Ten years ago, sports leagues hated gambling. Five years ago, leagues embraced gambling Now, DraftKings and FanDuel are being sued by one of the leagues players union. Strange days indeed, as John Lennon once wrote. So what’s the issue? As is the case so many times it all boils down to money. Not so peculiar, mama.
Major League Baseball’s players union filed a lawsuit in federal and state courts, accusing both DraftKings and FanDuel of using images of nearly all active MLB players on their websites and mobile apps without obtaining permission. The players are seeking both compensatory and punitive damages, as well as the return of profits made from the unauthorized use of their names and likenesses.
The complaint laid out in the lawsuits argument says that, “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 statement goes on to state that the DraftKings and FanDuel use of “…player images within their sportsbook platforms is not merely informational — it is promotional.”
The legal action comes as DraftKings expands its operations, including its recent acquisition of Simplebet, a company focused on live sports betting. The cases are titled MLB Players Inc v DraftKings Inc et al, in the U.S. District Court for the Eastern District of Pennsylvania, and MLB Players Inc v. Underdog Sports Inc et al, in the New York State Supreme Court, New York County.
These lawsuits follow a similar action initiated by the National Football League players’ union, which recently sued DraftKings for using NFL player likenesses in non-fungible tokens, or NFTs. In this instance, MLB players pointed out that while DraftKings avoids using NFL player images on its platform, it treats baseball players differently to boost “consumer appeal” and drive betting activity.