The Major League Baseball Players Association (MLBPA), the union representing MLB athletes, has filed a lawsuit against four gaming companies, including Bet365 and DraftKings, accusing them of using players’ names, images, and likenesses without permission in their advertisements and betting platforms.
The lawsuit, filed in the U.S. District Court for the Eastern District of Pennsylvania, seeks financial compensation and punitive damages from Bet365 and DraftKings. In a separate lawsuit in the New York State Supreme Court, FanDuel and Underdog Fantasy are also targeted for similar allegations. The MLBPA criticized the misuse of player images as “flagrant,” suggesting that such actions could harm athletes’ future earning potential.
“For professional athletes, controlling the commercial use of their names, images, and likenesses is a critical part of their career investment,” the union stated in legal filings.
While it is common for professional athletes, including MLB players, to feature in advertisements for various brands, they are typically compensated for these endorsements. Some athletes, both active and retired, have participated in ads for sportsbook operators. However, the MLBPA argues that many players may not want to be associated with gambling, yet their images are used in ways that create that impression when featured on betting platforms.
DraftKings Faces Second Lawsuit from Players Union
This lawsuit marks the second time DraftKings has faced legal action from a players union. The NFL Players Association (NFLPA) recently filed a separate suit, claiming DraftKings owes up to $65 million related to a failed nonfungible token (NFT) deal. The NFLPA alleges that DraftKings was granted permission to use players’ names, images, and likenesses in its NFT marketplace and an NFT-based fantasy game called Reignmakers but failed to meet its financial commitments. Both the MLBPA and NFLPA are represented by New York-based law firm Winston & Strawn LLP.
The MLBPA asserts that there is no need for gaming companies to use baseball players’ images in their platforms except to entice bettors. The MLBPA also pointed out that other sports bets are offered without player images.
Rising Value of Player Images
The use of player images in advertising and promotions, particularly for sportsbooks, is a significant part of how companies like DraftKings and FanDuel attract new bettors. Current and retired athletes are often compensated for their appearances in these ads, making player images valuable assets to both leagues and athletes.
Although it is difficult to quantify the value of an individual athlete’s name or image due to varying levels of fame, the revenue generated by licensing agreements is substantial. For instance, the MLBPA and NFLPA earn hundreds of millions annually from licensing deals with video game publishers, and trading card companies pay substantial sums for the use of athletes’ images.
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