WagerWire Difficult Decisions Ahead as Marlins Co-Owner Funded Gambling Firm Hit With Patent Suit

WagerWire is facing tough decisions ahead as it must now contend with what could potentially be a costly patent infringement lawsuit.

Dominic LaRocca, a long time advisor in the gambling sector, tells Gambling911.com WagerWire is infringing on his patent.  That's a lawyerly way of saying they "stole" his idea.  And while LaRocca is not a lawyer, he feels strongly this is the case and he's prepared to do whatever it takes to prevent this from continuing.  That includes hiring the nation's preeminent patent law firm to take this matter on.  WagerWire has until mid-July to respond to these allegations, though an extension is always possible.  Gambling911.com is in the process of reaching out to WagerWire for comment.  We are learning they were served late Friday evening.

WagerWire is one of dozens of startups looking to capitalize on the US regulated sports betting industry that opened up in May of 2018 after the Supreme Court tossed out decades of prohibition known as the Professional and Amateur Sports Protection Act (PASPA).  Like with most startups, WagerWire has relied on rounds of funding, most notably from Miami Marlins co-owner Roger Ehrenberg.  It claims to have raised a $3 million seed funding round led by Ehrenberg two years ago.

WagerWire encourages its users to "jump in-and-out of futures all season, cash in your fantasy pickems before they bust, and trade brackets deep into the tourney" as well as "capture value by buying low, or sell your action for a profit even if that team or player goes on to lose".

According to the lawsuit, the Get Out Ahead, LLC inventions as claimed further overcome the deficiencies existing in the art as of the date of invention by providing a means by which gambling platform providers could “obtain additional revenue from wagers already placed by collecting a commission on exchanged tickets.” See id. at 4:23-32. Still further, the inventions as claimed promote higher revenues for platform operators because, as explained by the patentees: “If users are able to liquidate part of their initial investments, users may reinvest their liquidated funds into additional wagers, resulting in more income for the wagering service.”

"If you are a an online casino operator, online sportsbook operator, fantasy sports operator, marketplace, exchange wager platform, etc. and you are offering the exchange of multiple iterations of the same online wager transaction?  YOU ARE INFRINGING OUR PATENTS !!!," Get Out Ahead LLC warns.

It didn't have to be this way for WagerWire, LaRocca tells Gambling911.com.  They were warned on numerous occasions dating back a full year.

"My unsolicited advise to them is 'don't do a stupid press release we are aggressively going to defend (this) suit'," he offered.  "Myself personally and an associate reached out on numerous occasions to see how we could work with them.

LaRocca added that "my name is listed as the prior art on their patent applications."

He believes this is a case of a young company receiving very poor legal advice.

"The problem with legal advice in patent representation is these might be the most expensive per hour lawyers of any specialty.

"It would be impossible to fathom they were completely unaware of what we did.

"I really think these are decent guys betting bad legal advice.  Many attorneys do what is best for themselves, not what is best for their clients."

And for those in the wagering community suggesting Get Out Ahead, LLC does not have a case, LaRocca says "read the patent".

"It's not as simple as (just a) cashout."

Without mentioning other companies by name, LaRocca noted that WagerWire is far from the only startup in the sports betting and/or fantasy space infringing upon his patent. 

"I can help influence decisions prior to litigation but I am the least (of a) 'dick' of the people in the equation between the partners and lawyers, and I am not necessarily the nicest guy (myself)."

LaRocca says he really prefers a back channel approach but that ship has mostly sailed where WagerWire is concerned.  Now it's all about minimizing damages.