The lawsuit, filed by the Major League Baseball Players Association (MLBPA) last September, claims that DraftKings ran advertisements using players’ identities without the union’s approval. This includes using players’ headshots next to gambling odds and prop bets, as well as player images in social media promotions.

DraftKings Claims Use of Public Info Is Permissible As News

Representatives from DraftKings claimed before U.S. District Judge Karen S. Marston last Wednesday that the company’s use of player images should be covered by an exemption under a state publicity law reserved for news stories.

Despite Marston having already rejected that argument, Megan K. Bannigan of Debevoise & Plimpton LLC said the Third Circuit will review it as an issue of first impression.

Bannigan stressed that moving the case forward would give both parties a clearer understanding of what constitutes news.  

“Even with the proper legal scope, I still think we have the question of whether odds equal news,” Marston said.

Bannigan replied: “We think it’s not a factual question if the exception is broad enough to apply.”

David Greenspan of Winston & Strawn LLP also disputed DraftKings’ claims, contending that DraftKings’ use of NIL was not covered by the news exemption.

“This is a casino,” Greenspan said. “They’re not news.” 

Unauthorized NIL Point of Contention

The union stated in a filing on April 17 in Pennsylvania’s Eastern District U.S. Court that the sportsbook’s request had no basis and would not help the case move closer to a resolution.

“Apparently hoping that if it throws enough against the wall, something will stick, DraftKings … has not shown any substantial ground for difference of opinion as to the two standing issues it raises,” the filing reads.

 Bet365 was initially named a co-defendant but was later dropped from the complaint by MLBPA.

In the filing, the union’s lawyers stated: “In short, DraftKings has not shown, and cannot show, that an interlocutory appeal would ‘materially advance the ultimate termination of the litigation,’ nor that the order denying its motion to dismiss involves a ‘controlling question of law’ on which there is ‘substantial ground for disagreement.

“This Court should deny the motion, deny any stay of discovery, and allow this case to move promptly toward trial.”

Another suit alleging improper use of NIL was filed the same month in New York against FanDuel and Underdog Fantasy. The union has since reached an undisclosed settlement with FanDuel. The case was “dismissed with prejudice,” meaning it cannot be filed again at a later date.

In March, Marston rejected DraftKings’ request to dismiss the lawsuit. Marston said that MLB Players Inc., — a corporate subsidiary of the MLBPA, presented plausible claims for “violation of the common law right of publicity” and used players’ NIL “without authorization and for their own commercial gain” in promotional content.

DraftKings disagreed, stating it used publicly available information.

Marson said in her ruling: “Baseball may still be America’s favourite pastime, but sports gambling has become a serious threat to baseball’s crown.”  

 Partnership with PENN Secured

MLB Players Inc. is now partnered with PENN Entertainment, allowing both ESPN Bet (U.S.) and theScoreBet (Canada) to incorporate player NIL into their betting platforms for marketing and retail purposes.

OneTeamPartners President Frank Arthofer announced last month that the agreement “brings fans closer to the game while unlocking new business opportunities in sports betting.”

A similar agreement was reached between MLB Players Inc. and Fanatics Sportsbook in September 2024. 

The post DraftKings MLBPA News Argument to be Reviewed by the Third Circuit appeared first on CasinoBeats.

The agreement, secured through OneTeam Partners, allows both ESPN Bet (U.S.) and theScoreBet (Canada) permission to incorporate MLB player names, images, and likenesses into their sports betting platforms for marketing and retail campaigns.

“By integrating MLB player rights into PENN Entertainment’s platforms, this partnership brings fans closer to the game while unlocking new business opportunities in sports betting,” Frank Arthofer,  President of OneTeam Partners, said in a release. 

He continued: “It highlights the growing influence of players in shaping premium, fan-focused betting experiences while enhancing player NIL rights and widening distribution.”

PENN operates 32 retail sportsbooks, including 19 under the ESPN Bet brand. In 2021, it acquired theScore, which is now the Toronto Blue Jays’ official gaming partner.

Strengthening Connections

ESPN Bet has performed far below prior market expectations and has struggled to compete with the likes of DraftKings and FanDuel. Upon launch, Penn aspired to secure 20% of the sports betting market share across the United States by 2027. Updating investors after its fourth-quarter earnings call, this has been revised to 5% by the end of 2025. 

Underwhelming performance has continued to fuel speculation that Penn may look to opt out of the 10-year deal valued at $2 billion that was signed in 2023. 

PENN’s VP of Operations, Jason Birney, hopes the MLBA partnership will help PENN deliver an enhanced product for fans. “Partnering with MLB Players Inc. strengthens our connection to the league and its star players and creates additional opportunities to engage fans throughout the season,” he said. 

The defending World Series champion Los Angeles Dodgers opened the MLB season against the Chicago Cubs in Tokyo on 18-19 March. Action on American shores got underway the week after. 

Navigating Legal Hurdles

MLB Players Inc. agreed to a similar deal with Fanatics Sportsbook in October 2024. A month prior, in September 2024, the MLBPI brought lawsuits against bet365, DraftKings, FanDuel, and Underdog Fantasy for alleged unauthorized use of player names and likenesses. 

FanDuel and the MLBPA agreed on a settlement after both parties agreed to a licensing agreement. 

Last month, a federal judge denied DraftKings and bet365’s attempts to dismiss the lawsuit. Judge Marston of the U.S. District Court for the Eastern District of Pennsylvania found that the MLBPI had “sufficiently pleaded violations of Pennsylvania’s right of publicity statute” and “common law misappropriation of likeness.” 

The post PENN Entertainment Enters Agreement with MLB Players Inc. appeared first on CasinoBeats.