The Tonkawa Tribe of Indians of Oklahoma, a casino operator, alleges in a proposed class action that Scientific Games Corp., Bally Technologies, Inc., and Bally Gaming, Inc. have successfully monopolized 100% of the U.S. automatic card-shuffling machine market, as well as slightly less than 100% of the global market.
Get the complaint: Tonkawa Tribe v Scientific Games Complaint Sept 2020
In addition to forcing all competitors out of the market, their “lengthy pattern of predatory, vexatious patent litigation has effectively raised a substantial artificial barrier to entry for all potential competitors as well as excluded competitors.”
No company can compete with Scientific Games and Bally “without a multi-million dollar war chest and a business plan that includes millions in upfront litigation costs as part of its anticipated start-up expense.”
Specifically, the tribe says the defendants have charged them and other casino operators unlawful purchase and lease prices “well above competitive levels” and denied them any competitive choice in the automatic card-shuffling machine market.
The Tonkawa Tribe filed their suit in U.S. District Court for the District of Nevada in Law Vegas on Sept. 3, 2020. (Tonkawa Tribe v. Scientific Games, et al., No. 2:20-cv-01637-JCM-BNW, D. Nevada).
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