Date Published: September 16, 2024, 10:19h.
Last Updated: September 16, 2024, 10:19h.
The Major League Baseball Players Association (MLPBA) — the union representing the league’s athletes — is taking legal action against four gaming companies, namely Bet365 and DraftKings, for alleged unauthorized utilization of players’ names, images, and likeness in their advertisements and betting platforms.
Through a lawsuit filed in the US District Court for the Eastern District of Pennsylvania, the MLB players union is seeking damages and punitive action against Bet365 and DraftKings. Additionally, a separate legal action has been initiated in the New York State Supreme Court, New York County targeting FanDuel and Underdog Fantasy. The MLBPA condemned the defendants’ misuse of player images as “blatant,” expressing concerns about the potential negative impact on the athletes’ future earnings.
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,” said the union in a legal document.
Professional athletes, including MLB players, participate in advertising campaigns for various companies across different sectors and are compensated for their involvement. However, the MLBPA argued that some players may not wish to be associated with sports betting, but the perception of endorsement may arise when their images are prominently displayed on a gaming platform.
For DraftKings, Second Players Union Suit
DraftKings is facing its second lawsuit from a players union. A previous lawsuit filed by the NFL Players Association (NFLPA) alleges that DraftKings owes the labor group up to $65 million related to a nonfungible tokens (NFTs) deal that went awry.
The NFLPA claims that it granted DraftKings permission to use players’ names, images, and likeness in its NFT marketplace and an NFT-based fantasy game named Reignmakers, but the gaming company has failed to fulfill its financial obligations. The MLBPA is being represented by the New York-based firm Inston & Strawn LLP, which is also handling the NFLPA case.
The baseball players union noted that the gaming companies do not use NFL players’ images in a similar manner and suggested that the use of baseball players’ images is primarily intended to attract bettors.
“Defendants’ use of player images within their sportsbook platforms is not merely informational — it is promotional,” the union’s lawyers said in the complaint. “Users could bet that the Phillies will beat the Marlins, or that Bryce Harper will hit more than two home runs in a given game, without seeing Harper’s valuable image. Indeed, both DraftKings and Bet365 offer the same types of bets in other sports without using player images.”
Player Images Increasingly Valuable
Marketing strategies such as cash rewards or free bets are crucial for sportsbook operators to attract new customers. High-profile firms in the betting market, such as DraftKings and FanDuel, are known for their extensive use of celebrity endorsements, including current and former athletes who are compensated for appearing in the companies’ advertisements. The value of athlete images, particularly those of professional players, has been on the rise, making money a key factor in the MLPBA’s legal actions against Bet365, DraftKings, FanDuel, and Underdog.
Although determining the exact value of an individual athlete’s name and image is challenging due to varying levels of fame, companies are willing to pay significant sums for the commercial use of athletes’ names and images.
For instance, it is estimated that the MLBPA and NFLPA earn hundreds of millions annually from licensing agreements with video game developers, while trading card companies pay tens of thousands per player in major sports.