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A settlement has been struck between FanDuel and the Major League Baseball Players Association (MLBPA) regarding the purportedly unlawful use of MLB players’ names and photographs on the sportsbook’s website. A voluntary dismissal of the lawsuit, which prevents it from being refiled in the future, is part of the settlement, which was reached on Friday. Court filings state that FanDuel and the MLBPA will each be responsible for paying their own legal fees in this lawsuit.
The lawsuit was initially filed in September by the MLB players’ union, claiming that FanDuel, along with other sports betting platforms, used player names and likenesses without permission, violating publicity rights laws. This lawsuit, which also included Underdog Sports, alleged that these companies displayed images of nearly every active MLB player on their apps and websites.
In the settlement, FanDuel was removed from the New York-based lawsuit, although it remains unclear whether Underdog Sports reached a similar resolution. Notably, a separate lawsuit involving DraftKings and Bet365 remains active in Philadelphia’s federal court.
“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 MLB players stated in their complaint. The union emphasized that athletes must retain control over their likenesses to avoid unwanted endorsements or associations with products they do not support.
The MLBPA’s legal actions have highlighted how crucial it is become to safeguard athletes’ intellectual property rights in the online and gambling sectors. The players demanded the recovery of earnings from the unlawful use of their photos in addition to compensatory and punitive damages.
Similar unlawful use of player photos on social media was the subject of another MLBPA case earlier this year against Sheetz, a chain of convenience stores, and the parent corporation of the Pittsburgh Pirates. Although official documentation has not yet been submitted, the Pirates stated the next day that a verbal settlement had been reached.
These court cases emphasize how businesses must obtain the appropriate permits before using athletes’ names and likenesses in their marketing and platforms, especially as sports betting keeps expanding.