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Lottotron Online Patent Case

Interactive Systems, Inc. (ISI) NV, an operator of online casino, defeated Lottotron Incorporated’s patent infringement suit. An eight person panel decided unanimously in ISI’s favour. The case was presented in front of Judge Faith S. Hochberg in the District Court in New Jersey. Bill Gantz, ISI’s lawyer said that it was a relief to have the patents out of the way for the industry after seeing several licenses obtained by online casinos like 1st Tech Home Gambling Network, Lottotron and other questionable patent owners.

Lottotron is the owner of the patent named “Computerized Lottery Wagering System.” The system enables a player to register remotely by putting up his account on the online casino, create his own credit balance, choose a game to play, and place a wager utilizing the credit balance. The purpose of this patented system is to allow a player to wager into a game without the need to be physically on the wagering site. But, in a succession of court cases against the online casinos and the Internet gaming trade, Lottotron asserted that its patented wagering system covered every remote gambling system that is currently in existence – a huge amount of systems which could net them a lot of money in court if it was successful. While other Internet gaming operators who received the same court case settled, ISI took the fight and won on the premise that their games did not infringe Lottotron’s patent.

The court ruling greatly helps all online casino operators. It means that Lottotron will have to give proof that the other Internet games offered by the operators like slot machine games, scratch cards and video poker are not unconvincingly different from lottery games in order to have any kind of case at all. Last year, while ISI was fending for itself, Lottotron filed a case against forty other Internet gambling operators, among them popular names like PartyGaming, Cassava Enterprise and Playtech. After ISI’s victory, Gantz will use the same novel scheme again to defeat them when called upon to defend other sites that are also being taken to court by the company.

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