PA Court Rejects DraftKings’ Motion to Dismiss MLB Union Lawsuit

In the autumn, a baseball player union filed a lawsuit against several betting and gaming operators with strong presence in the United States. The legal claim, filed by the Major League Baseball Players Association (MLBPA) claimed that betting companies misused name, image and likeness (NIL) of baseball players without the required licensing or consent.

Motion to Dismiss Image Rights Violations Suit Rejected

The lawsuits targeted FanDuel, DraftKings, as well as Underdog Sports and Bet365. In New York, the Association filed a lawsuit against Underdog Sports and FanDuel, while in Philadelphia, Pennsylvania, the MLBPA’s claim named DraftKings and Bet365 defendants.

Ultimately, FanDuel dodged the bullet as it agreed to dismiss the image rights violations lawsuit with the MLBPA after it signed a confidential licensing agreement. The announcement of the agreement came in mid-November, dismissing the suit with prejudice, meaning that it cannot be returned to court. Considering the agreement was confidential, no public details were released whatsoever.

The latest development saw DraftKings’ request for dismissal of the image rights violations lawsuit hit a brick wall in Pennsylvania. That is after a decision of US District Judge Karen Marston, who on Monday rejected the operator’s motion to dismiss the MLBPA’s lawsuit.

In her ruling, Judge Marston acknowledged the popularity of baseball, but at the same time pointed to the growing interest in sports wagering. “Here, the two collide in a case where the law is as uncertain as a Phillies playoff run. After a thorough consideration of the briefing and the arguments made by counsel at oral argument on February 18, 2025, the Court denies Defendants’ motions to dismiss,” the ruling reads.

Lawsuit Proceeds, DraftKings Disagrees with MLBPA’s Claims

Notably, the Judge’s decision determined that MLB Players Inc., the corporate subsidiary of the MLBPA, sufficiently presented available plausible claims against the defendants. This, in other words, means that the lawsuit in Philadelphia was given a green light to proceed as the plaintiff presented sufficient claims that prove the matter has legal grounds and can be viewed by the court.

“In sum, the Court finds that MLBPI has plausibly pleaded § 8316 claims against each Defendant,“

wrote US District Judge Karen Marston

It’s important to note that this ruling doesn’t side with either side but rather allows the lawsuit to proceed. Similar to the other legal challenges filed by the Association, the lawsuit against DraftKings claimed that the operator misused the NILs of almost all active players without permission. In addition, the MLBPA claimed that the NILs of players sought to enable the operator to engage with its customers.

Not unexpectedly, DraftKings disagreed with those claims. The leading betting company said that it used publicly available information for the players to deliver statistics, betting odds and news. Moreover, the operator argued that the same information is used by other media outlets that focus on sports.