DraftKings was denied a motion to dismiss the case brought against it by MLB Players Inc. (MLBPI) for misappropriation of publicity and unjust enrichment.
In simpler terms, MLB players are suing one of the leading USA sports betting sites for using players’ identities without permission on its sportsbook and social media posts.
DraftKings’ Motion To Dismiss MLB Case Rejected By Federal Judge
For the second time, DraftKings failed in its appeal against the lawsuit by US District Judge Karen Marston.
Previously, the Massachusetts sportsbook had attempted to dismiss the case in March but Marston argued DraftKings’ pitch of the app’s use of images equating to news simply wasn’t a fair explanation.
“DraftKings did not adequately raise the propriety of group licensing as an issue in its briefing on the motion to dismiss.”
Marston said that while some of the online casino‘s content may look like news reporting to the naked eye, not all of it qualified and some posts were blended with advertising.
She also questioned whether features like custom betting odds shown next to player images equates as news.
MLB players have enjoyed another positive step in the right direction and the ruling means the lawsuit will now proceed through normal litigation which could lead to a trial.
MLBPI, which manages all commercial activities of the organization, believes bettors find online sports betting apps like DraftKings more attractive and trustworthy as they contain images of league stars.
DraftKings’ main play in court was arguing Pennsylvania’s ‘news report’ exemption in right of publicity law, but the MLBPI believes that exemption doesn’t apply to a gambling operator.
DraftKings Heads For Ugly Conclusion, Not So Lucky As Rival Operator FanDuel
In November of last year, the MLBPI settled a lawsuit with FanDuel who it also accused of using the names and likenesses of hundreds of MLB players on its platform without permission.
FanDuel and the union signed a confidential licensing agreement but it doesn’t look like DraftKings is going to get the amicable ending to this case as its rival did.
The MLBPI also sued Britain’s bet365 Group for the same misappropriations – with the outcome of that case yet to be confirmed – as well as Underdog Fantasy.
Joe Lyons is a betting industry writer for GamblingIndustryNews with years of experience on reputable gambling websites. Joe specialises in long form content in the world of sports betting and gambling. Joe is recognised as an expert in sports fields such as horse racing, soccer, NFL and NBA.
