DraftKings, MLBPA Settle Philadelphia Suit Over Player Rights

DraftKings and MLB Players Inc. reached a settlement that prompted a federal judge in Philadelphia to dismiss a lawsuit over use of Major League Baseball players’ names, images and likenesses. The U.S. District Court for the Eastern District of Pennsylvania closed the case after the parties informed the court on April 6, 2026 that they had resolved the dispute.

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 displayed nearly every active MLB player’s name and photograph on U.S. betting apps and in social media posts without a license. The complaint asserted violations of Pennsylvania’s right of publicity statute and common-law misappropriation and sought compensatory and punitive damages.

DraftKings argued the uses were protected as newsworthy content and cited a 2018 Indiana Supreme Court decision in Daniels v. FanDuel. In March 2025, U.S. District Judge Karen Spencer Marston denied DraftKings’ motion to dismiss, finding the players had plausibly shown the usage was commercial rather than journalistic. Judge Marston wrote that “bettors could place bets perfectly well without needing to see the player’s photograph,” and the case proceeded toward discovery after that ruling.

The parties did not disclose settlement terms in court filings. Judge Marston entered a formal dismissal order after the court was notified the claims were resolved.

The suit was part of a broader enforcement effort by player unions over image rights. FanDuel settled with MLB Players Inc. in November 2024 and entered a licensing agreement for rights it had used. The case against Bet365 was dismissed after the parties reached a verbal agreement. A separate complaint that named the Pittsburgh Pirates and convenience chain Sheetz was dropped in December 2025 following an informal resolution.

Other player associations have pursued similar actions. The NFL Players Association sued DraftKings in August 2024, alleging the operator owed about $65 million for use of player likenesses to market NFTs; that matter reached a non-binding settlement in January 2025. The National Basketball Players Association finalized a licensing deal with PrizePicks that allows the operator to use NBA player images in marketing and content.

DraftKings faces additional legal challenges. The NCAA has filed a trademark infringement complaint alleging the operator used registered marks including “March Madness” during the 2026 tournament without authorization. A federal judge allowed a class action to proceed in December 2025 that challenges DraftKings’ “No Sweat” and “No Risk” promotions as potentially deceptive. New lawsuits have also alleged that micro-betting products were designed to encourage addictive play, including a filing in Massachusetts in late March.

Courts have not issued a definitive nationwide ruling on when use of a player’s name or image requires a license rather than qualifying as protected expression. Operators and unions continue to resolve disputes either through licensing agreements or litigation on a case-by-case basis.