Sportsbook operator DraftKings Inc DKNG faces a lawsuit from the Major League Baseball Players Union, a move that could dampen high expectations for other sports like the NFL, which just kicked off its season.
What Happened: The Major League Baseball (MLB) Players Union has filed a lawsuit against DraftKings and Bet365 for using names and images of MLB players without permission.
The lawsuit, filed in Philadelphia federal court Monday, alleges DraftKings is in violation of Pennsylvania law, as reported by Bloomberg.
Both named sportsbooks used alleged images of MLB players in marketing campaigns, according to the report.
Benzinga reached out to DraftKings for comment and did not hear back.
Pennsylvania is home to two MLB teams: Pittsburgh Pirates and Philadelphia Phillies.
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Why It’s Important: Monday’s lawsuit sees the players union seeking compensatory and punitive damages. The lawsuit also demands DraftKings stop using the names and images on the platform.
The players’ union is requesting that profits from the use of MLB players’ images be taken away from the sportsbook and turned over to the players.
“Defendants’ use of player images within their sportsbook platforms is not merely informational — it is promotional,” lawyers for the players’ union said Monday.
The lawsuit said both DraftKings and Bet365 offer player prop bets in other sports without using player images.
“Users could bet that the Phillies will beat the Marlins, or that Bryce Harper will hit more than two home runs in a given game, without seeing Harper’s valuable image.”
Monday’s lawsuit could have a ripple effect for the way players are listed on sportsbooks and how player props are marketed to users.
DKNG Price Action: DraftKings stock closed 1.16% to $38.24 on Monday versus a 52-week trading range of $25.74 to $49.57. DraftKings stock is up 13.9% year-to-date in 2024.
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