DraftKings, a U.S. sports betting platform, has reached a settlement with the National Football League Players Association (NFLPA). The lawsuit accused DraftKings of not paying for using NFL players’ likenesses in non-fungible tokens (NFTs).
NFLPA and DraftKings reached on a settlement in NFT lawsuit. Source: CourtListenerIn a joint letter submitted to New York federal Judge Analisa Torres on Jan.27, both parties announced they had mediated the case and agreed to settle. They requested a 60-day delay, giving them until March 28 to finalize the agreement. The settlement’s details were not disclosed.
What’s the Matter?
DraftKings partnered with the NFLPA in 2021 to create collectible NFTs featuring NFL players. These NFTs were part of a fantasy sports game called Reignmakers, where users could trade player NFTs.
However, DraftKings shut down its NFT marketplace in July 2023. The company also stopped paying the NFLPA, arguing it had the right to terminate the contract. This decision followed a federal court ruling that classified the NFTs as securities under the Securities Act and Exchange Act.
The NFLPA filed a lawsuit in August 2023, reportedly seeking $65 million in damages. The final damages amount requested was redacted in court documents. The union also claimed that DraftKings threatened to stop offering the NFTs in 2023, but the two parties later renegotiated the contract.
DraftKings NFT Case Settlement Ahead of Super Bowl
The settlement comes just weeks before the NFL’s Super Bowl on Feb. 9 in New Orleans. In previous years, the Super Bowl featured ads from cryptocurrency companies like Coinbase, Crypto.com, and FTX. However, no crypto-related ads appeared during last year’s event after FTX’s collapse in November 2022.
In September 2024, Major League Baseball Players, Inc. (MLBPI) — the licensing arm of the MLB Players Union — also filed a lawsuit against DraftKings and bet365 in the U.S. District Court for the Eastern District of Pennsylvania. MLBPI accused the platforms of violating players’ publicity rights by using their names, images, and likenesses without consent.
The NFT Market Today
NFT sales grew by 2.3% in 2024, reaching $8.9 billion. As of today, the global NFT market cap is valued at $6.3 billion, reflecting a 0.5% increase in the last 24 hours. This is still much lower than the record $23.7 billion in NFT sales seen in 2022. Additionally, the total trading volume in the NFT space over the past day was $22.1 million, representing a 33.3% spike.
Judge Torres, who oversees other notable crypto cases like the SEC’s lawsuit against Ripple, must approve the final settlement agreement between DraftKings and the NFLPA.
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