Unlawful Use of Player Likenesses: Sports Betting Giants Face Legal Reckoning

In a move that has sent shockwaves through the sports betting industry, the business arm of the Major League Baseball Players Association (MLBPA) has filed lawsuits against leading sports betting and fantasy sports companies, alleging the unlawful use of players' images and likenesses. The legal battle pits the players' union against industry giants DraftKings, FanDuel, Underdog, and bet365, setting the stage for a high-stakes showdown over the rights and compensation of professional athletes.

Exposing the Exploitation: How Sports Betting Giants Sidestepped Player Consent

Uneven Treatment Across Sports

The lawsuits filed by MLB Players Inc. highlight a stark contrast in the way these sports betting platforms have handled player likenesses across different sports. While the companies have refrained from using NFL player images for their football-related offerings, they have freely incorporated MLB player images into their baseball-focused prop bets and other betting products. This selective approach has raised eyebrows, with the MLBPA alleging that the defendants are "using MLB player images on their platforms for their own commercial advantage, as a means of associating their platforms more closely with these MLB players, to promote the use of their platforms and entice users to place bets."The disparity in treatment between the two major professional sports leagues suggests a calculated strategy by the sports betting giants. By leveraging the popularity and recognizability of MLB players, they have sought to enhance the appeal and engagement of their platforms, potentially drawing in more bettors and generating greater profits. However, this practice has come at the expense of the players' rights and the MLBPA's ability to negotiate fair compensation for the use of their likenesses.

The Legal Battleground: Protecting Player Identities

The lawsuits filed by the MLBPA represent the second and third such legal actions taken by the players' union in the span of a month. In mid-August, the union sued the Pittsburgh Pirates and the gas chain Sheetz, alleging the unauthorized use of player names, images, and likenesses. The swift settlement of that case underscores the MLBPA's determination to safeguard the rights and interests of its members.By taking a proactive stance, the MLBPA is sending a clear message to the sports betting industry: the exploitation of player identities without proper licensing and compensation will not be tolerated. The union's support for Japan's professional baseball union in similar name, image, and likeness (NIL) matters further demonstrates its commitment to protecting the rights of athletes globally.

The Ripple Effect: Implications for the Sports Betting Landscape

The outcome of these lawsuits could have far-reaching implications for the sports betting industry. A victory for the MLBPA would establish a precedent that could embolden other players' unions and professional sports leagues to take similar legal action, potentially forcing sports betting companies to rethink their approach to using player likenesses.Moreover, the financial implications of such a ruling could be substantial. If the courts side with the MLBPA, the sports betting giants may be required to pay significant damages and royalties for their past use of player images, as well as negotiate new licensing agreements going forward. This could significantly impact the profitability and business models of these companies, potentially leading to higher costs for consumers or a shift in the industry's landscape.The stakes are high, and the battle lines have been drawn. As the legal proceedings unfold, the sports betting industry and the players' unions will be closely watched, with the outcome poised to shape the future of how player identities are leveraged and compensated in the rapidly evolving world of sports betting.