FanDuel Reaches Settlement with MLB Players Association in NIL Lawsuit

FanDuel Reaches Settlement with MLB Players Association in NIL Lawsuit

By Michael Harrison

November 21, 2024 at 01:13 AM

FanDuel and the Major League Baseball Players Association (MLBPA) have reached a settlement in their name, image, and likeness (NIL) dispute. The lawsuit, originally filed in September, alleged unauthorized use of players' images on FanDuel's sports betting platform without proper consent or compensation.

The settlement was dismissed with prejudice, meaning the MLBPA cannot file the same lawsuit again. According to the agreement, both parties will cover their own legal fees and costs.

This case was part of a broader legal action by the MLBPA against multiple sports betting operators, including bet365, DraftKings, and Underdog Fantasy. The lawsuits were filed in both New York State Supreme Court and the US District Court for the Eastern District of Pennsylvania.

The MLBPA's primary complaint centered on sportsbooks using player images to promote proposition betting without authorization or compensation. The union argued that this unauthorized use could potentially harm players' long-term earning potential, particularly given baseball's statistical nature, which doesn't require player images to facilitate prop betting.

This settlement with FanDuel could potentially set a precedent for similar resolutions with the other gaming operators involved in the litigation. While the MLBPA has acknowledged the agreement, they have not provided additional comments on the matter.

The case highlights the growing importance of NIL rights in professional sports, as athletes and their unions seek to maintain control over how their images are used in commercial applications, particularly within the expanding sports betting industry.

Additional cases against bet365, DraftKings, and Underdog Fantasy remain pending, with no confirmation yet of similar settlements being reached.

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