The Major League Baseball Players Association (MLBPA) is doubling down on its legal challenge against sports betting titans DraftKings and bet365. The union has pushed back against claims that the companies were within their rights to use player images in advertisements and apps under the guise of free speech and press protections. MLB Players Inc. (MLBPI), representing the union’s commercial interests, argues that these companies aren’t news organisations and therefore lack the protections they claim.
Pennsylvania Fair Use Statute: A Key Battleground
The dispute hinges on Pennsylvania’s fair use statute, which the MLBPI contends doesn’t support the operators’ arguments. The statute references “news reports” or “news presentations,” terms that MLBPI argues don’t apply to gambling companies promoting their services. In their motions to dismiss, both DraftKings and bet365 cited precedents involving fantasy sports that upheld the newsworthiness of player statistics and images.
However, the union swiftly countered, saying the cited cases occurred outside Pennsylvania and are irrelevant under the state’s specific laws. The argument has raised the stakes, as a decision here could set a precedent that extends beyond sports betting and player rights.
Protecting Players’ Rights
The MLBPA’s lawsuit not only aims to enforce licensing agreements but also highlights the broader implications of unlicensed use of player images. The union asserts that the operators used players’ likenesses without permission, effectively commercialising them without compensation.
A significant point of contention is the standing of MLBPI in the lawsuit. Critics argue that the organisation lacks direct harm, but the union maintains it is acting on behalf of its members, whose rights are directly impacted. According to a report by SBC Americas, the MLBPA insists it has a fiduciary responsibility to protect player interests, solidifying its role in the litigation.
DraftKings and bet365’s Defence Strategy
DraftKings and bet365 have built their defence on legal precedents involving fantasy sports. They argue that player statistics and images are integral to their operations and should be treated as newsworthy content. However, the MLBPA challenges this logic, particularly in a commercial context where player likenesses are used to attract customers rather than inform them.
The companies’ strategy also leans heavily on broader First Amendment protections, but the MLBPA’s argument that gambling apps and advertisements do not qualify as “news reports” could undermine this defence. Legal analysts are closely watching how Pennsylvania’s courts interpret these nuances.
The Broader Implications of Licensing Deals
This case isn’t the only one addressing the misuse of player likenesses. In a parallel lawsuit in the Southern District of New York, Underdog Sports faces allegations of improper use of MLB player images. FanDuel, originally a co-defendant in that case, was dropped after securing a licensing agreement with MLBPI in late 2024.
This trend signals an increasing need for clarity in licensing agreements as the sports betting industry grows. Licensing deals like FanDuel’s not only protect companies from lawsuits but also strengthen their brand credibility. The outcomes of these lawsuits could serve as a blueprint for future negotiations between sports organisations and betting companies.
What’s at Stake for MLB Players and Operators?
The stakes in these legal battles extend far beyond financial settlements. For players, the cases represent a fight for control over their images in a world where sports and betting are increasingly intertwined. For operators, a loss could mean significant changes to how they market their platforms and interact with player data.
The growing tension between the sports industry and betting operators underscores the need for clear legal guidelines. Whether Pennsylvania’s courts side with MLBPI or the betting giants, the ripple effects will likely reshape the future of sports marketing and licensing agreements.
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