Entain Suffers Setback in Legal War on UK Matched Betting Sites

Entain’s crackdown on UK matched-betting businesses has hit an early setback after the High Court struck out copyright infringement claims brought by the gambling giant.

Last year, the Ladbrokes and Coral owner sued Liquidity Trading Ltd and other companies behind matched-betting services, including OddsMonkey, Outplayed, Team Profit, and Team Casino.

Entain accused the businesses of infringing copyrights connected to its betting websites and logos, as well as 18 trademarks associated with brands including Ladbrokes, Coral, bwin, Sportingbet, Gala, and Foxy.

Matched betting is a technique used to turn bookmakers’ free bets and promotional offers into cash while minimizing exposure to gambling losses.

The sites display sportsbook logos and offers and then direct customers to the sportsbook to exploit those promotions.

However, High Court Judge Richard Cawson ruled that Entain had failed to adequately establish its ownership of the copyrights it claimed had been infringed.

Copyright Confusion

The judge identified shortcomings in Entain’s case over who created certain copyrighted material and how ownership had subsequently passed to the companies bringing the lawsuit.

Some of the material was created by employees of other companies within the Entain group or by outside agencies, complicating the question of ownership.

Cawson was also critical of Entain’s failure to resolve the issue earlier, noting that questions surrounding assignments of copyright remained outstanding around 11 months after the litigation began.

The ruling was not a determination on the merits of Entain’s copyright claims. Instead, Entain has been given an opportunity to amend its case and provide further details concerning ownership.

More significantly, Entain’s separate trademark infringement claims remain alive.

The defendants did not seek to strike out those allegations, accepting that they raised issues with a real prospect of success that should be determined at trial.

‘Parasitic’ Business Model

Matched betting typically involves placing opposing wagers with bookmakers and betting exchanges to convert free bets and other promotions into relatively predictable returns.

Entain has previously described the matched-betting industry as “parasitic,” arguing that businesses profit from bookmaker promotions while encouraging activity operators did not intend.

The defendants argue their use of Entain’s trademarks is referential — identifying the bookmakers and their services — rather than suggesting the matched-betting businesses themselves are associated with brands such as Ladbrokes or Coral.

Entain has been given a limited window to amend its case and provide sufficient details to establish ownership of the copyrights.