function of bettor-selected point shades to modify the line applicable to selected individual competing event teams for determining whether the selected teams have won the game for the purposes of the wager. The line for each team is individually selectively point-shaded in accordance with the wishes of the bettor, and the betting odds for the wager are calculated as a function of the total number of points shaded for the selected teams. Patent Abstract, ECF No. 65-1 at 1. The ‘382 patent has one independent claim, which states that it is “[a] computer-implemented method for providing increased wagering flexibility to an individual bettor in the process of making a multiple[-]armed event wager from an electronic wager input device having a display[.]” Id. at 15. The method is comprised of “providing and accessing a wagering system,” “selecting a plurality of teams” to put in the wager, “determining baseline odds” for the wager, defining the increment of point shading and maximum amount of points that can be shaded, calculating the minimum and maximum potential return of the bet

2 A parlay “is a single wager that links together two or more individual bets, and the wager is dependent upon each of those individual bets winning in order to win the overall wager.” ECF No. 65-1 at 7. The parties interchangeably call the individual bets constituting one part of the parlay “arms” or “legs” of the parlay. Id. based on the permissible amount of point shading, “choosing, by [the] bettor” the number of points to shade, “combining the chosen quantity of points shaded for each team to obtain a total point shade value,” calculating the revised odds based on that total point shade value, and then “placing the wager at the calculated revised odds.” Id. The ‘382 patent claims neither any particular technology nor any unique physical component to implement its method. In less technical terms, the ‘382 patent essentially claims a method for bettors to place multi-arm wagers wherein the bettor can “shade”3 the line on each arm of the bet. See ECF No. 65-1 at 8 (summarizing the claimed invention). Using a visually displayed parlay card layout, the bettor can “redistribute point shades to a predetermined betting line.” Id. The user’s inputs, as defined by how much they shade the original betting line, result in a changed payout for the wager. Id. at 8–9. That prospective payout updates as the user slides the spread further from the original line. Id. at 9. Pure Parlay claims two departures from parlay betting interfaces in the prior art (i.e., other methods for placing multi-team sports wagers). First, provision of “an opportunity to alter the shading value and shading direction for individual arms of a multi-team wager.” Id. at 10 (emphasis added). And second, the graphical interface displaying the same, with real-time changes in the prospective payout as each arm is shaded. Id. at 15. To exemplify the concepts described above, take a traditional three-team parlay returning 6-to-1 on a bet where Team A is a seven-point favorite (displayed as “Team A –7”), Team B is a ten-point favorite (“Team B –10”), and Team C is a four-point underdog (“Team C +4”). To win the parlay, the bettor would need Team A to win by seven or more, Team B to win by ten or more, and Team C to win outright or lose by four or fewer points. See ECF No. 65-1 at 7 (using this example in the background information of the patent). The ‘382 patent describes a method allowing the bettor to “shade” each line of the parlay, for example, by purchasing six

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Pure Parlay, LLC v. Stadium Technology Group, Inc., (D. Nev. 2023).

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