Published on: November 18, 2024, 02:32h.
Last updated on: November 18, 2024, 02:32h.
The Major League Baseball Players Association (MLPBA) resolved a legal dispute with FanDuel regarding the sportsbook operator’s alleged unauthorized use of union members’ name, image, and likeness (NIL).
In September, the union representing the league’s athletes filed lawsuits against multiple sports wagering companies in New York and Philadelphia courts, alleging unauthorized use of Major Baseball (MLB) players’ images on their sports betting platforms without consent or compensation.
The settlement between FanDuel and the union specifies that the suit was dismissed with prejudice, preventing the MLBPA from initiating the same legal action in the future.
(The union and FanDuel) shall each bear their own attorneys’ fees and costs incurred in connection with this matter,” according to a copy of the settlement.
The professional baseball labor group acknowledged the agreement but has not provided further comments on the issue.
Resolution Could Benefit Other Operators
When the MLBPA’s legal action was revealed in September, FanDuel was one of four gaming companies targeted by the union. The others were bet365, DraftKings, and Underdog Fantasy. FanDuel and Underdog Fantasy were sued by the union in the New York State Supreme Court, New York County. It is uncertain if Underdog has also been removed from that lawsuit.
The MLPBA’s lawsuit against bet365 and DraftKings was filed in the US District Court for the Eastern District of Pennsylvania. There is no update on settlements related to that litigation, but the agreement with FanDuel could set a precedent for similar resolutions.
This could be advantageous for all parties involved, especially for one of the aforementioned sportsbook operators facing civil litigation on multiple fronts.
Unions Striving to Protect Players’ NIL Rights
Athletes’ NIL is akin to their intellectual property, and player unions of professional leagues aim to safeguard those rights. While athletes often appear in advertisements for various companies, including sportsbook operators, they are compensated for their participation.
The basis of the MLBPA’s legal action against the four gaming companies was the allegation that the operators used images of MLB players to attract customers for player proposition bets without compensating the union or its members.
“For professional athletes, controlling the commercial use of their names, images, and likenesses is a significant return on their career investment,” stated the union in the initial lawsuit.
By asserting that the “flagrant” misuse of athletes’ images could negatively impact their long-term earnings potential, the MLBPA also argued that the statistical nature of baseball made it unnecessary for gaming companies to use player images to encourage bettors to place prop bets.