FanDuel and MLB Players Settle Lawsuit Over Player Likeness

Michael Savio
By: Michael Savio
11/15/2024
Sports Betting
Photo by HerSilverHammer, Public domain, via Wikimedia Commons

Key Takeaways

  • FanDuel has signed a confidential licensing agreement with MLB Players Union
  • DraftKings, bet365, and Underdog are all facing similar lawsuits
  • Fanatics signed a licensing deal with the union soon after the lawsuits were filed

The battle between FanDuel Sportsbook and the MLB Players Union has finally come to an end.

A spokesperson from FanDuel has shared that the sportsbook operator has reached a deal with the union over the use of player likenesses. The company signed a licensing deal that will allow it to continue using players’ names and images and settle the lawsuit filed by the union.

While details around the deal remain confidential, it ends any speculation that FanDuel would fight the legal challenge.

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. 

Michael Savio covers the US online casino industry, giving readers insights and information they won’t find anywhere else. He has followed the retail industry since his time living in Las Vegas and has continued to do so as the online industry has taken off. Michael covers everything from online casino reviews to industry news, making him one of the most trusted insiders in the business. Check out Michael’s latest articles at casinos.com to see what he has to offer!