DraftKings has reached a settlement with the National Football League Players Association (NFLPA) in a lawsuit concerning the termination of their NFT marketplace and unpaid royalties.
The NFLPA filed the lawsuit in August 2024, alleging that DraftKings breached a 2021 contract by shutting down its NFT platform and failing to pay approximately $65 million in guaranteed royalties to players. The contract granted DraftKings the right to use the names, images, and likenesses of NFL players for its NFT marketplace.
There has been no media disclosure of the settlement’s terms. However, both parties have requested a brief pause in court proceedings to finalize the agreement.
This settlement brings an end to a legal battle that has been ongoing for several months. It also highlights the challenges and uncertainties that companies face when entering the rapidly evolving NFT market.
