MLB Union Granted Permission to Pursue Legal Action Against DraftKings in Court
DraftKings, the well-known sportsbook operator, has found itself in hot water once again, this time facing a lawsuit from the MLB Players Association for misusing the likenesses of athletes. The MLB Players Association's commercial arm, MLB Players Inc., has accused DraftKings of utilizing the names, images, and likenesses of MLB players in sportsbook apps and social media ads without proper licensing rights, potentially violating Pennsylvania's publicity and privacy statutes.
The U.S District Judge Karen Marston in the Eastern District of Pennsylvania has denied DraftKings' motion to dismiss this claim, deeming it a plausible allegation. The case will now push forward as it's deemed too early to decide if DraftKings' usage meets the standard for a public interest exception in right-of-publicity claims.
The lawsuit, initially involving both DraftKings and FanDuel, saw FanDuel settling the issue in November. DraftKings, however, has chosen to fight back, stating that no court has implemented a right-of-publicity liability for any "publicly-available, newsworthy statistics." This includes the likeness and names of players. The company also argues that its use of athletes' likenesses falls under news reporting or commentary, protected under the First Amendment.
With Bet365, a co-defendant, withdrawing from the case following the motion's denial, the battle between DraftKings and the MLB Players Association will continue in the District Court, with potentially significant consequences for the sports betting industry. A ruling against DraftKings could pave the way for explicit licensing requirements for sportsbook operators using athletes' names, images, and likenesses in their promotional materials.
- The ongoing lawsuit against DraftKings, initiated by the MLB Players Association, alleges the misuse of athlete likenesses in sportsbook apps and social media ads, potentially breaching Pennsylvania's publicity and privacy statutes.
- Initially, both DraftKings and FanDuel were parts of the lawsuit, but FanDuel settled the issue in November, whereas DraftKings has decided to contest.
- DraftKings argues that its use of athletes' likenesses falls under news reporting or commentary, protected under the First Amendment, and no court has imposed a right-of-publicity liability for "publicly-available, newsworthy statistics."
- The battle between DraftKings and the MLB Players Association will proceed in the District Court, with the potential outcome significantly impacting the sports betting industry, as a ruling against DraftKings could necessitate explicit licensing for sportsbook operators using athletes' names, images, and likenesses in promotional materials.
