US 9978205

A concise summary of U.S. Patent 9,978,205, including details of recent legal challenges, is provided below.

Summary of U.S. Patent 9,978,205

Title: Location based restrictions on networked gaming

Assignee: AG 18 LLC

Inventors: Nicholas Koustas, John Mix, Alexander Oxman

Filing Date: February 28, 2017

Issue Date: May 22, 2018

Abstract: A system and method for peer-to-peer gaming is described. One embodiment includes a system for peer-to-peer gaming, the system comprising an at least one gaming client, wherein the at least one gaming client is configured to accept a selection of an at least one gaming option from a player, and allow the player to play a game based on the selection of the at least one gaming option; an administration server, wherein the administration server is configured to receive the selection of the at least one gaming option from the at least one gaming client, and initiate the game for the player based on the selection of the at least one gaming option; and an at least one gaming server, wherein the at least one gaming sever is configured to run the game and transmit data about the game to the administration server.

Plain-Language Overview of Independent Claims

U.S. Patent 9,978,205 has four independent claims: 1, 12, 19, and 28. A plain-language summary of each is as follows:

• Claim 1: Describes a method for online gaming that is restricted based on the player's physical location. The system first identifies what gaming options (including wager limits and game types) are legal in the player's current location. It then presents only these legal options to the player. After the player makes a selection and a bet, the system initiates the game and pays out any winnings. This method is controlled by a central "administration server."

• Claim 12: Details a gaming system with a processor and memory programmed to perform a similar function to the method in Claim 1. It creates a list of legally permissible games and wager limits based on the player's location, sends this list to the player's device, receives their selection, initiates the game, and handles compensation.

• Claim 19: Focuses on the architecture of the gaming system. It describes a system with at least one player device ("gaming client"), an "administration server," and a "gaming server." The player's device only shows legally allowed gaming options for their location. The administration server receives the player's choice and starts the game. The gaming server then runs the game and sends data back to the administration server.

• Claim 28: Describes another gaming system configuration. A processor identifies the legally-allowed gaming options for a player's location and displays them on their device. After the player makes a selection from a variety of game types (such as arcade, puzzle, or card games), the system initiates the game and compensates the player for any winnings.

Litigation Summary

Recent legal activity concerning this patent includes a case in the U.S. Court of Appeals for the Federal Circuit, DK Crown Holdings Inc. v. AG 18, LLC. On May 6, 2026, the court affirmed a decision by the Patent Trial and Appeal Board (PTAB). The PTAB had previously found claims 1-17 and 19-30 of the patent to be unpatentable. However, claim 18, which is dependent on claim 12 and relates to converting to non-monetary wagering where real-money betting is not allowed, survived the challenge by DraftKings.