MLBPA Sues DraftKings, FanDuel Over NIL Use

Major League Baseball Players Association (MLBPA) sued DraftKings and FanDuel on Monday, alleging the sports betting companies and two others of using the names and likenesses of hundreds of players on their platforms without permission.

MLBPA seeks compensatory, punitive damages from DraftKings, bet365, FanDuel, and Underdog Fantasy

According to Reuters, players are seeking compensatory and punitive damages from DraftKings and Britain’s bet365 Group in Philadelphia federal court. The plaintiffs are also asking for fair compensation from FanDuel and Brooklyn-based Underdog Fantasy in a New York state court in Manhattan.

Furthermore, MLB players called online sports betting “big business” and accused the defendants of “flagrant” violations of state laws protecting the right of publicity. The players said nearly every active player’s image appears on their websites and mobile apps.

“For professional athletes, the ability to control the commercial use of their names, images, and likenesses is a crucial return on their substantial career investment,” the players said.

Players’ images have frequently been seen on sports betting websites and mobile apps.

However, MLBPA said players believe that could be misleading. Gamblers could be under the impression that those players support wagering on games.

Additionally, MLB players added that several of them are not interested in contracts with sportsbooks. They want to avoid being perceived as supportive of companies and products they dislike.

Lawsuits were filed three weeks after the NFLPA sued DraftKings for breach of contract, alleging sportsbook owed $65 million

Of course, Monday’s lawsuits were filed three weeks after the National Football League Players Association (NFLPA), represented by the same law firm as the MLB players, sued DraftKings for breach of contract. The NFLPA alleged that DraftKings owed approximately $65 million from a licensing agreement.

In Monday’s complaints, the MLB players said the defendants don’t use NFL player likenesses on their platforms. The plaintiffs said the only reason to treat baseball players differently was to increase “consumer appeal” and draw more bets. The “core information” that bettors need is statistical data, not what players look like.

According to the complaints, for example, users could bet that the Philadelphia Phillies’ Bryce Harper or the New York Mets’ Pete Alonso will hit more than two home runs in a given game, without seeing each player’s “valuable image.”

The cases are MLB Players Inc v DraftKings Inc et al, U.S. District Court, Eastern District of Pennsylvania, No. 24-04884; and MLB Players Inc v. Underdog Sports Inc et al, New York State Supreme Court, New York County.

Moreover, ESPN reported that it was not able to reach bet365 after business hours. In fact, the other three sportsbooks have not yet responded for comment. Other sportsbooks could be guilty of using names and likenesses of players without permission for their brands as well.