TLDR
- The NCAA filed a federal lawsuit against DraftKings for using “March Madness” and other registered trademarks without permission on its sports betting app.
- The NCAA is seeking a temporary restraining order before the Sweet 16 games begin next week, plus triple damages or triple profits.
- DraftKings responded by claiming its use of “March Madness” is protected under fair use and the First Amendment.
- The NCAA has refused partnerships with sportsbooks, unlike the NBA, NFL, NHL, and MLB, and wants states to ban certain college game wagers.
- Other sportsbooks like BetMGM were also using the term, while FanDuel quietly changed its label from “March Madness” to “NCAAB.”
The NCAA filed a lawsuit in federal court on Friday against DraftKings, accusing the sportsbook of using “March Madness” and other registered trademarks without permission on its betting app.
The complaint was filed in the U.S. District Court for the Southern District of Indiana. It came on just the second day of the NCAA Men’s Basketball Tournament.
The 37-page filing claims DraftKings removed only some references to the protected terms when the NCAA first asked. The NCAA says continued use causes “irreparable harm” to its reputation.
The governing body is now seeking a temporary restraining order. It wants the order in place before the Sweet 16 games tip off next Thursday.
The NCAA is also asking for financial compensation. That includes attorneys’ fees and either triple the damages suffered or three times the profits DraftKings made from the alleged misuse.
DraftKings Defends Its Position With Fair Use Claim
DraftKings pushed back on the lawsuit in a statement issued Saturday morning. The company said its use of “March Madness” falls within fair use standards.
A DraftKings spokesperson said the term is used in plain text to identify the tournament, not as a trademark. The company compared it to how other tournament names like the NIT are displayed on the app.
DraftKings also called the usage protected speech under the First Amendment. The company said it is confident the courts will deny the NCAA’s request for an injunction.
As of Saturday morning, DraftKings still had “March Madness” listed as a menu option on its app’s home page. It was not the only operator using the term.
BetMGM also had the NCAA trademark on its platform. FanDuel had used “March Madness” on Friday but changed the label to “NCAAB” by Saturday.
The NCAA has long worked to keep its brand separate from the gambling industry. It joined the four major U.S. professional sports leagues more than a decade ago to fight New Jersey’s efforts to legalize sports betting.
NCAA Stands Alone Among Major Sports Organizations
The Supreme Court eventually ruled in New Jersey’s favor. Since then, 40 states have moved to offer legal sports betting.
The NBA, NFL, NHL, and MLB all shifted their positions after the ruling. Each league has entered into partnerships with DraftKings and other licensed sportsbook operators.
The NCAA has not followed that path. It has refused to partner with any sportsbook.
Instead, the association has called on states to ban certain types of bets on college games. That includes player-specific prop bets, which the NCAA sees as a threat to athlete safety.
The NCAA did extend its partnership with Genius Sports last April. That deal makes Genius Sports the exclusive postseason data provider to sportsbooks through 2032.
The Genius Sports agreement covers both the men’s and women’s basketball tournaments. It also includes the use of NCAA marks and logos.
The annual tournament is one of the biggest betting events in the country. The American Gaming Association estimated that Americans would wager more than $3 billion on this year’s tournaments through legal sportsbooks.
The NCAA’s complaint pointed to DraftKings’ “March Mania” survivor contest as one example of a “confusingly similar variation” of its protected marks. March Mania and March Madness share the same first word, and the two terms have similar definitions.
A message sent to an NCAA spokesperson was not immediately returned as of Saturday.
