Union of Major League Baseball Players Granted Permission to Pursue Lawsuit Against DraftKings by Judge
Revamped Article:
DraftKings finds itself in hot water after a lawsuit lodged by the MLB Players Association over the company's alleged misuse of athlete likenesses refused to be brushed aside. This legal squabble revolves around the unauthorized use of athletes' names, images, and likenesses (NIL) in sports betting promotions.
The Eastern District of Pennsylvania's Judge Karen Marston deemed it plausible that DraftKings negligently failed to secure the necessary authorization to commercially exploit MLB players' pictures and names.
DraftKings originally stood side by side with FanDuel in the complaint back in September, but FanDuel chose to settle the issue through a confidential licensing agreement in November. Unexpectedly, DraftKings decided to fight the allegations, claiming in February that no court has ever held accountable a sportsbook for any "public-facing, newsworthy statistics" - a category that encompasses players' likenesses and names.
The question of whether DraftKings' actions meet the criteria for a public interest exception has yet to receive a verdict. The case will now move forward, leaving the legal world on tenterhooks.
It's worth noting that the lawsuit isn't an isolated incident. bet365 and Underdog Fantasy are also embroiled in similar controversies. In Underdog Fantasy's case, they face separate lawsuits centered on the misuse of players' NILs.
The MLB Players Association asserts that DraftKings employed players' NILs in their sportsbook advertisements and social media posts without seeking approval, infringing upon publicity rights and unjustly profiting from the practice. Furthermore, they claim exclusive licensing authority allowing them to prevent unauthorized use and seek damages if necessary.
Conversely, DraftKings argues that their usage falls under the realm of permissible "news reporting," commonly including the pairing of player statistics with betting odds. They also challenge the MLBPA's standing to sue on behalf of individual players and have attempted an early appeal to contest jurisdiction and the applicability of substantive law.
The potential outcome of this legal battle could pave the way for future NIL rights interpretations in sports betting, striking a delicate balance between player protections and commercial free speech.
- The public is now aware of a lawsuit filed against DraftKings by the MLB Players Association, claiming the company's alleged misuse of athlete likenesses in sports betting promotions.
- The statistics and names of MLB players, which DraftKings has used in their sportsbook advertisements and social media posts, are at the heart of the current legal dispute.
- While FanDuel chose to settle the issue through a confidential licensing agreement, DraftKings has decided to fight the allegations, arguing that their usage falls under the realm of permissible "news reporting."
- If DraftKings is found guilty, it could set a precedent for futureinterpretations of NIL rights in sports betting, potentially impacting other companies like bet365 and Underdog Fantasy, who are also embroiled in similar controversies.
