Scientific Video games Sued by Riverboats More than ‘Illegal’ Shuffler Monopoly

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Posted on: April 7, 2021, 05:01h. 

Last updated on: April 7, 2021, 05:01h.

Two Midwest riverboat casinos are suing Scientific Online games (SG) in excess of claims the gaming supply huge fraudulently monopolized the market place in automated card shufflers by strangling competition with “sham lawsuits.”

Scientific Games
Signage for the Casino Queen Marquette, which is docked on the Mississippi River in Marquette, Iowa. (Image: KCRG)

Casino Queen, of East St Louis, Illinois, which trades as DraftKings at On line casino Queen, and Casino Queen Marquette, of Marquette, Iowa, are both docked on the Mississippi River. They allege SG’s behavior permitted it to set selling prices devoid of fear of remaining undercut.

The lawsuit argues direct purchasers of shufflers, like the plaintiffs, have been destroyed financially as a result and seeks suitable monetary relief. It needs other operators to sign up for the class-motion lawsuit towards SG and needs a jury trial.

The suit also names SG subsidiaries Bally Technologies and Bally Gaming as defendants.

Multimillion SG Settlement

In 2018, a federal choose purchased SG to pay back $315 million to Shuffletech, a manufacturer that SG compelled out of the market with lawful threats, even with realizing that its patents ended up invalid and unenforceable. The settlement was lowered to $151.5 million on attractiveness.

SG was located to have misled the patent business office and to have engaged in “sham patent litigation from any competitor that dared to sector aggressive card shufflers,” in accordance to the decide in that circumstance.

The On line casino Queen fit notes that quite a few gaming amenities have no choice but to buy SG’s equipment because shuffling by hand is illegal in many jurisdictions. But operators are compelled to pay out “supracompetitive prices” since of the SG monopoly.

The market in automatic card shufflers is valued at around $100 million per year.

SG controls an successful 100 % share of the marketplace, according to the suit. But this has not been achieved by “superior acumen, innovation, skill, foresight, or market, or by the good functioning of the industry,” but by “purposeful abuse of the patent program and the judicial approach.”

No Options

“There are no acceptable substitutes or choices for computerized card shufflers for casino desk game titles that use actual physical actively playing playing cards, which means that demand is inelastic for these items. Inelastic demand from customers signifies that raises in value final result in minimal declines in quantity bought in the marketplace,” continues the lawsuit.

In other phrases, because the desire for automated card shufflers is inelastic, sellers of computerized card shufflers – like the Defendants – can elevate the selling prices of these shufflers higher than competitive amounts devoid of observing a drop in product sales revenue.”

The lawsuit lists quite a few rivals who have been driven out of the marketplace by the defendants’ so-identified as sham litigation. In some cases, the defendants acquired their rivals’ belongings at a price reduction immediately after they experienced been weakened by authorized action.

SG obtained its automated shuffling technological know-how when it purchased out Bally Engineering in 2014 for $5.1 billion. A year earlier, Bally had obtained SHFL Enjoyment, which invented the Shuffle Learn machine.