Everi Scores Win in Sightline Payments Patents Case

Posted on: September 26, 2023, 04:52h. 

Last updated on: September 27, 2023, 01:37h.

Todd Shriber @etfgodfather Read More

Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Everi Holdings’ (NYSE: EVRI) Everi Payments unit announced Tuesday that it scored a significant legal victory in a long-running patents case against Sightline Payments Patents.

Las Vegas-based Everi said it won five inter-part review proceedings held before the US Patent and Trademark Office’s (USPTO) Patent Trial and Appeals Board. The case was nearly two years old and started in September 2021 when Sightline filed a patent infringement suit in the ?Western District of Texas US District Court, claiming Everi’s CashClub Wallet offering infringed on at least five Sightline patents.

That case was dismissed in June 2022, but Everi also filed for a review of the patent infringement claims, challenging the assertions Sightline made against the company. Commencing August 30, the Patent Trial and Appeals Board issued a series of rulings holding that the claims made by Sightline against Everi weren’t patentable.

A patent claim is unpatentable under federal law if the differences between the claimed subject matter and the prior art are such that the subject matter, as a whole, would have been obvious at the time the invention was made to a person of ordinary skill in the art to which said subject matter pertains,” according to statement issued by Everi.

Everi’s CashClub Wallet is a cashless gaming solution and provides a way for gamblers and operators to reduce the need for cash inside gaming venues.

Everi Banking on Fintech Growth

While Everi may have to contend with legal appeals by Sightline, the USPTO ruling is nonetheless positive for the former because it removes a potential overhang.

A major part of the Everi investment thesis is the company’s fintech offerings, and that’s underpinned by the move to cashless gaming at casinos across the country, which as been sped along by the coronavirus pandemic.

“Everi is gratified that after reviewing all of the facts and testimony, the PTAB found in our favor. As with all litigation, there is uncertainty, and additional appeals may be forthcoming,” said Everi Chief Legal Officer Kate Lowenhar-Fisher in the statement.

Everi’s CashClub digital wallet has experienced rapid adoption. At the end of 2021, a mere handful of casinos used the product, but that number is now north of 20 gaming venues across at least six states.

Sightline May Have to Learn to Live with Everi

It’s possible that Sightline Payments could score some future legal victories in the Everi rift, but that remains to be seen. If the recent USPTO rulings are any indication, the two companies will have to live with competing against each other.

Las Vegas-based Sightline provides payment products for gaming operators in the iGaming, land-based casino and sports wagering industries.

The firm’s clients include BetMGM, Boyd Gaming, Caesars Sportsbook, and casinos operated by the Choctaw Nation, according to its website.