Leading sports betting platform DraftKings has settled a dispute involving the usage of NFL player likenesses in non-fungible tokens (NFTs) with the National Football League Players Association (NFLPA). The conflict started when DraftKings reportedly neglected their payment responsibilities connected to their Reignmakers NFT project.
Both sides affirmed in a single statement turned in to a New York federal court on January 27 that they had agreed upon a “settlement in principle.” The final agreement is still under development and needs Judge Analisa Torres’s approval before it becomes operative. The particular details of the settlement are yet unknown.
DraftKings and the NFLPA signed a 2021 deal allowing the platform to highlight NFL players in its Reignmakers fantasy sports games via NFTs, thereby sparking the issue. In July 2023, DraftKings closed its NFT marketplace and ceased to pay the NFLPA. However, following a federal court decision that determined the digital collectibles might be considered securities, the issue arose. DraftKings claimed that the court decision gave reasons to call off the contract.
The settlement falls just one week before the Super Bowl, scheduled for February 9 in New Orleans. Unlike past years, the event is expected to include little to no crypto-related advertising following the fall of FTX, which has long been a main sponsor of such ads.
NFT sales, meanwhile, have grown modestly 2.3% year over year to reach $8.9 billion in 2024. Still, this amount is much less than the $23.7 billion high recorded in 2022.
