Court denies racing slots patent appeal

A federal appeals court has upheld a lower court’s ruling throwing out allegations that an upstart maker of historical racing machines infringed on the patents of a competitor owned by The Stronach Group, according to court documents.

The U.S. Court of Appeals for the Federal Circuit ruled Monday to uphold the ruling last year of the U.S. District Court for the Western District of Kentucky, without issuing an opinion. The lower court had dismissed allegations made in a lawsuit that Exacta Systems, which was founded in 2013, had infringed on three patents held by RaceTech, a historical-racing machine manufacturer and operator that was bought by The Stronach Group last year.

Historical-racing machines use the results of previously run horse races to determine payouts. The machines are designed to resemble slot machines, and they are in use at racetracks in Arkansas, Kentucky, Oregon, and Wyoming.

Richard Brophy, who represented RaceTech’s position in the suit, did not immediately return a phone call.

The suit was touched off in 2015 after Kentucky Downs reached an agreement with Exacta Systems to use their machines in a parlor at the track. Exacta Systems, which was previously known as Encore Gaming, was founded by Ray Reid, a partner in Kentucky Downs. The company was later tabbed by Ellis Park to install its machines at the track’s gambling parlor, replacing RaceTech.