Lawsuit Claims Sportsbooks Getting Boost from Images
While sportsbooks like FanDuel have been using player likenesses for some time, the MLB Players Union is no longer willing to let it slide. They believe that operators use those images as a marketing tool to attract more customers without the players seeing a dime.
While the league’s stars make millions of dollars in guaranteed money, the majority of players do not. A licensing deal will ensure that all players receive equal compensation for the use of their likeness in sportsbooks.
Settlement Sets New Standard for Sportsbooks
The lawsuit filed by the MLB players union was the first of its kind since the legalization of sports betting in the US. Some operators have been using the likenesses of players from pro sports leagues, but it appears that time has come to an end.
In addition to FanDuel, the players' union also filed lawsuits against DraftKings, bet365, and Underdog over the same issue. The industry leader is the first of the four to reach a deal, but it is expected others will soon follow.
Fanatics First Sportsbook to Sign Licensing Deal
While FanDuel was dealing with the MLB player union’s lawsuit, Fanatics decided to opt for the path of least resistance. The operator signed a non-exclusive licensing deal with the union, helping them continue to use the likenesses of players without interruption or a costly legal battle.
Fanatics’ decision to make a deal signaled they believed FanDuel and other rivals would soon follow suit. Had the sportsbooks attempted to fight these lawsuits, Fanatics could have been stuck with an agreement it didn’t need.