The NCAA is taking DraftKings to federal court in Indiana over the alleged use of its intellectual property related to March Madness.
The National Collegiate Athletic Association (NCAA) is taking DraftKings to federal court in Indiana over the alleged use of its intellectual property related to March Madness.
At issue is the use of phrases tightly bound to the NCAA tournament’s identity, including March Madness, Final Four, Elite Eight, and Sweet 16.
The filing claims that DraftKings, which is leading the March Madness pricing race according to analysis from Citizens, leans on protected tournament branding in a way that goes beyond routine reference and into infringement.
The association argues these marks were not used in a neutral, descriptive sense but positioned prominently within DraftKings’ betting interface and promotions. That distinction, subtle on the surface, sits at the centre of the dispute’s legal nuance.
The lawsuit claims that DraftKings incorporated these phrases into navigation bars, marketing banners, and contest branding, violating IP laws.
The dispute also draws attention to the timeline of DraftKings’ usage. References to March Madness were found in the company’s online content as far back as 2014, before sports betting was legalised in the US.
Although DraftKings did not associate March Madness with betting at that time, it did so when it introduced its Brackets product in 2019.
That launch saw “the first time that people can use the DraftKings Sportsbook app to fill out their brackets and win cash for their selections,” according to a DraftKings press release at the time.
According to the NCAA, DraftKings’ new approach creates a misleading impression of official partnership or endorsement.
The lawsuit also highlights a contest labelled March Mania, which the organisation considers intentionally similar to its flagship branding.
As legal analysts have noted, this factor could be the most problematic for DraftKings, as this would represent a promotion, rather than informational use of the tournament’s identity.
Sportsbooks and sports organisations at odds
The case is part of a growing tension between collegiate athletics and sports betting. The NCAA has always taken the position that there needs to be a clear distinction between gambling and its championships.
The complaint filed by the NCAA highlights its concern over younger users, especially those who are college-aged, as they could interpret this as a promotion of this activity.
DraftKings has denied these claims and appears to be ready to take this to court.
It has taken the position that this is a nominative fair use, as it is referencing tournament-related words.
The company maintains that the terms are presented in plain text to describe available betting markets, rather than to imply ownership or partnership.
In a statement, DraftKings explained: “DraftKings does not use the term March Madness as a trademark, but rather uses it in plain text and as a fair use in the same manner that other tournaments are displayed, such as the NIT, in order to accurately identify the different tournaments and their respective games.”
The timing of the case is critical. The NCAA is asking for a temporary restraining order before the Sweet 16 round commences this Thursday (26 March).
The deadlines set by the court require swift submission of both parties’ cases, with a decision to be reached within days. This is a reflection of the commercial interest at play during the tournament’s betting window.
Billions of dollars are set to be placed on March Madness, making it one of the most profitable events of the year for the sports betting industry.