Daily fantasy sports firms win dispute with college football players

Daily fantasy sports market leaders DraftKings and FanDuel have reason to celebrate this weekend after securing the dismissal of a $5 million class action in an Indiana federal court Friday.

The litigation was filed by three former Northern Illinois University football players who claimed that their names and likenesses were unlawfully used by the DFS companies in their (since discontinued) college football fantasy contests.

Judge Tanya Pratt dismissed the case on grounds that the DFS companies did not violate the law by using the players’ images. She pointed to “statutory exceptions” to Indiana code which remove defendants conduct from coverage under Indiana’s right of publicity statute.

However, the court did not agree with a second defence argument by the DFS firms which invoked First Amendment rights to protection under free speech principles, finding that this was not a valid argument at the stage of considering a motion to dismiss.

The plaintiffs have the option of an appeal against the Indiana court’s decision, but have not thus far indicated an intention to take this course.