This case shows the difficulty of intellectual property protection as increasingly efficient data collection tools continue to spread in this highly competitive field.
Swish Analytics, a San Francisco-based sports betting technology startup, has launched a lawsuit against competitors OddsJam and OpticsOdds, accusing them of illegally misappropriating their unique sports betting odds.
The case, filed in San Francisco Superior Court, says that the two firms obtained Swish’s odds data directly from its sportsbook customers’ websites, repackaged it, and sold it to third parties without consent.
Swish Levies makes some serious accusations
According to a recent LinkedIn post by US Gaming Law and Sports Betting attorney Daniel Wallach, the complaint seeks damages in excess of $100 million. Swish Analytics accused OddsJam and OpticsOdds of “free-riding” on its meticulously gathered data by using unapproved practices like as web scraping and unauthorized API access to obtain odds information from Swish’s licensees’ websites, including FanDuel and bet365.
Defendants openly promote that they obtain odds information from third-party betting websites and then repost and resell that information.
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Swish further claims that OddsJam and OpticsOdds have exploited this data to directly compete with Swish by selling sportsbooks and other clients access to Swish’s proprietary odds at lower pricing, undermining Swish’s business model. According to the lawsuit, this conduct is harmful to the market as a whole and might have serious long-term effects if not addressed.
The defendants’ actions are also inflicting Swish irreparable harm and, if allowed unchecked, threaten to undermine the market for independent creation of sports-related odds information.
Swish expressed concern that the continuous illicit use of its private data would deter future innovation and investment in sports betting odds development. The corporation claimed that the anticipated $100 million in losses comprised not just lost revenue but also long-term damage to its brand and market dominance.
A victory for Swish could lead to a significant market shakeup
This action follows OddsJam’s recent acquisition by Gambling.com Group, a major provider in digital marketing services for the online gambling sector. The acquisition aims to merge OddsJam’s capabilities and revenue streams into Gambling.com’s portfolio, thereby boosting the company’s global online gambling market position. However, the newest legal challenge casts a pall over this transaction.
Swish was adamant that the lawsuit was about more than just financial compensation. It also sought to ensure the integrity of the sports betting data ecosystem. The company contends that its significant investment in establishing real-time odds systems and data analytics requires suitable safeguards to provide a level playing field in the sector.
Defendants are removing incentives for Swish and other independent developers to continue devoting time, effort, and money in independently generating odds information.
The outcome of this legal case could have a substantial impact on how the larger market treats proprietary sports betting data.
Swish Analytics’ probable victory could result in stronger laws governing how corporations use odds data, compelling competitors to reconsider their strategy for gathering and disseminating this important resource.
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