By Ty McMahan
Venture capital firms have gambled once again on GameLogic Inc., a developer of online gaming software for casinos and lotteries that in recent months has faced a patent lawsuit and a change in leadership.
Recently appointed Chief Executive John Taylor told VentureWire the company has secured "a modest inside round" of funding, but declined to give a specific amount. A regulatory filing shows the company has raised $4 million in Series B capital.
GameLogic shareholders include Bain Capital, General Catalyst Partners and Maveron, the Seattle VC firm started by Starbucks Chairman Howard Schulz. Investors have put more than $20 million into the company. Calls to the three firms were not immediately returned.
Taylor, who previously served as president of the company, replaced GameLogic founder Steven Kane earlier this month as CEO. Taylor joined GameLogic in March 2006 from SnowMark Corp., an early-stage venture capital firm, where he served as managing partner.
Kane remains on the board of directors.
"I think we got to a point where our products started getting traction in the marketplace and Steve thought he was better focused on the board level," Taylor said.
The company also promoted Mark Herrmann to the newly created title of chief operating officer. Herrmann, formerly the company's senior vice president for operations and product management, has been with the company since its inception and is directly responsible for the creation and operation of the company's products and services.
In August, John Acres was named chairman of the company's board, taking over the role from Kane. An inventor and entrepreneur, Acres' contributions to the gaming industry include the modern progressive jackpot system and player tracking technologies.
"[Acres] is a huge player, an icon in the industry," Taylor said.
The management changes all occurred around the time GameLogic was dealt a legal blow when a federal court ruled that one of the company's products had violated patents held by competitor Ingenio Filiale de Loto-Quebec Inc.
In November, the companies established a licensing agreement for Ingenio's patents, thus ending the litigation. Under the agreement, GameLogic markets its games and content platforms to the global lottery industry, under license, when applicable, from Ingenio. Terms of the settlement and license agreements were not disclosed.
GameLogic's ticket-based gaming technology allows consumers to place a wager by buying tickets at legal casinos and lotteries. Consumers can then access bet results and play games online. Consumers must return to the original casino or lottery to redeem winnings.
The company's technology has been approved by gaming commissions in New Jersey, Mississippi, Nevada and the National Indian Gaming Commission.
The company also offers free games that are loaded on casino Web sites to attract potential customers. GameLogic makes a host of online games including slot games, card games, bingo, trivia and puzzles.
Founded in 2002, GameLogic is based in Waltham, Mass.