A U.S. District Judge denied DraftKings' motion to dismiss claims in a lawsuit filed by MLB Players Inc., alleging unauthorized commercial use of player name, image, and likeness (NIL) in promotional campaigns. The ruling means the case will now advance to the discovery phase, where factual context and intent will be examined.
The lawsuit cited examples where player images, including Yankees star Aaron Judge, were used in digital and social media promotions alongside betting odds without proper authorization or compensation. The court emphasized that content primarily serving a commercial advertising purpose loses protection from right of publicity claims, even if it contains factual information.
This development carries significant implications for how DraftKings and other companies use NIL in commercial marketing, particularly in sports betting and digital advertising. The ruling signals that purely commercial uses of athlete likenesses, without proper licensing, face potential liability and an uphill battle under free speech protections.
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