DraftKings, MLB Players Near Settlement in Image Rights Lawsuit
DraftKings and the Major League Baseball Players Inc. (MLBPI) are close to settling their legal battle over the use of player images in sports betting. The two sides have asked for a 30-day pause in court proceedings to finalize the agreement.
A Dispute Over “Willful Misappropriation”
The dispute began in September 2024 when the players’ union sued DraftKings and other top sportsbooks. The MLBPI accused the operators of the “knowing and willful misappropriation” of player likenesses to promote their betting products.
The lawsuit claimed that featuring photos of nearly every active MLB player on their platforms was a deliberate strategy to attract customers and drive wagers without a proper licensing agreement.
The MLBPI, which is the commercial licensing arm of the players’ union, argued this was a clear violation of the players’ right of publicity.
A Halt in Proceedings to Finalize a Deal
In a joint court filing on July 24, DraftKings and the MLBPI stated they are “actively exchanging and negotiating settlement terms” and are “close to reaching an agreement.” A federal judge has approved their request for a 30-day stay on the discovery process.
This pause will allow both parties to focus on finalizing the deal without incurring further legal costs associated with document production and review. If the talks fall through, they will have to reassess their ability to meet the court’s existing schedule.
DraftKings’ move toward a settlement comes nearly a year after its main rival, FanDuel, resolved a similar lawsuit. FanDuel was also sued by the MLBPI but quickly settled the dispute in November 2024 by signing a new licensing agreement with the players’ union.
DraftKings, however, chose to fight the allegations in court for several months. This strategy hit a major roadblock in March when a U.S. district judge denied the company’s motion to dismiss the case.
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