Exclusive:Scottish betting giant FanDuel embroiled in legal action in US over patents row

Tech firm accused of infringing patents in court case

It is one of Scotland’s greatest tech success stories, growing from humble beginnings in Edinburgh to become a leading global player in the gambling industry.

But now, FanDuel is embroiled in a legal battle amid claims it infringed a slew of patents owned by a technology firm that specialises in proprietary solutions for mobile and online sports betting.

The firm, which has achieved extraordinary success with its sports, fantasy sports, and online casino betting products, is accused of using WinView’s patented technology without permission.

Lawyers for US-based WinView say the infringements span nine different patents covering innovative methods used for enhancing real-time user engagement in online sports betting.

FanDuel was founded in Scotland and has become a leading player in the US online betting marketplace. Picture: Scott Olson/Getty Images | Getty Images

Detailing what it describes as the “ongoing wilful infringement”, a civil action filed in the US District Court for the northern district of New Jersey states that WinView had contacted FanDuel on multiple occasions to notify it about its patented technology, and engage in discussions about potential partnerships or investment. Instead, it alleges, FanDuel “chose to wilfully infringe WinView’s patents rather than partner with WinView”.

The complaint claims FanDuel was “well aware” of both WinView and its technology and patents long before it filed the court case. It said that in early 2017, WinView’s founder, David Lockton, contacted FanDuel’s founder and then chief executive, Nigel Eccles, to discuss “synergism”, and subsequently introduced Mr Eccles to WinView’s executive chairman, Tom Rogers. It adds that Mr Eccles and Mr Rogers emailed, with the former acknowledging “similar interests”.

It also claims Mr Eccles’s successor, Matt King, met with Mr Rogers in January 2019 under an NDA, when WinView disclosed information regarding the firm and its patented technology. It said that despite WinView’s offers to partner and collaborate with FanDuel, the latter declined and continued its “infringement” of its patents without permission.

WinView’s lawyers have asked the court to make a preliminary and permanent injunction against FanDuel from “infringing” its patents, and award it damages. WinView is also taking legal action against DraftKings, another major online betting firm, which is also accused of infringing various patents.

The firm maintains offices in Glasgow and Edinburgh. | Getty

In a press release detailing WinView’s decision to pursue the legal action against both FanDuel and DraftKings, Mr Lockton explained: “We previously engaged in discussions with both companies regarding our patent portfolio and the platform. Despite those discussions, the defendants have continued to use our patented technology without authorisation.”

WinView previously took legal action against the two firms in 2021 over alleged patent infringements. Last year, the US Patent Trial and Appeal Board ruled some of the claims made in that action relating to three patents were invalid.

FanDuel was founded in Edinburgh in 2009 and became Scotland’s first ‘unicorn’ tech start-up, having achieved a valuation in excess of $1 billion [£790 million]. Betting giant Flutter Entertainment acquired a majority shareholding in the company in 2018 before paying £3bn two years later to expand its stake to 95 per cent.

The firm, which still maintains offices in Edinburgh and Glasgow, has continued to enjoy rapid growth, with 12 million registered users in the US alone. In September 2024, Fox chief executive Lachlan Murdoch announced his company planned to purchase an 18.6 per cent stake in FanDuel in a deal valuing the company around £27.6bn.

A spokesman for FanDuel said the company did not comment on ongoing litigation.