MLB Players Union Sues Sports Betting Operators

A round of new lawsuits could throw a real wrench into the sports betting industry. The Major League Baseball Players Association filed suit on Monday against FanDuel, DraftKings, bet365, and Underdog Fantasy, arguing that the companies have illegally used names, images, and likenesses (NIL) of players.

“For professional athletes, the ability to control the commercial use of their names, images, and likenesses is a crucial return on their substantial career investment,” the union noted in a statement.

Growing Industry Is Big Business

In recent years, online betting operators have entered into partnerships with various sports leagues to gain access to official league data and logos while also gaining sponsorship deals in the process. Legalized sports betting has added significantly to leagues’ revenues, but the lawsuits could be a bump in the road for the industry.

ESPN reported that the union treats baseball differently than sports like football, using the player’s images to increase “consumer appeal” in a game that is much more statistics-oriented when it comes to wagering.

According to the Players Association, having the union help control players’ name, image, and likeness also “helps players avoid being perceived as supportive of companies and products they dislike,” ESPN also noted.

The union called the industry “big business” and alleged that the companies have violated various state laws in using players’ images. The companies have yet to respond to the lawsuit.

The union’s actions come after college athletes gained significant ground in controlling their own name, image, and licensing over the last few years. Many collegiate athletes are now making millions of dollars through advertising and sponsorship deals.

Recent data points to just how big the sports betting industry has grown since the Supreme Court overturned a virtual ban on betting outside Nevada in 2018. The country’s commercial gaming revenue reached $17.63 billion for the second quarter. Or that, Americans wagered $31.75 billion on sports, generating $3.16 billion in quarterly revenue, up 35.3% from 2023.