The NCAA is going after sports betting giant DraftKings for using several phrases related to the NCAA Division I basketball tournaments.
On Friday, the NCAA filed a lawsuit against DraftKings in a federal court in Indianapolis alleging DraftKings is illegally using officially trademarked NCAA phrases in its sports betting products, including “March Madness,” “Final Four,” “Elite Eight,” and “Sweet Sixteen.”
The NCAA is seeking an emergency restraining order halting DraftKings from using the phrases.
The lawsuit marks the first formal legal action the NCAA has taken against sports betting companies or prediction markets over the use of phrases associated with college sports events.
“The company’s unauthorized use of its trademark is flatly contrary to one of the Association’s most deeply held institutional values: that sports betting must not be associated with, endorsed by, or linked to NCAA championships or the student-athletes who compete in them,” the NCAA said in an announcement.
The NCAA also said it was concerned that fans, including “college students and young adults who are particularly susceptible to gambling harm,” might see these trademarked phrases and assume the NCAA has given permission to DraftKings to use them—thereby tacitly endorsing betting on college sports.
The NCAA does not endorse sports betting, and NCAA President Charlie Baker has lobbied for state laws across the country prohibiting prop bets on college sports, which the NCAA has said are the reason players are subjected to abuse by fans online and can be susceptible to engaging in illegal sports betting activity or game manipulation themselves. (The NCAA, as well as federal law enforcement authorities, have found multiple instances of game manipulation, some of which was related to prop bets.)
DraftKings issued a statement to FOS on Saturday.
“DraftKings does not use the term March Madness as a trademark, but rather uses it in plain text and as a fair use in the same manner that other tournaments are displayed, such as the NIT, in order to accurately identify the different tournaments and their respective games. This is protected speech under the First Amendment and is not a violation of any brand’s trademark. We are confident that the courts will deny this request for an injunction.”
The NCAA could also soon go after prediction markets like Kalshi and Polymarket.
Baker has sent multiple requests to the CFTC asking for the federal body to pause all college sports offerings on prediction markets. The NCAA has also warned prediction markets to clarify on their platforms that they are not endorsed by the NCAA.
Several prediction markets examined by Front Office Sports offer markets on March Madness, but do not use the term “March Madness.”
Polymarket’s international site, which is not regulated by the CFTC, does not use the phrase “March Madness,” but does use “Elite Eight” and “Sweet Sixteen.” Polymarket’s U.S. app, which is regulated by the CFTC, references the NCAA but does not mention other marks registered to the organization.
