America’s biggest sports gambling companies, FanDuel and DraftKings, are finding themselves in hot water with Major League Baseball’s players union which is suing the pair for misusing the names and likeness of hundreds of players.
The union accuses the sports betting companies of having used these assets without formal approval or agreement with the organization, and a complaint has been filed with various courts across the country.
The plaintiffs seek compensatory and punitive damages from the companies, including bet365, and Underdog Fantasy, a daily fantasy sports operator, which are also considered to have violated intellectual property and legitimate assets by using them without explicit permission from the union.
The union’s accusations are simple. DraftKings, FanDuel, UnderdogFantasy, and bet365 have been using the image and likeness of players, with hundreds of people featured in the betting websites’ online platforms and mobile apps.
In a highly critical statement of the matter, the union simply stated: "For professional athletes, the ability to control the commercial use of their names, images, and likenesses is a crucial return on their substantial career investment."
The plaintiffs also said that the companies named in the lawsuits only used their image and likeness to boost their consumer appeal and to draw more fans to bet on sports. In doing so, however, they have failed to compensate MLB players properly.
The lawsuit against DraftKings and bet365 were filed in a Philadelphia federal court, and the one lawsuit against Underdog Fantasy and FanDuel will be seen in a New York State court instead. How successful these legal actions will be remains to be seen.
This is not the first time that companies from the sports betting sector have faced similar pressure. For example, DraftKings finds itself in trouble its suspension of the non-fungible token (NFT) marketplace, following legal headwinds that prompted the company to withdraw from the space.
The NFL’s players union has launched a lawsuit, however, arguing that DraftKings still owed them money for using their image and likeness in the now-suspended marketplace.
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