Lottery and betting equipment maker Scientific Games Corp. said Monday that its subsidiary Scientific Games Royalty Corp. is suing GTECH Holdings Corp., the world's largest operator of lottery systems, for patent infringement.
The lawsuit concerns the enforcement of Scientific Games' group participation multiplier patents, U.S. Patent Nos. 6,648,753 and 6,692,354 and GTECH's unauthorized and illegal use of same.
Lorne Weil, Scientific Games' chairman and CEO, said, "It is our intention to vigorously protect our intellectual property whenever necessary. Many lotteries, the Multi-State Lottery Association (MUSL) and International Game Technology have already signed license agreements concerning these patents in recognition of our legal rights and it is time for GTECH to do so."
Scientific said GTECH's systems for MUSL's Powerball Power Play and Keno Plus games violate its patents covering online lottery games that include an optional bonus wager. If a player who opts for the "bonus wager" wins a prize in the base game, the player's winnings get multiplied by a random amount.
The suit was filed in the Federal District Court in Delaware.
Scientific Games shares rose 39 cents to close at $21.73 on the Nasdaq, while shares of West Greenwich, Rhode Island-based GTECH climbed 22 cents to finish at $26.02 on the New York Stock Exchange.