Players Union Sues Major Sportsbook Operators Over Player Likenesses

Major League Baseball Players Inc. (MLBPI), the union representing professional baseball players, has taken legal action against four major sports betting operators. DraftKings, FanDuel, Bet365, and Underdog Fantasy are accused of unlawfully using the names, images, and likenesses of numerous MLB players to promote their services without proper consent. This lawsuit highlights the growing tension between player unions and sportsbooks over the commercial use of athletes’ identities.

Lawsuits Filed in State and Federal Courts

Two separate lawsuits were filed this week. The first, brought in the Eastern District of New York Supreme Court and targets FanDuel and Underdog Fantasy. Both lawsuits allege similar violations, accusing the four operators of improperly featuring MLB player images in their apps and external marketing, including social media posts promoting player-specific betting props.

MLBPI argues that these actions violate the players’ rights, as the operators did not secure permission to use their likenesses for promotional purposes. Notably, the lawsuit against Underdog focuses on the company’s fantasy sports product, which is currently available in North Carolina, while the other defendants are accused of similar practices in their respective sports betting operations.

At the core of the dispute is the alleged unauthorized use of player images in various betting-related promotions. The lawsuits claim that operators used individual player images next to wagering options within their apps and shared similar content on social media platforms to draw attention to specific bets. MLBPI asserts that the companies used player likenesses in ways that required consent from the players, which they never granted.

Three of the named operators—DraftKings, FanDuel, and Bet365—already have established partnerships with Major League Baseball (MLB) and several individual teams. However, MLBPI contends that these partnerships do not extend to the use of individual player likenesses for specific betting promotions. In its lawsuit against FanDuel and Underdog, MLBPI acknowledged FanDuel’s partnership with the league but reiterated that these actions were not authorized by the players’ union.

The union also included several examples of in-app content and social media posts in both lawsuits. These posts often featured an image of an MLB player alongside promotional material or wagering opportunities regarding that specific player.

Broader Implications for Athletes’ Rights

The lawsuits are part of a broader conversation about the rights of professional athletes to control how their names, images, and likenesses are used commercially. Just weeks before this, the NFL Players Association also took legal action against DraftKings for allegedly breaching an agreement related to the use of player likenesses in non-fungible tokens (NFTs). In that case, the NFLPA claimed that DraftKings violated its contract by prematurely shutting down its NFT Marketplace, which featured NFL player likenesses.

MLBPI’s legal team in the current lawsuit is from Winston & Strawn, a law firm that has represented athletes in several high-profile name, image, and likeness cases. Notably, the firm played a pivotal role in the landmark NCAA case, Alston v. NCAA, which was upheld by the Supreme Court in 2021. This background positions the MLB players’ union to take a firm stand on the issue of player likenesses being used without consent.

A key point of contention in MLBPI’s federal lawsuit is the discrepancy between how betting operators handle MLB players versus NFL players. The union alleges that while the sportsbooks use individual player images for MLB prop bets, they refrain from doing so for NFL bets. For example, DraftKings features MLB player profiles with statistics and accompanying images, but NFL players’ images are absent in comparable sections of the app.

“These featured players’ images are intended to entice s of the platform to click on their tiles, which then takes the s to a page of prop bets pertaining to that player,” the suit explains. The union argues that the use of these images serves a promotional purpose rather than an informational one, which would require proper licensing.

Social Media Posts Under Scrutiny

The lawsuits also take issue with how the operators use player images in their social media posts. MLBPI argues that these posts are not purely informative but rather promotional, designed to drive business to the operators’ platforms. According to the complaint, DraftKings’ social media posts frequently feature MLB players in mid-game action shots, often accompanied by a promotional message encouraging s to place a bet.

Bet365 is also accused of using player images and associated betting options in its social media promotions. The union claims that this practice is intended to capitalize on the celebrity and notoriety of MLB players without securing the necessary rights to use their images.

As part of the lawsuits, MLBPI is seeking both compensatory and punitive damages from the operators. The union is also asking the courts to issue an injunction to prevent further unauthorized use of player likenesses by the defendants. In addition, MLBPI wants an ing and disgorgement of all profits generated through the use of player images.

None of the named companies have responded publicly to the lawsuits as of yet, though the legal challenges come at a time when the sports betting industry is facing increasing scrutiny over its advertising practices. Earlier this month, a study from the University of Bristol revealed that a significant portion of U.S. sports betting operators’ social media posts may violate the American Gaming Association’s advertising code.

The legal battle between MLBPI and the four major sportsbooks is a significant development in the ongoing debate over athletes’ rights to control their names, images, and likenesses in the digital age. With similar cases in other sports leagues, the outcome of these lawsuits could set an important precedent for how player likenesses are used by commercial entities in the future.

Source:

”Baseball MLB players union sues DraftKings, FanDuel over use of names, likenesses”, reuters.com, September 17, 2024.