MLBPA, DraftKings Agree to Settle NIL Suit

The MLB Players Association has agreed to a settlement with DraftKings after alleging that the gambling company illegally used players’ names, images, and likeness to promote prop bets.

The union’s business arm, MLB Players, Inc., filed a lawsuit against the sports betting giant in Sept. 2024 in the Eastern District of Pennsylvania claiming the platform used player images without permission for promotional purposes. In March, a district judge dismissed DraftKings’ attempt to drop the case, saying MLB Players, Inc. made plausible claims that the sportsbook had violated the players’ right of publicity by using their images without permission and for commercial purposes.

The attorneys in the case have told the court that a settlement in principle has been reached, Jeffrey Kessler, the sports lawyer representing the MLBPA, tells Front Office Sports. The terms of the settlement were not disclosed.

The MLBPA originally named Bet365 as another defendant in the case, and filed a separate lawsuit against FanDuel and Underdog Fantasy in New York. The union and FanDuel quickly settled in November for an undisclosed amount, and the MLBPA also said earlier this year it had dismissed the case against Bet365.

A representative for the MLBPA declined to comment. A spokesperson and attorney for DraftKings did not respond to requests for comment.

The MLBPA also last year sued the Pirates and convenience chain Sheetz alleging improper use of players’ NIL, though it dropped the case in December following a verbal agreement. DraftKings, meanwhile, faced a $65 million suit from the NFL Players Association for breach of contract in a deal that included use of the players’ likenesses to sell NFTs on a since-shuttered marketplace. After the NFLPA blasted DraftKings’ motion to dismiss, the sides agreed in principle to a settlement in January before dropping the suit in March.