The Major League Baseball Players Association (MLBPA) has settled its lawsuit against sports betting giant FanDuel, resolving claims that the company improperly used the names, images, and likenesses of hundreds of MLB players without authorization.

In a filing in New York federal court on Friday, the union announced it had agreed to dismiss the case with prejudice, meaning the claims cannot be refiled. FanDuel also confirmed the settlement and disclosed that the parties had entered into a confidential licensing agreement.

Spokespeople and attorneys for the MLBPA did not immediately respond to requests for comment.

The lawsuit, filed in September, accused FanDuel of “flagrantly” violating the rights of nearly all active MLB players by using their names and likenesses on its betting platform without securing proper licensing agreements.

“For professional athletes, the ability to control the commercial use of their names, images, and likenesses is a crucial return on their substantial career investment,” the MLBPA said in the complaint.

FanDuel had not formally responded to the allegations in court before the settlement.

The case is part of a growing wave of legal actions by professional athletes and their unions against sports betting companies and other businesses accused of profiting from unauthorized uses of player identities.

The National Football League Players Association (NFLPA) filed a similar lawsuit in August against DraftKings, accusing the company of misusing NFL player likenesses in connection with non-fungible tokens (NFTs). That case remains ongoing.

The settlement with FanDuel marks a win for MLB players in securing control over their likenesses, a valuable asset in an era where sports betting and digital platforms continue to grow in prominence. It also signals the players' union's willingness to protect player rights in commercial and digital spaces aggressively.

In its statement, FanDuel acknowledged the resolution and expressed its commitment to working collaboratively with the MLBPA. “We are pleased to have reached an agreement that respects the rights of the players and allows us to continue providing innovative and engaging content for our users,” a spokesperson said.

The confidential terms of the licensing deal are expected to grant FanDuel the necessary permissions to feature MLB players in its offerings moving forward, likely including fantasy sports and betting content.