Penn Faces Patent Lawsuit Over Hollywood Casino App
Introduction to the Lawsuit
Penn Entertainment is currently involved in a new legal battle that could significantly affect the design and functioning of betting applications. This lawsuit, initiated by a lesser-known technology company called Single Action Bet Tech LLC, accuses Penn and its digital division of illegally using a patented “single-action” betting technology within the Hollywood Casino mobile application.
Overview of the Technology and Its Benefits
Filed on December 12 in the U.S. District Court for the District of New Jersey, the lawsuit targets Penn Entertainment Inc. and its subsidiary Penn Interactive Ventures LLC. The suit centers around two patents describing a system that enables bettors to place wagers and initiate betting sessions with just one tap on a smartphone or a single click on a computer screen.
Single Action claims that the Hollywood Casino app incorporates this streamlined approach, allowing users to select a bet, authorize payment, approve the wager, and confirm their location all in one seamless action. From the end user’s perspective, this means a single tap is sufficient to complete the entire betting process.
Behind this simple interaction, however, the technology performs several complex tasks. It automatically accesses stored account information, verifies the bettor’s login status, checks for adequate funds, and ensures the user is in a location where betting is legal. Only when all these conditions are fulfilled, does the wager proceed without requiring any further input.
Allegations of Patent Infringement
Single Action asserts that the patents cover both the underlying concept and the technical implementation of using a single user action to trigger all necessary backend procedures and the execution of bets. The company affirms it retains full ownership of these patents and has not authorized Penn or its Hollywood Casino affiliates to use the technology.
The lawsuit claims that Hollywood Casino’s digital gaming and sports betting platforms infringe upon these patents. Additionally, Single Action alleges that Penn was aware of these patents, citing outreach efforts for licensing that occurred as recently as December 2024. The company is seeking damages, interest, legal costs, and attorney fees. They also request the court to determine that the infringement was deliberate and to award triple damages.
Implications for Penn Entertainment
This legal challenge arises amid Penn’s broader strategic changes following the discontinuation of its ESPN Bet initiative. The company is now focusing on its most profitable markets and planning to adopt more advanced marketing strategies to boost customer loyalty as it transitions from ESPN Bet to theScore Bet.
