MLBPA partners with Fanatics as first licensed sportsbook amid ongoing legal dispute

MLB Players, Inc., the commercial arm of the Major League Baseball Players Association (MLBPA), has signed a non-exclusive licensing agreement with Fanatics Sportsbook, making Fanatics the first officially licensed sportsbook of MLB Players, Inc., reports Sports Business Journal.

This deal, which grants Fanatics the rights to use MLB players' likenesses for sports betting products and promotions, was announced amid ongoing legal battles with other betting platforms over the unauthorized use of player images.

Although the MLBPA has remained silent on the ongoing lawsuits, the new deal with Fanatics suggests that the union may be open to similar agreements with other operators in the future. In September, the MLBPA filed lawsuits against major sports betting platforms including DraftKings, FanDuel, bet365, and Underdog Fantasy, accusing them of using MLB player images without proper licensing agreements.

The union’s lawsuit argues that these platforms have gained commercial advantages by leveraging player likenesses to promote betting, without any official arrangement in place.

"Defendants are instead using MLB player images on their platforms for their own commercial advantage, as a means of associating their platforms more closely with these MLB players, to promote the use of their platforms and entice users to place bets," the lawsuit alleges.

Fanatics, which was not named in these lawsuits, has now secured a partnership that allows them to feature player rights on their sportsbook platforms. The terms of the deal, brokered with the assistance of OneTeam Partners, which manages group licensing rights for players, have not been disclosed.

This agreement further strengthens Fanatics' ties with Major League Baseball, as the company has long held merchandising rights for several major sports leagues, including MLB.

This partnership comes shortly after Fanatics expanded its footprint in the U.S. sports betting market, most recently securing approval to operate in Washington, D.C., through a deal with the National Women’s Soccer League's Washington Spirit.

As the first sportsbook to obtain an official licensing agreement with MLB Players, Inc., Fanatics is now positioned to benefit from this exclusive arrangement, while other operators face ongoing litigation. Whether this deal sets a precedent for other sports betting companies to negotiate similar agreements remains to be seen.