Progressive Gaming International (PGIC) and Interactive Systems Worldwide Inc. (ISWI) have settled the patent infringement lawsuit filed by ISWI over Progressive’s Rapid Bet Live sports betting system.
ISWI officials said last week the companies signed a licensing agreement that grants Progressive (formerly Mikohn Gaming) a worldwide, non-exclusive license to distribute Rapid Bet Live, with ISWI receiving royalties and revenue payments.
Rapid Bet Live is a computer-based system that enables sports book patrons to make play-by-play wagering during a sporting event.
For instance, during a baseball game bettors could wager on the outcome of a hitter’s at-bat — walk, hit, strike out, etc. — or even the result of a pitch — ball, strike, etc.
Rapid Bet Live was installed on a trial run at the Palms sports book, but was removed two weeks ago.
The system was originally developed by ISWI as a product called SportXction, which never caught on because the computer technology at the time couldn’t meet the demands of the system.
In an unrelated case, Progressive Gaming found itself on the losing end of a judgment that could cripple the company financially if it can’t win its appeals.
In a filing with the Securities and Exchange Commission, Progressive said the plaintiffs in the suit were awarded $13 million, which has been tripled to $39 million according to applicable law.
The lawsuit, filed 10 years ago in a district court in Mississippi, alleged Progressive illegally restrained trade and attempted to monopolize the proprietary table game market in the United States.
In addition, the plaintiffs have filed a motion seeking attorney’s fees and costs of about $4.7 million. The plaintiffs include British-based Prime Table Games and Derek Webb.
Progressive said it has filed post-trial claims for relief, and will appeal if necessary. It added that it might not be able to pay the full amount and even if it could, it might have to declare bankruptcy.
"Even if successful in posting a bond of this magnitude, this requirement could have a material adverse effect on our financial position, results of operations and liquidity, up to and including impacting our ability to continue as a going concern or forcing the company to seek protection under federal bankruptcy laws," Progressive Gaming said in the filing.
In a later press release, the company said it does not expect any cash disbursements in fiscal 2007 related to the litigation, other than normal legal defense costs, and believes it will prevail in its post trial motions in the case.
Heather Rollo, chief financial officer of Progressive Gaming stated: "We remain confident in our legal, financial and strategic position as outlined in our recent press announcement, quarterly conference call and FAQ posted on our website. As mentioned in previous disclosures, we believe the Company is on track to strengthen its balance sheet and return to profitability. We remain in good standing with our lenders, gaming regulatory agencies and other key stakeholders."