DraftKings challenges patent linked to Howard Lutnick

DraftKings is seeking to invalidate a geolocation patent held by U.S. Commerce Secretary Howard Lutnick. The company has filed a request with the U.S. Patent and Trademark Office to declare the patent unpatentable, arguing that the original examiner failed to consider prior art that would have blocked its approval. The patent, which covers technology used to verify a bettor’s location, was invented by Lutnick during his tenure at Cantor Fitzgerald.

The move comes amid a lawsuit filed in April by Interactive Games LLC, a gaming arm of Cantor Fitzgerald, which accuses DraftKings and FanDuel of infringing on five patents. DraftKings is asking the Patent Trial and Appeal Board to open an inter partes review of the 18 disputed claims.

In a separate regulatory development, DraftKings shares saw significant movement following a Ninth Circuit Court of Appeals ruling regarding prediction markets. The court ruled that states, such as Nevada, can classify sports-related event contracts—like those offered by Kalshi—as gambling rather than federally regulated swaps. This decision potentially levels the playing field for traditional sportsbooks that operate under state-by-state licensing requirements, rather than the federal commodity rules used by prediction market platforms.