DraftKings has quietly cut a deal with MLB Players Inc., ending a long-running federal courtroom showdown in Philadelphia over how the sportsbook used big leaguers' names and headshots in its products and social promos. The confidential settlement surfaced in recent court filings that led a Philadelphia judge to dismiss the case on Tuesday. With the agreement sealed, the public is still in the dark on whether the deal involved licensing fees, player payments or any tweaks to DraftKings' advertising playbook.
According to Reuters, the parties filed paperwork in the U.S. District Court for the Eastern District of Pennsylvania asking the court to dismiss MLB Players Inc. v. DraftKings Inc. The filing did not disclose any terms of the settlement.
MLB Players Inc. first took DraftKings to court on Sept. 16, 2024, alleging that the company and other operators splashed the names and images of hundreds of active players across betting apps and social posts without a license, according to GovInfo filings. Those documents spell out claims under Pennsylvania's publicity statute and common-law misappropriation. A related dispute with FanDuel wrapped up in November 2024 after the sides struck a licensing deal, the Associated Press reported.
DraftKings told the court it did not trample on players' publicity rights, arguing its apps and posts merely delivered newsworthy statistics, betting odds and other information in a way comparable to traditional media outlets. That defense, described in coverage of the case, framed the platform as more like a sports page than a billboard. Reuters also noted that U.S. District Judge Karen Marston had earlier rejected DraftKings' bid to toss the lawsuit, finding the players union had plausibly alleged misappropriation and unjust enrichment.
Legal implications for sportsbooks and players
The hush-hush resolution leaves a big question hanging over the sports betting world: where is the legal line between legitimately newsworthy use of an athlete's name or image and promotional, commercial use that needs a license and a check attached. The Indiana Supreme Court's 2018 decision in Daniels v. FanDuel carved out a significant "newsworthy" exception for fantasy sports operators, according to Justia, while the Eastern District of Pennsylvania's March 2025 memorandum in the DraftKings case signaled that not every image that pops up on a betting app automatically gets First Amendment cover. See Daniels v. FanDuel and the Eastern District's memorandum order, available through GovInfo, for more detail on the dueling legal theories.
What comes next
Because this settlement stays behind closed doors, there is no public blueprint for future licensing standards. The deal could simply end this particular fight or quietly influence how the next round of negotiations is framed. Industry outlets had already reported that MLB Players Inc. and DraftKings were in settlement talks in recent months, suggesting the outcome could still shape how aggressively sportsbooks seek licenses and how they feature players' images in promos and social feeds, according to Law360. For now, players, teams and operators will be watching to see whether other pending cases follow this path toward confidential deals or push judges and lawmakers to lay down clearer rules.
