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Alex Harper • Sep 17, 2026 
Reviewed By Paul Jacobs
Casino Expert
The DraftKings patent dispute has landed close to the official who oversees the patent office. DraftKings, one of the biggest names in the regulated US sports betting market, is asking federal patent judges to wipe out U.S. Patent No. 12,406,284, which names Commerce Secretary Howard Lutnick as its lead inventor.
The patent describes a way of checking where a customer is standing at the moment a bet is placed. Cantor Fitzgerald’s gaming arm has accused DraftKings of using that idea. Here is what the fight involves and why Lutnick’s role complicates it.
Key Insights on the DraftKings Patent Dispute
The DraftKings patent dispute comes down to five facts.
- DraftKings wants all 18 claims in patent No. 12,406,284 declared unpatentable.
- Lutnick is the primary named inventor, dating from his years leading Cantor Fitzgerald.
- Interactive Games, a Cantor Fitzgerald subsidiary, sued DraftKings and FanDuel in April over five patents.
- The USPTO sits inside Lutnick’s Commerce Department, so Director John Squires answers to him.
- No hearing date at the Patent Trial and Appeal Board (PTAB) has been reported.
Why Geolocation Checks Matter to Sportsbooks
Every licensed sportsbook has to prove that a bet originates inside a legal betting state, so location checks run behind nearly every wager. Operators generally rent this technology from outside vendors rather than build it themselves.
That is why a patent on the method draws attention well beyond the two companies in court. Whoever holds the rights could shape what a core compliance tool costs and who supplies it.
What DraftKings Is Asking the Patent Office to Do
DraftKings filed an inter partes review petition, a process that lets outside parties challenge an issued patent before the PTAB. Its central argument is that the original examiner never weighed earlier technology which, alone or combined, makes each claim an obvious step.
Winning would leave the patent with no enforceable claims, which would settle the DraftKings patent dispute in the company’s favor. These reviews are not quick. The board usually decides whether to take a case within roughly six months of filing, and a final ruling typically follows about a year after that.
The Cantor Lawsuit Behind the Petition
The petition follows a suit filed in April by Interactive Games LLC, a Cantor Fitzgerald subsidiary, against DraftKings and FanDuel. The complaint covers five patents, and no damages figure has been made public.
This is not the first round. The companies also faced off over similar patents about a decade ago.
Why Lutnick’s Role Complicates Things
The awkward part is the org chart. Squires reports up through the Commerce Department that Lutnick runs, and he has spoken warmly of Lutnick in public.
At the same time, the patent office under Squires and his predecessor, Coke Morgan Stewart, has been turning away many petitioners, often citing a patent’s age or earlier court rulings. That trend could work against DraftKings, which needs the same board to rule in its favor. No hearing date has been reported yet.
Cantor Gaming’s Own History
Cantor’s gaming business has a rocky past of its own. A 2018 money-laundering investigation put its Nevada license at risk, and its parent sold the unit in 2019.
What the DraftKings Patent Dispute Means for Bettors
Nothing changes at the betting window today. The longer-term question is who controls a technology every regulated operator depends on.
If you follow how sportsbook consolidation is reshaping the industry, our coverage of the industry after the NFL’s Fanatics deal is a useful companion read.
