- Underdog Fantasy settled a lawsuit with the MLBPA on May 28, 2025, over unauthorized use of player images, ending a New York case started in September 2024.
- The MLBPA sued Underdog and FanDuel for using player likenesses without permission, with Underdog’s settlement likely including a licensing deal.
- The resolution may push fantasy sports operators to secure player image rights, ensuring a more regulated market while Underdog focuses on growth.
The Lawsuit and Settlement
In September 2024, the MLB Players Association (MLBPA), through its commercial arm MLB Players Inc., sued Underdog Fantasy and FanDuel in New York Supreme Court, alleging unauthorized use of player names and images in their apps and social media promotions.
The lawsuit claimed these operators used player likenesses to boost betting without permission, despite having no licensing agreements with the union. FanDuel settled in November 2024, leaving Underdog as the sole defendant.
On May 28, 2025, Underdog announced a settlement, ending the New York case. You can imagine the relief for Underdog, which faced potential penalties but can now move forward with a licensing deal.
Why the MLBPA Took Action
The MLBPA argued that operators like Underdog were profiting from player images without consent, even though some had deals with MLB itself. For example, in-app displays paired player photos with betting options, and social media posts used images to promote wagers.
This raised concerns about player rights and fair compensation. You might wonder why this matters: the union wants to ensure players control their likenesses, especially in a growing fantasy sports market.
The settlement likely includes a licensing agreement, similar to FanDuel’s, allowing Underdog to use player images legally. This follows a trend, as Fanatics and PENN Entertainment also secured such deals.
The Eastern District of Pennsylvania Court denied DraftKings’ motion to dismiss in March and denied a request to certify parts of that ruling so that the operator could appeal the ruling earlier this month.
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Impact on the Fantasy Sports Industry
This resolution could set a precedent for how fantasy sports operators handle player likenesses. With Underdog’s settlement, you’ll likely see more platforms seeking formal agreements with the MLBPA to avoid legal trouble.
The case highlights the tension between innovation and regulation in fantasy sports, especially as states like New York and Florida scrutinize whether certain contests resemble illegal sports betting.
This might mean a more regulated but stable fantasy sports experience, with clearer rules for operators. However, it could also increase costs for platforms, potentially affecting user fees or prize structures.
What’s Next for Underdog
Underdog, valued at over $1.2 billion after a recent funding round, is focusing on growth, relaunching draft-style fantasy games in New York and expanding its sportsbook in states like North Carolina.
The settlement frees up resources to innovate, with initiatives like its partnership with Bill Belichick for NFL content. You can expect Underdog to push for more media and gaming products, but it will need to navigate ongoing regulatory challenges, like class action lawsuits in New York and Massachusetts over its pick’em contests.
This case shows that while legal hurdles persist, strategic settlements can keep companies like Underdog in the game.
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