In a swift 39-day resolution, the U.S. Court of Appeals for the Federal Circuit closed Case No. 24-2064 on August 19, 2024, after a coalition of major online gambling operators — including Entain Corporate Services, DraftKings, BetMGM, Betfair Interactive, PointsBet USA, and others — voluntarily dismissed their appeals against patent assertion entity Beteiro, LLC. The underlying dispute centered on U.S. Patent No. 9,965,920 (B2), which covers an apparatus and method for facilitating gaming and gambling activity. The court ordered each side to bear its own costs, leaving no damages award, fee shifting, or definitive ruling on the patent’s validity.

The voluntary dismissal without a merits ruling is a strategically significant development for the online sports betting and iGaming industry. With multiple tier-one operators coordinating a joint challenge that ultimately ended without a final invalidity determination, questions remain about the enforceability of US9965920B2 and Beteiro’s ability to re-assert it. IP counsel advising gaming platforms, fintech betting operators, and B2B gaming technology providers should closely monitor any continued PTAB proceedings or future district court activity involving this patent.

Case Overview

The Parties

The Patent at Issue

U.S. Patent No. 9,965,920 (B2), titled ‘Apparatus and Method for Facilitating Gaming Activity and/or Gambling Activity,’ covers systems and processes designed to enable or support online gambling and gaming operations. The claims likely encompass user interaction workflows, wagering logic, or device-based facilitation of betting events. Its broad applicability to digital sports betting platforms and casino gaming products made it a significant litigation target across the iGaming industry.

• • US9965920B2

Legal Representation

Plaintiff Counsel: Arnold & Porter Kaye Scholer LLP (lead: Evan M. Rothstein)
Defendant Counsel: Sinergia Technology Law Group, PLLC (lead: Rene A. Vazquez Esq.)

Litigation Timeline & Procedural History

This case was filed at the U.S. Court of Appeals for the Federal Circuit on July 11, 2024, making it an appellate-level proceeding rather than a fresh district court filing. The Federal Circuit is the specialized Article III court with exclusive jurisdiction over patent appeals in the United States, meaning the underlying invalidity challenges had already been litigated or initiated — likely through PTAB inter partes review proceedings or a district court ruling — before the operators sought appellate review. The District of Columbia circuit designation reflects the Federal Circuit’s Washington, D.C. venue.

The case closed just 39 days after filing on August 19, 2024 — an exceptionally short lifespan for a Federal Circuit appeal. The resolution came not through briefing, oral argument, or a merits panel decision, but through the appellants’ unopposed motions to voluntarily dismiss under Federal Rule of Appellate Procedure 42(b)(2). The court construed ECF Nos. 2 and 6 as those motions, granted them without opposition from Beteiro, and ordered each party to bear its own costs. This outcome leaves the underlying patent’s validity status unresolved at the Federal Circuit level and signals a negotiated or strategic withdrawal rather than a litigation victory for either side.

The Verdict & Legal Analysis

Outcome

The Federal Circuit granted the appellants’ unopposed motions to voluntarily dismiss Case No. 24-2064 on August 19, 2024, terminating the appeals without any merits ruling on the validity or invalidity of U.S. Patent No. 9,965,920. No damages were awarded, no injunctive relief was granted or denied, and no fee-shifting occurred — each side was ordered to bear its own costs. Critically, the patent’s validity was neither confirmed nor cancelled by this proceeding, leaving Beteiro’s claims legally intact at the appellate level.

Verdict Cause Analysis

The voluntary dismissal on patentability grounds warrants close analysis of what drove the appellants’ strategic withdrawal and what it means for the patent’s future enforceability

• The appeals were categorized under an Invalidity/Cancellation Action, indicating the operator coalition had challenged the patentability of US9965920B2 — most likely through PTAB inter partes review — and was appealing an adverse or unsatisfactory ruling before choosing to withdraw.
• Beteiro’s failure to oppose the dismissal motions suggests the patent holder may have reached confidential licensing agreements or other commercial resolutions with the appellants outside of court, rendering continued litigation unnecessary for both sides.
• The cost-neutral order — each side bearing its own expenses — is consistent with a negotiated resolution, as adverse parties in a pure procedural dismissal often seek cost recovery; waiving that right signals a cooperative exit rather than a concession of defeat.
• Because no Federal Circuit merits ruling was issued, US9965920B2 retains its presumption of validity under 35 U.S.C. § 282, and Beteiro remains legally positioned to assert the patent against other operators who were not parties to these appeals.

Legal Significance

1. 1. The voluntary dismissal without prejudice at the Federal Circuit means the invalidity arguments raised by this operator coalition were never adjudicated on the merits, preserving Beteiro’s ability to assert US9965920B2 against non-party gaming companies and creating ongoing FTO risk across the iGaming sector.
2. 2. The participation of eight named plaintiffs — spanning DraftKings, BetMGM, Betfair Interactive, PointsBet, Hillside NJ, TSG Interactive, ODS Technology, and Entain — reflects an industry-wide defensive coordination strategy that, despite its scale, did not produce a definitive invalidity ruling, underscoring the limitations of coalition appeals when resolved pre-merits.
3. 3. Any pending or future PTAB IPR proceedings involving US9965920B2 that were not resolved through this Federal Circuit action remain active potential vehicles for invalidity challenges, and practitioners should monitor PTAB dockets for related institution decisions or final written decisions affecting this patent family.

Strategic Takeaways

For Patent Attorneys:

• When representing multiple co-appellants in Federal Circuit invalidity appeals, ensure settlement or licensing negotiations include explicit carve-outs or patent exhaustion provisions to prevent piecemeal re-assertion against individual clients after a coalition withdrawal.
• The voluntary dismissal under FRAP 42(b)(2) preserved each side’s cost position, but practitioners should negotiate cost and fee provisions explicitly in any side agreement to avoid ambiguity if subsequent disputes arise over the same patent.
• Given that US9965920B2’s validity was not resolved, attorneys representing other gaming operators should immediately evaluate whether parallel IPR petitions were filed and remain active, and consider filing their own IPR or ex parte reexamination requests before any estoppel arguments crystallize.
• The rapid 39-day closure of a Federal Circuit appeal is a signal of pre-filing settlement negotiation; in future multi-defendant patent cases, advise clients to coordinate licensing discussions before appellate filing to avoid the costs of docketing while preserving leverage.

For IP Professionals:

• In-house IP teams at gaming and sports betting operators should conduct a landscape analysis of all Beteiro-held patents and related continuations to assess whether the resolution of these appeals leaves other portfolio assets available for assertion against their platforms.
• Monitor PTAB’s PRPS docket for any inter partes review petitions challenging US9965920B2 or related patents in the same family, as post-grant proceedings may still produce a definitive invalidity ruling that would benefit non-party operators across the iGaming industry.

For R&D Teams:

• Product and engineering teams building gaming facilitation platforms, wagering interfaces, or gambling apparatus should commission a Freedom-to-Operate opinion specifically addressing US9965920B2’s claims, since the patent remains valid and enforceable following the dismissal of these appeals.
• Design-around efforts should focus on the specific apparatus and method claims of US9965920B2 — particularly any claims directed to the technical workflow of facilitating gaming activity — to ensure new platform features launched post-2024 do not inadvertently fall within the patent’s scope.