On September 16, 2024, a significant legal action shook the sports betting industry as MLB Players Inc., the commercial arm of the Major League Baseball Players Association, initiated a lawsuit against two major betting operators, DraftKings and bet365. The case, filed in the U.S. District Court in Philadelphia, alleges unauthorized use of player names and images on the companies' sportsbook platforms and associated advertising materials.
This legal move comes amidst the rapidly expanding sports betting landscape in the United States. Since the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act in 2018, over 30 states have legalized sports betting. The global sports betting market, valued at over $80 billion in 2023, has seen exponential growth, with the U.S. market alone projected to reach $39 billion by 2033.
The lawsuit claims violations under Pennsylvania law, including unauthorized use of name or likeness, common law misappropriation of publicity and identity, and unjust enrichment. MLB Players Inc. is seeking both an injunction to halt the alleged unauthorized use and monetary damages.
This case highlights the increasing value of image rights in the digital age, particularly in sports. The MLBPA, founded in 1966, has long been at the forefront of protecting players' interests. Through its business arm, MLB Players Inc., it handles licensing and sponsorships, ensuring players receive fair compensation for the use of their likeness.
It's worth noting that MLB itself has had official partnerships with various sports betting operators since 2018, making this lawsuit particularly intriguing. The average MLB player salary in 2023 was approximately $4.9 million, underscoring the significant financial interests at stake.
DraftKings, founded in 2012 and headquartered in Boston, and bet365, established in 2000 in the United Kingdom, are both major players in the sports betting industry. As of the time of reporting, neither company had responded to requests for comment on the lawsuit.
This legal battle unfolds against the backdrop of Pennsylvania's sports betting landscape, which was legalized in 2017, with the first bets placed in 2018. The state has since become a significant market for sports betting operators.
As the case progresses, it could potentially set important precedents for how betting companies use athlete likenesses in their operations and marketing. The outcome may have far-reaching implications for the relationship between professional sports leagues, their players, and the burgeoning sports betting industry.