DraftKings was sued by the NFLPA for $65 million for using player images without permission
DraftKings has reached a settlement with the NFL Players Association (NFLPA) after being accused of failing to pay for using NFL player likenesses in non-fungible tokens (NFTs). The two parties informed a New York federal judge on January 27 that they had mediated the dispute and agreed to a settlement in principle, though the details remain undisclosed. They requested a 60-day stay on the case, giving them until March 28 to finalize the agreement, which still requires court approval.
The disagreement began after DraftKings shut down its NFT marketplace in July 2023 and stopped making payments under its contract with the NFLPA. The company argued that it had the right to terminate the agreement following a federal ruling that classified NFTs as potential securities under the Securities Act and Exchange Act.
The NFLPA filed a lawsuit in August, reportedly seeking around $65 million in damages, though the final amount was redacted in court documents.
DraftKings had partnered with the NFLPA in 2021 to create collectible NFTs of NFL players, which could be bought, sold, and used in its fantasy sports game, Reignmakers. Despite the contract dispute, the two sides had previously attempted to restructure their agreement before the NFLPA proceeded with legal action.
The timing of the settlement is notable, as it comes just ahead of the Super Bowl on February 9. The annual event once featured numerous crypto-related advertisements, but the industry’s presence has diminished following the collapse of major exchange FTX in 2022. Meanwhile, NFT sales have shown slight growth, reaching $8.9 billion in 2024, though still far below their 2022 peak of $23.7 billion.

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