In a significant legal move, the Major League Baseball Players Association (MLBPA) has filed lawsuits against four major sportsbooks: DraftKings, bet365, FanDuel, and Underdog Fantasy. The lawsuits, which have been brought to both federal and state courts, center around the unauthorized use of player names, images, and likenesses in various promotional materials and applications. This action not only highlights ongoing disputes regarding player rights in the sports betting industry but also raises questions about the broader implications for athletes and their ability to control their commercial identities.
Overview of the Lawsuits
The MLBPA’s legal actions consist of two separate complaints. The first was filed against DraftKings and bet365 in the US District Court in Philadelphia. The second complaint targets FanDuel and Underdog Fantasy in a New York State court. Both lawsuits make similar allegations, claiming that these sportsbooks have used the images of MLB players without obtaining the necessary permissions. This includes their appearances in apps, marketing materials, and social media posts that highlight individual player props.
Specific Allegations Against Underdog Fantasy
While the lawsuit against Underdog Fantasy primarily pertains to its fantasy sports product, as opposed to its sportsbook operations currently active in North Carolina, it underscores the MLBPA’s concerns regarding player image rights across various platforms. The union argues that Underdog is leveraging player likenesses in a way that misappropriates their identities for commercial gain.
Compensation and Damages
The MLBPA’s suits seek not only compensation for the alleged unauthorized use but also punitive damages. The union argues that sportsbooks like DraftKings and bet365 typically do not utilize player images for bets in other sports, raising questions about why they do so for baseball. According to the complaint against DraftKings, the defendants’ use of player images is characterized as promotional rather than merely informational. The complaint states:
“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.”
Context: The Broader Landscape of Sports Betting
These lawsuits come in the wake of increasing tension between sports leagues, players, and betting operators. The landscape of sports betting has changed dramatically in recent years, especially following the repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018, which allowed states to legalize sports betting. As a result, sportsbooks have proliferated, and with them, the potential for conflicts over player rights.
Recent Legal Precedents
This legal action follows a similar case involving the National Football League Players Association (NFLPA), which recently sued DraftKings. The NFLPA alleged that DraftKings intended to breach a contract that allowed the operator to lease player likenesses for NFT products in its marketplace. However, after a judge denied DraftKings’ motion to dismiss the lawsuit concerning the legality of the NFT product, the company announced the closure of its NFT marketplace and Reignmaker contests. This situation adds another layer to the ongoing discussions about how player rights are managed in the rapidly evolving sports betting and digital asset landscapes.
Player Rights in the Betting Industry
The crux of the MLBPA’s lawsuits hinges on the broader issue of player rights—specifically, the control athletes have over their names, images, and likenesses (NIL). Historically, athletes have struggled to retain control over how their identities are used in commercial settings. The advent of sports betting, combined with the increasing popularity of fantasy sports, has only intensified these challenges.
The Importance of NIL for Athletes
For professional athletes, particularly in high-revenue sports like baseball, the ability to control the use of their likenesses is vital. It represents not only a source of income but also a means of protecting their personal brand. As the betting industry continues to grow, the potential for exploitation of player images increases, making it essential for players and their unions to assert their rights vigorously.
Comparisons with Other Sports
The MLBPA’s complaint points out that other sports leagues have been more proactive in negotiating terms for the use of player images. For instance, the NBA has a licensing agreement that allows players to benefit from their likenesses in the gambling sector. The differences in how leagues and players associations approach these issues highlight the need for a more unified strategy among sports organizations.
The Future of Sports Betting and Player Rights
As the MLBPA pursues legal action against these sportsbooks, the outcome of these lawsuits could set significant precedents for player rights in the betting industry. If the courts side with the MLBPA, it could compel sportsbooks to negotiate licensing agreements with player associations and athletes, fundamentally altering the dynamics of how player images are used in marketing and betting contexts.
Implications for Sportsbooks
For sportsbooks, a ruling against them could mean increased costs associated with licensing player images. It could also lead to a reevaluation of marketing strategies that rely heavily on player likenesses. The potential financial ramifications may encourage sportsbooks to establish clearer guidelines and agreements regarding player rights.
Potential for Industry-Wide Changes
The current lawsuits might also spark a broader conversation within the sports industry about the need for comprehensive regulations governing the use of player images and likenesses. As the betting landscape continues to evolve, there will likely be increased pressure on all stakeholders—players, leagues, and sportsbooks—to create a more equitable framework for managing player rights.
The MLBPA’s lawsuits against DraftKings, bet365, FanDuel, and Underdog Fantasy represent a crucial moment in the ongoing struggle for player rights in the sports betting industry. By challenging the unauthorized use of player images, the MLBPA is not only seeking compensation but also asserting the importance of athlete autonomy in an increasingly commercialized landscape. The outcomes of these lawsuits will likely have lasting implications for how players, leagues, and sportsbooks navigate their relationships in the future, paving the way for potential reforms in player rights and compensation structures within the sports betting arena.
As the industry continues to grow and evolve, the need for clear regulations and agreements that protect player rights will only become more urgent. The MLBPA’s legal actions could very well mark a turning point in this ongoing battle, setting precedents that might reshape the commercial landscape of sports for years to come.