In a legal battle between professional athletes and sports betting giants, Major League Baseball’s players union has reached a settlement with FanDuel. With allegations that the platform used players’ names, images, and likenesses without permission, this lawsuit accused FanDuel of profiting off the identities of hundreds of MLB players and is part of a growing wave aimed at protecting athletes’ commercial rights.

The MLB union has agreed to a confidential licensing deal with FanDuel. Still, there are similar lawsuits against other major sports betting platforms. This includes DraftKings, who are still making their way through the courts. So, this settlement could be just the beginning of a larger showdown over how athletes’ likenesses are used, and how much control they should have over their own image. 

MLB union lawsuits standing up for players

The union had alleged that FanDuel “flagrantly” violated the rights of nearly every active MLB player. This included profiting off the players’ identities in violation of their legal rights. As part of the settlement, FanDuel and the union have signed a confidential licensing agreement. According to Inc., the players also agreed to dismiss their claims “with prejudice”, meaning they can never be refiled. While FanDuel has confirmed the settlement, neither the union nor its attorneys have commented further on the details as of now.

The MLB’s action against FanDuel is just one piece of a larger trend in the sports world – the union has also filed similar lawsuits against FanDuel’s rival, DraftKings. Similar cases have been filed against other sports betting companies, which are still ongoing and reflect a broader push by professional athletes to assert control over the commercial use of their names, images, and likenesses.

For athletes, these rights are a crucial part of their MLB careers, allowing them to monetize their public personas and protect against exploitation. Moreover, this lawsuit also highlights the growing tension, especially with online betting continuing to be popular and in demand.

The fight isn’t over, though.  

Following the footsteps of this MLB settlement, the National Football League’s players union has filed another lawsuit against DraftKings. They alleged the company of misusing NFL player likenesses in the world of non-fungible tokens (NFTs). The NFLPA’s lawsuit, filed in New York federal court just a few weeks ago, accused DraftKings of refusing to honor the terms of a lucrative licensing deal for NFL players’ names, images, and likenesses – a deal that was signed with much fanfare in 2021. 

As the lawsuit claims, DraftKings allegedly built its billion-dollar empire on one basic principle: if a customer places a losing bet, they must pay up. But now, it seems the company is trying to make out of its commitment with an escape clause in the contract. According to the NFLPA, DraftKings is using the recent collapse of the NFT market as an excuse to cancel the deal, even though the gambling platform still owes the NFLPA roughly $65 million.

In a nutshell, DraftKings went all-in on the NFT craze, launching a platform to sell digital collectibles featuring NFL player likenesses. But when the NFT market quickly soured earlier this year, DraftKings closed its marketplace in July. The company stopped paying what it owed, resulting in the NFLPA arguing that the contract’s escape clauses don’t apply in this case. As of now, DraftKings has yet to file a response to the lawsuit or comment publicly, but the NFLPA is standing firm in its pursuit of the money it claims it’s owed.