MLBPI, FanDuel Sign New Marketing Agreement in Wake of Lawsuit

MLBPI, FanDuel Sign New Marketing Agreement in Wake of Lawsuit

MLB Players Inc. and FanDuel have signed a licensing agreement that allows FanDuel to use “player-centric” features in its online sportsbooks starting next year.

“We look forward to the collaboration with MLB Players Inc., which will allow for the development of player-centric opportunities on our platforms,” FanDuel President Christian Genetski said in a statement.

The agreement expands on the two companies’ existing deal, which allows FanDuel to use player likenesses for social media posts. OneTeam, a partner of the Major League Baseball Players Association, worked with MLBPI and FanDuel to execute the deal.

The expanded partnership comes just weeks after a federal judge dismissed a lawsuit between MLBPI and FanDuel.

Why the new MLBPI/FanDuel agreement matters

Before FanDuel had its new deal in place, it was under strict rules for how it used player likeness. For example, it could use images of players for its social media accounts. However, MLBPI prohibited it from using images of players on its sports betting apps.

The language of the new agreement — “player-centric” — is general enough to make it seem like FanDuel might be able to use player headshots in its sportsbook app. However, neither side has given any indication of what “player-centric” means in practice.

That being said, MLB Players Association President Tony Clark said the new deal gives MLBPI a “new category of revenue.” Clark’s language may indicate that FanDuel is paying extra to use player likenesses in its online sportsbooks at some point in the future.

Lawsuits continue for other sportsbooks, DFS platform

The MLBPI lawsuit against FanDuel also included daily fantasy sports (and sportsbook) operator Underdog.

While the league organization ended its lawsuit against FanDuel, its tussle with Underdog continues. In the suit, MLBPI alleges that Underdog used player likenesses in its DFS app. MLBPI has ongoing lawsuits against bet365 and DraftKings for the same reason.

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