DraftKings Settles MLBPA NIL Lawsuit as Federal Judge Formally Dismisses Case

DraftKings Settles MLBPA Player Imagery Lawsuit — NIL Licensing Now an Operator Cost

DraftKings has reached a private settlement with MLB Players Inc., leading a federal judge in Philadelphia to formally dismiss the right of publicity case — effectively closing the last major unresolved NIL dispute between a top-tier US sportsbook and a major professional sports league.

What Happened

US District Judge Karen Spencer Marston dismissed the case on approximately April 6–10, 2026, after both parties notified the court of a resolution. The MLBPA had alleged that DraftKings, alongside Bet365, used the names, images, and likenesses of nearly every active MLB player in sportsbook apps and social media marketing campaigns without a licence — in violation of Pennsylvania's right of publicity statute and common law misappropriation. Judge Marston had previously rejected DraftKings' argument that the player imagery use was journalistic rather than commercial. Settlement terms, including any licensing fees, player payments, or prospective advertising commitments, were not made public.

Why It Matters

FanDuel settled an equivalent MLBPA claim in November 2024 for undisclosed terms and entered a licensing agreement to formalise its use of player likenesses going forward. DraftKings' settlement almost certainly follows a similar template — which means both of the US sportsbook duopoly now have licensing arrangements with the MLBPA. This sets a clear precedent: using professional athlete imagery in sportsbook marketing without a direct licence is legally untenable. For operators across the US market, the DraftKings and FanDuel outcomes together establish a new cost baseline for marketing to sports fans — league NIL licensing fees must be budgeted alongside media spend.

Industry Context

The MLBPA has filed parallel NIL suits against FanDuel and Underdog Fantasy in New York, which remain pending. As those cases progress, the DraftKings and FanDuel settlements will function as implicit benchmarks for negotiated resolution — meaning the cost and structure of operator NIL arrangements with major US sports leagues is becoming an industry-standard compliance issue rather than an exceptional legal risk.