NCAA Files Lawsuit Against DraftKings Over March Madness Promotions

DraftKings lawsuit claims the popular sportsbook is infringing on NCAA trademarked phrases, which include March Madness, Sweet Sixteen and Final Four, in its promotions for bets on the tourney.

The sports betting site DraftKings faces a lawsuit brought by college basketball officials for using copyrighted trademarks to promote wagering for the March Madness tournament.

On March 20, the National Collegiate Athletic Association (NCAA) filed a complaint (PDF) in the U.S. District Court for the Southern District of Indiana against DraftKings Inc., alleging trademark infringement, false association, unfair competition and dilution.

The complaint seeks damages and a court order requiring DraftKings to stop using imagery and promotional materials that could mislead consumers into believing the company is affiliated with the NCAA when no such relationship exists.

Sports betting at the state level was legalized by the U.S. Supreme Court in a 2018 decision that allows every state to decide for itself what kind of gambling, if any, is allowed. This led the way for the legalization of sports betting operations, often referred to as sportsbooks. Gambling apps like DraftKings and FanDuel emerged as a result, making gambling available around the clock and letting users place wagers instantly from their phones while watching live games.

Sports Betting Problems

The widespread availability of mobile sports betting has fundamentally changed gambling behavior, leading to a sharp rise in addiction, particularly among younger users who have grown up with smartphones and digital payment platforms.

Critics allege that DraftKings and other operators use aggressive promotions, data-driven algorithms and other tactics designed to identify and target individuals at risk of developing gambling problems. Many of these efforts are focused on college students and young adults, who are often still learning to manage their finances.

The NCAA men’s and women’s March Madness basketball tournament presents a particularly attractive opportunity for sports betting companies. Its bracket-style, single-elimination format spans several weeks and creates a steady stream of high-stakes games, each offering new betting opportunities.

The tournament has long appealed to casual and experienced bettors alike, fueled by school loyalty, widespread participation in bracket pools and the potential for unpredictable upsets. Industry estimates suggest that nearly $4 billion will be wagered on March Madness this year alone.

While the NCAA’s lawsuit centers on DraftKings’ alleged misuse of trademarks in connection with March Madness promotions, it comes amid broader concerns about the role of sports betting platforms in fueling addiction. A growing number of gambling addiction lawsuits filed nationwide claim that companies like DraftKings have designed their platforms to encourage compulsive gambling and profit from users’ significant financial and emotional losses.

According to the lawsuit, the NCAA accuses DraftKings of using terminology and imagery that may confuse some consumers into believing the NCAA is working with, or has approved, DraftKings gambling promotions during the contest. This includes the use of terms like “March Madness,” “Sweet Sixteen” and “Elite Eight” in DraftKings’ promotions.

The NCAA argues that these and other terms are its sole domain and should not be used in gambling promotions for the organization’s tournaments without its permission.

Additionally, the NCAA runs a program called “Draw the Line,” which advocates against sports betting abuse and harassment. It educates student athletes about the dangers of sports betting, monitors more than 22,000 competitions each year for illegal betting, and calls for states to be more stringent on what types of bets are allowed.

“The NCAA has purposefully avoided any appearance of affiliation with gambling companies – including by declining sportsbook sponsorships, banning sports betting by student-athletes and staff, opposing highly damaging prop bets and micro-bets, and launching initiatives such as its ‘Draw the Line’ campaign – because preventing harassment and improper influence in college sports, and preserving the integrity, reputation, and goodwill of the NCAA championships require a firm separation from commercial gambling.”

– NCAA v. DraftKings Inc.

The lawsuit lists dozens of incidents where DraftKings promotions included NCAA trademark phrases, like the Final Four and March Madness itself. The organization has asked the court to issue a permanent injunction on DraftKings to bar its use of these phrases, in addition to the other claims.

Sports Betting Lawsuits

As concerns grow over the rapid expansion of sports betting among college-age users, a wave of lawsuits continue to be filed against DraftKings, FanDuel and other platforms, alleging the companies use predatory practices to encourage excessive gambling.

Sports betting addiction lawyers are investigating claims nationwide, 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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