The NCAA, the governing body for college athletics, has initiated legal action against DraftKings as the Men’s Basketball Tournament progresses. The lawsuit, filed in federal court on Friday, accuses the Boston-based sports betting company of using NCAA trademarks, including those related to March Madness, without authorization.
In a detailed 37-page complaint submitted to the U.S. District Court for the Southern District of Indiana, the NCAA claims that DraftKings only partially complied when asked to remove certain trademark references. The organization argues that each day DraftKings continues its unauthorized use of NCAA Basketball Marks not only undermines its long-standing anti-gambling position but also damages public trust and harms the NCAA's reputation.
The NCAA is seeking a temporary restraining order against DraftKings, which it hopes will be in effect before the Sweet 16 round of the tournament, set to begin next Thursday for men's games and the following day for women's games. Additionally, the NCAA is pursuing financial compensation, which could include attorney fees and either triple the damages incurred or three times the profits gained by DraftKings.
This annual tournament, known for its thrilling upsets and dramatic conclusions, draws millions of viewers and is one of the largest sports betting events in the United States. The American Gaming Association has estimated that Americans will wager over $3 billion on this year's tournament through legal sportsbooks.
Besides the unauthorized trademark usage, the NCAA has also pointed out that DraftKings has employed “confusingly similar variations” of its protected intellectual property, such as the “March Mania” survivor contest, which shares a similar name with March Madness.
Over a decade ago, the NCAA collaborated with major professional sports leagues to prevent New Jersey from legalizing sports betting. However, following a Supreme Court ruling that favored New Jersey, many states have since embraced sports betting, with leagues like the NBA and NFL forming partnerships with betting operators like DraftKings. In contrast, the NCAA has refrained from such partnerships and continues to advocate for restrictions on specific types of wagers related to college games.
The NCAA emphasizes that when consumers associate its trademarks with gambling services, it creates a misleading perception of a connection between the NCAA and the gambling sector, jeopardizing its identity and undermining efforts to maintain a clear separation between collegiate sports and commercial gambling.