DraftKings, MLBPA Settle in Philadelphia; Suit Dismissed

DraftKings and MLB Players Inc. informed the U.S. District Court for the Eastern District of Pennsylvania on April 6 that they had resolved their dispute, and U.S. District Judge Karen Spencer Marston filed a dismissal order this week that formally closed the case. The parties reached the agreement in September 2025 after litigation that began in 2024.

MLB Players Inc., the business arm of the Major League Baseball Players Association, filed the complaint in September 2024. The union alleged that DraftKings and Bet365 used the names, images and likenesses of nearly every active Major League Baseball player on their U.S. betting apps and on social media without a license. The complaint invoked Pennsylvania’s right of publicity statute and common-law misappropriation and sought compensatory and punitive damages.

DraftKings argued its content was protected as newsworthy and pointed to a 2018 Indiana Supreme Court decision that created a newsworthy exception for fantasy operators. In March 2025 Judge Marston rejected DraftKings’ motion to dismiss, finding the players had plausibly alleged commercial use rather than journalistic use. Marston wrote that “bettors could place bets perfectly well without needing to see the player’s photograph.” After that ruling the case moved into discovery before the parties reached a settlement in September 2025.

The MLBPA pursued similar actions elsewhere. FanDuel settled a New York case in November 2024 for an undisclosed sum and entered a licensing agreement. The action against Bet365 was dismissed after the parties reached a verbal agreement. A separate suit naming the Pittsburgh Pirates and convenience chain Sheetz for alleged improper use of player names and images was dropped in December 2025 following an informal resolution.

Other player associations have taken licensing and legal steps. The National Basketball Players Association finalized a licensing deal with daily fantasy operator PrizePicks this week, allowing PrizePicks to use multiple NBA player images in marketing and promotional content. The NFL Players Association filed a federal suit against DraftKings in August 2024 seeking roughly $65 million over use of player likenesses to promote NFTs; that dispute reached a non-binding settlement in January 2025.

DraftKings remains subject to additional litigation. The company faces a trademark infringement complaint from the NCAA alleging unauthorized use of marks such as “March Madness” during the 2026 tournament. A federal judge allowed a class action over “No Sweat” and “No Risk” bet promotions to proceed in December 2025. Separate lawsuits in recent months allege that micro-betting products were designed to encourage addictive play; a comparable complaint was filed in Massachusetts in late March.

The dismissal removes the Philadelphia case from the court docket. DraftKings continues to defend or negotiate other pending legal matters.