Federal Judge Denies DraftKings, bet365 Motion to Dismiss in MLB Players’ NIL Lawsuit

A federal judge has denied DraftKings and bet365’s attempts to dismiss a lawsuit filed by MLB Players, Inc. (MLBPI) surrounding the use of MLB players’ images and names.

Judge Marston of the U.S. District Court for the Eastern District of Pennslyvania found that MLBPI had “sufficiently pleaded violations of Pennsylvania’s right of publicity statute” and “common law misappropriation of likeness.” Marston’s ruling allows MLBPI to pursue legal claims that the defendants exploited player likeness for commercial gain without consent.

Judge Rules That MLBPI Can Proceed with Lawsuit Over MLB Player Likeness Rights

“After a thorough consideration of the briefing and the arguments made by counsel at oral argument on February 18, 2025, the Court denies Defendants’ motions to dismiss,” wrote Marston.

MLBPI, the licensing arm of the MLB Players Association, alleges that the two gambling giants used the names and images of MLB players to promote sports betting platforms without permission or compensation.

The complaint states that:

• DraftKings and bet365 displayed player headshots next to gambling odds and prop bets across their sportsbooks.
• Player images appeared in social media promotions. The ruling reads that the posts were often structured as multi-slide posts that “begin with what appears to be a piece of sports reporting yet conclude with an advertising encouraging viewers of the post to place a bet.”
• The MLBPI alleges: “Defendants have reaped billions of dollars in revenue through the expansion of the online sportsbook betting marketplace.”

Defendants sought to dismiss the case, arguing that their use of players likeness was:

• Protected by Pennsylvania’s “news reporting” exception, which permits media to use names and images in journalistic content.
• Permitted under the First Amendment, they presented factual sports data rather than advertising.
• Not a violation as the MLBPI is not a “natural person” and “lacked standing.”

Given that the MLB Players Association had legally assigned the rights to use, license, and sublicense players’ likenesses for commercial marketing, the Court rejected the Defendants’ contention that “MLBPI is not a proper plaintiff for its statutory claims.”

Marston’s ruling added: “The Court questions whether each Defendants’ unique odds and prop bets — especially when unassociated with statistics or a discussion of historical or current events — constitute ‘news reports.’”

The judge also noted that not all users of player images in sportsbooks or social media can be considered news reporting, especially when they include betting promotions. “Viewing the allegations in the Complaint in the light most favorable to MLBPI, Defendants include headshots of each player in connection with, among other things, available prop bets on their respective sportsbook platforms,” the ruling read.

DraftKings and bet365’s citing of the First Amendment were not dismissed but will need “further legal analysis.” It has been suggested that the First Amendment defense be addressed later in the legal process.

After the motion to dismiss is denied, the case will proceed to ‘discovery,’ where MLBPI will seek evidence on how the two companies financially benefited, internal marketing and licensing policies, and possible past negotiations between the player association and betting platforms.

How the Outcome of This Case Could Impact NIL Rights in Professional Sports

The ruling in the case could set a precedent for traditional and crypto betting operators in the future. If the MLBPI prevails, operators may need explicit licensing agreements with player unions before featuring them in betting-related content.

It could also add stricter regulations on how player odds, promotions, and marketing materials featuring sports stars who are still competing are used. Industry analysts believe that the eventual decision could go far beyond baseball and impact licensing in the NBA, NFL, and NCAA.