My skytrak laser dot continuously blinks while in the case- does anyone else have the same issue?

This could be a static issue. Try playing without the USB cable plugged in and see if that works. Some have also tried using static dryer sheets around the device or if you have to have it plugged in some have used a battery pack with a better USB cable. If you’re on Facebook, join a group called Skytrak users and then search for blinking. A number of people have posted things they’ve done to fix the problem.