DraftKings and the MLB player union’s for-profit licensing arm have asked for a 30-day discovery stay while they negotiated a resolution to the dispute.
DraftKings and the MLB player union’s for-profit licensing arm have asked for a 30-day discovery stay while they negotiate a resolution to their dispute.
Major League Baseball Players Inc. (MLBPI) and the sports betting operator have moved closer to resolving their legal dispute over unauthorised use of player images, with both parties jointly requesting the stay to facilitate settlement discussions, which the court has approved.
In a letter filed on 24 July with the US District Court for the Eastern District of Pennsylvania, the companies revealed they had been “actively exchanging and negotiating settlement terms” and believed they were “close to reaching a resolution”.
The case centres on allegations that DraftKings and other major sportsbooks have been using MLB player images and likenesses on their betting platforms without proper licensing or consent from MLBPI, the for-profit subsidiary of the MLB Players Association.
The parties said in their joint motion: “The requested stay will thus allow the parties to continue facilitating those discussions, prevent the further incursion of costs related to document collection, review, and production, as would be required to meet the current substantial completion of document production date of July 25, 2025.”
DraftKings sued by MLB player’s union
MLBPI originally filed lawsuits in September 2024 against several leading sports betting companies, including DraftKings, FanDuel, Underdog Sports and bet365, alleging “knowing and deliberate misappropriation” of player images for commercial purposes.
The organisation claimed that since early 2024, these companies had prominently featured images of nearly every active MLB player on their websites and mobile apps to increase consumer appeal and attract more bets.
While FanDuel settled its dispute by forging a new licensing agreement with MLBPI in November 2024, DraftKings continued to fight the case in court.
In March, US District Judge Karen Marston rejected DraftKings’ bid to dismiss the lawsuit, ruling that MLBPI had plausibly alleged violations of players’ publicity rights under state law.
The parties noted that if settlement talks fail within the 30-day period, they would need to reassess whether they could complete fact discovery within the court’s existing schedule.