{"id":85375,"date":"2018-08-08T06:55:59","date_gmt":"2018-08-08T13:55:59","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=85375"},"modified":"2018-08-08T06:55:59","modified_gmt":"2018-08-08T13:55:59","slug":"scientific-games-loses-antitrust-case-owes-competitors-315-million","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/scientific-games-loses-antitrust-case-owes-competitors-315-million\/","title":{"rendered":"Scientific Games Dealt Losing Hand in Antitrust Case, Owes Competitors $315 Million in Damages"},"content":{"rendered":"

Scientific Games Corp<\/a> has been ordered to pay $315 million to competitors after a federal court in Chicago ruled it had launched \u201cfrivolous lawsuits\u201d to assert \u201csham patents\u201d in a bid to monopolize the market in automatic card shufflers.<\/p>\n

\"Scientific
Scientific Games was found to have used \u201csham patent litigation against any competitor\u201d in a bid to control the market for automatic casino card shufflers. The company is expected to appeal. (Image: Scientific Games)<\/figcaption><\/figure>\n

The Las Vegas-based lottery and casino equipment giant said in a filing to the Securities and Exchange Commission on Tuesday that it believed the jury had \u201creached the wrong result\u201d and that it would \u201cseek review of both the finding of liability and the damages award, both before the trial court and, if necessary, on appeal.\u201d<\/p>\n

Damages Tripled<\/strong><\/h2>\n

In 2012, three companies \u2013 Shuffle Tech, Aces Up Gaming, and Poydras-Talrick Holdings — collaborated on an automatic card-shuffler product for casinos, which was debuted that year at the Global Gaming Expo in Las Vegas.<\/p>\n

But SHFL Entertainment, previously Shuffle Master, filed a patent infringement lawsuit, alleging the companies were using its patented technology without authorization. In 2013, SHFL Entertainment was acquired for $1.3 billion by Bally Technologies, which a year later was acquired by Scientific Games<\/a> for $5.1 billion.<\/p>\n

\n

Shuffle Tech and its collaborators were forced to take their product off the market. But in 2015, they filed an antitrust lawsuit against Scientific, claiming SHFL Entertainment knew its patents were invalid and unenforceable.<\/p>\n<\/div>\n

The lawsuit accused the company of misleading the patent office and of engaging in \u201csham patent litigation against any competitor that dared to market competitive card shufflers.\u201d<\/p>\n

The jury agreed on Tuesday, awarding $65 million to Shuffle Tech, $25 million to Poydras and $15 million to Aces Up, sums that were immediately tripled by the judge.<\/p>\n

Raw Deal<\/strong><\/h2>\n

\u201cWe\u2019re quite happy, but it\u2019s so fresh, we\u2019re not sure what the next steps are,\u201d said Rick Schultz, the CEO of Chicago-based Shuffle Tech, in a phone interview with CDC Gaming Reports\u2019 Howard Stutz on Tuesday.<\/p>\n

Being a small company, we had the ability to develop a great product, but we didn\u2019t have the ability to compete with a large corporation with those type of resources and defend ourselves against a sham lawsuit,\u201d Schultz said.<\/p><\/blockquote>\n

Schultz told Stutz that the intellectual property Shuffle Tech owned for the product was sold to another company. And while he had big ambitions to supply equipment to the casino industry, these days Shuffle Tech only makes card shufflers for the consumer market.<\/p>\n

\u201cWe were basically put out of the gaming industry,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Scientific Games Corp has been ordered to pay $315 million to competitors after a federal court in Chicago ruled it had launched \u201cfrivolous lawsuits\u201d to assert \u201csham patents\u201d in a bid to monopolize the market in automatic card shufflers. The Las Vegas-based lottery and casino equipment giant said in a filing to the Securities and […]<\/p>\n","protected":false},"author":36,"featured_media":85378,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,60,18,16693],"tags":[],"acf":[],"yoast_head":"\nScientific Games Loses Antitrust Case, Owes Competitors $315 Million<\/title>\n<meta name=\"description\" content=\"Scientific Games enjoyed a stranglehold on the automatic card-shuffler market through deceptive means that included \u201cfrivolous lawsuits\u201d and bogus patents. 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