DraftKings formally resolves MLBPA player rights case as wider legal challenges remain.
A federal judge in Philadelphia has formally dismissed one of the most closely watched player rights cases in the sports betting industry after MLB Players Inc. and DraftKings informed the court on April 6 that they had resolved their dispute.
MLB Players Inc. operates as the business arm of the Major League Baseball Players Association (MLBPA) and filed its original complaint in September 2024 in the U.S. District Court of the Eastern District of Pennsylvania.
The union alleged that DraftKings, alongside fellow operator Bet365, used the names, images, and likenesses of nearly every active MLB player on its US betting apps and in social media posts without a license to do so. The claim rested on Pennsylvania’s right of publicity statute and common law misappropriation, with the MLBPA seeking both compensatory and punitive damages.
DraftKings fought back and claimed it should be allowed to use player imagery because the sportsbook provides newsworthy content. It pointed to a 2018 ruling in Indiana’s Supreme Court in Daniels vs. FanDuel, which carved out a “newsworthy” exception for fantasy sports operators. US District Judge Karen Spencer Marston did not accept that argument.
Marston rejected DraftKings’ motion to dismiss in March 2025 and found that the players plausibly argued that the use was commercial and not journalistic. She stated that bettors could place bets perfectly well without needing to see the player’s photograph. The case then moved towards discovery after that ruling.
Eventually, the two parties agreed to settle in September 2025, and Judge Marston filed a dismissal order on Monday that formally closed the matter.
Other Similar Actions in Sports Betting Industry
The DraftKings case did not stand alone. The MLBPA pursued a coordinated approach to enforce its members’ image rights. In addition to the actions against DraftKings and Bet365, the union brought actions in New York against FanDuel and Underdog Fantasy. FanDuel settled quickly in November 2024 for an undisclosed sum and entered a licensing deal to secure the rights it had previously used without permission.
The parties dismissed the case against Bet365 after reaching a verbal agreement. A separate lawsuit naming the Pittsburgh Pirates and convenience chain Sheetz for improper use of name, image, and likeness was dropped in December 2025 after a similar informal resolution.
The NFL Players Association filed its own federal lawsuit against DraftKings in August 2024. It claimed that the operator owed it about $65 million for breach of contract after using player likenesses to sell NFTs. That case reached a non-binding settlement in January 2025. The scale of this litigation shows the serious revenue opportunity that image rights represent for player associations.
The legal question of exactly where the usage of a player’s name and image becomes acceptable without a license remains uncertain, as no court has definitively ruled on this distinction.
Only this week, the National Basketball Players Association finalized a licensing deal with daily fantasy sports operator PrizePicks. That agreement allows PrizePicks to use the images of multiple NBA players in its marketing, content and promotional initiatives. A pre-emptive license creates a revenue stream for the players’ union from the outset rather than forcing them to sue after the fact, which can prove expensive.
Broader Legal Challenges for DraftKings
The MLBPA settlement represents just one item in a long list of litigation against DraftKings. The company is dealing with a trademark infringement complaint from the NCAA that alleges DraftKings used registered marks like “March Madness” to promote its sportsbook products during the 2026 tournament without authorization.
Then there’s the ongoing wave of consumer protection litigation against DraftKings’ marketing practices. A federal judge allowed a class action to proceed in December 2025 after finding that the “No Sweat” and “No Risk” bet promotions could be considered deceptive advertising.
A lawsuit filing last month alleged that DraftKings and FanDuel designed their micro-betting products to drive addiction. A similar lawsuit was filed in Massachusetts in late March.
The settlement with MLB Players Inc removes one sense of uncertainty for DraftKings, but the company still faces extensive legal issues elsewhere.
The post Judge Closes Book on DraftKings vs. MLBPA Marketing Rights Battle appeared first on Gambling Insider.
