DraftKings' legal challenge dismissed by court in MLB players' class-action lawsuit
Straight Up on DraftKings' Legal Drama
DraftKings, the well-known sportsbook, is finding itself in hot water yet again. This time, it's an ongoing dispute with the Major League Baseball Players Association (MLBPA) over the misuse of players' names, images, and likenesses (NIL) on their platform.
In the latest twist, a United States federal judge has turned down DraftKings' plea to fast-track an appeal in this lawsuit. The judge's decision, issued in a court memo on May 21, rejected all four specific legal questions DraftKings had certified for immediate appellate review.
The judge was particularly harsh on DraftKings, calling out their questionable attempts to circumvent class action rules and dismissals from sublicensees. The judge's opinion was that these issues were not adequately raised during the initial motion to dismiss and were, therefore, too late for appeal.
The MLBPA had filed a motion in the Eastern District of Pennsylvania in April 2025, urging the court to reject DraftKings' request for an interlocutory appeal. An interlocutory appeal is a rare legal mechanism that allows mid-case appeals before a final verdict. The MLBPA argued that the appeal was "unfounded and premature," lacking the necessary legal grounds and serving only to delay the proceedings.
The case, initially filed in September 2024, accuses DraftKings of misusing MLB players' NILs in advertisements and on its sportsbook platform without their consent. FanDuel was dropped from the case after reaching a confidential settlement and signing a licensing agreement in November 2024, while bet365 remains a co-defendant. Underdog Fantasy faces similar claims in a separate legal action.
This isn't the only legal battle DraftKings is facing. Five individuals from Pennsylvania have filed a lawsuit against the company, alleging that DraftKings knowingly used manipulative marketing tactics to exploit individuals struggling with gambling addiction. They claim the company ignored safe gambling practices, profiting off vulnerable users in the process.
This lawsuit could have significant implications for the sportsbook industry, challenging how companies use player likenesses in marketing and operations. Stay tuned for further developments in this intriguing legal saga.
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DraftKings, amidst its ongoing dispute with the Major League Baseball Players Association (MLBPA), is also under scrutiny for sports-betting activities, specifically its use of MLB players' names, images, and likenesses (NIL) on its platform. The MLBPA's lawsuit, initially filed in September 2024, accuses DraftKings of misusing players' NILs in advertisements and on its sportsbook platform without consent.
