DraftKings Settlement Reached in Lawsuit Over MLB Gambling Promotions

Lawsuit claimed DraftKings and Bet365 used the images and likenesses of nearly every active Major League Baseball player without acquiring permission from them or the league.

The union representing Major League Baseball players has reached a settlement to resolve a lawsuit alleging that DraftKings and Bet365 illegally used their likenesses during sports betting promotions without first gaining permission.

Originally filed in the U.S. District Court for the Eastern District of Pennsylvania back in September 2024, the MLB Players Inc. complaint (PDF) indicated that the two sports betting apps used the image, name or likeness of nearly every currently active MLB player. However, the lawsuit claims the sportsbooks never got the players’, or the league’s, permission to do so.

Since the lawsuit was filed, there has been a growing concern nationwide over the popularity of sports betting as more states approve the practice since the Supreme Court made it legal to do so in a landmark 2018 decision.

Sports Gambling Addiction Lawsuits

Dozens of states have legalized sports betting in recent years. However, with the expansion has come reports of increased gambling addiction problems nationwide, particularly among young people who are comfortable with digital payments through mobile apps on their smart devices. This group of young gamblers, who are also often managing their own finances for the first time, appear to be particularly susceptible to sports betting promotions.

Critics claim that by employing aggressive and sometimes deceptive promotions, data-tracking algorithms and logging players’ behavior, sites like DraftKings, Bet365 and FanDuel encourage those who show signs of gambling addiction to make more frequent and larger bets.

This has led to the filing of numerous sports betting addiction lawsuits nationwide in recent months, each involving similar allegations that the betting platforms intentionally encourage compulsive gambling and self-destructive wagering to increase their profit margins.

In addition to individual claims, DraftKings, Bet365 and FanDuel have faced additional litigation from states, cities and sports organizations for allegedly violating numerous state gambling and consumer protection laws.

MLB Players Gambling Settlement

According to the 2024 lawsuit, DraftKings and Bet365 never sought permission to use players’ images in promotions, noting that the companies could have just used the athletes’ names without violating trademark and copyright laws. The use of players’ likenesses was purely for the purpose of gaining consumers’ attention, leading to more betting and increasing profits, the players’ union noted.

“Defendants’ use of player images within their sportsbook platforms is not merely informational—it is promotional. 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.”

– MLB Players Inc. v. DraftKings Inc. et al

However, after about a year and a half of litigation, U.S. District Judge Karen Marston, of the Eastern District of Pennsylvania, issued a court order (PDF) on April 6, dismissing the lawsuit with prejudice, indicating that the parties have informed the court they have reached a settlement agreement.

Details of the settlement have not yet been released. The lawsuit originally included FanDuel as a defendant as well, but the sportsbook reportedly reached a settlement with the union in late 2024.

Sports Betting Addiction Lawsuits

While the sports betting apps have reached settlements with the MLB players union, they are still fighting an increasing number of gambling addiction lawsuits filed by individual consumers nationwide.

Observers expect thousands of similar claims to be filed in the coming months and years, indicating that individuals have been exploited by predatory algorithms and promotions used by DraftKings, FanDuel and Bet365.

Sports betting addiction lawyers are investigating claims across the U.S., focusing on whether these platforms intentionally foster compulsive behavior and profit from users’ escalating losses. Platforms named in ongoing investigations include:

To find out whether you qualify for a sports betting lawsuit, submit information about your potential claim for an attorney to review. All cases are handled on a contingency fee basis, meaning you pay nothing unless a settlement is obtained in your case.

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