DraftKings Reaches Agreement with NFL Gamers Association Regarding NFT Player Image Controversy

The U.S.-based sports betting platform DraftKings has come to an agreement with the National Football League Players Association (NFLPA) regarding claims of unpaid royalties for the use of NFL player likenesses in non-fungible tokens (NFTs).

In a joint communication submitted on January 27, DraftKings and the NFLPA informed New York federal Judge Analisa Torres that they had mediated the conflict and reached a preliminary settlement.

The parties requested a 60-day stay of the lawsuit, allowing them until March 28 to finalize the agreement.

Settlement Awaits Judge Torres’ Approval

Specific details of the settlement remain confidential, pending Judge Torres’ endorsement.

The legal dispute originated from DraftKings’ 2021 collaboration with the NFLPA to develop tradable NFTs for a fantasy sports game known as Reignmakers.

The relationship deteriorated after DraftKings halted payments to the NFLPA in 2023, referencing a federal court decision that classified the NFTs as securities under the Securities Act and the Exchange Act.

Following this ruling, DraftKings closed its NFT marketplace in July 2023.

The NFLPA initiated a lawsuit in August, reportedly seeking damages of up to $65 million, although the exact amount was redacted.

The association also accused DraftKings of threatening to completely discontinue the NFT offerings. Despite the existing tensions, both parties agreed to revise their contract before arriving at the settlement.

The timing of the proposed settlement is significant, occurring just weeks prior to the NFL’s Super Bowl on February 9 in New Orleans, Louisiana.

The NFL Players Association (NFLPA) recently resolved their lawsuit against DraftKings regarding compensation for player-related NFTs. This follows DraftKings’ decision to shut down their NFT marketplace in July. 1

— Holden Harris (@holdenwithcare) January 28, 2025

Once a hub for crypto advertising, the Super Bowl has since redirected its focus, with no crypto-related advertisements appearing last year after the collapse of FTX in late 2022.

NFT Sales Surge Past $8.8 Billion in 2024

NFTs concluded 2024 with annual sales totaling $8.83 billion, according to CryptoSlam data.

This figure indicates a 1.1% increase from 2023’s $8.7 billion, suggesting a slight recovery for the digital collectibles sector.

Ethereum and Bitcoin led NFT sales in 2024, each generating $3.1 billion, while Solana followed with $1.4 billion in annual sales.

In terms of all-time totals, Ethereum retained its lead with $44.9 billion in sales, followed by Solana at $6.1 billion and Bitcoin-based NFTs at $4.9 billion.

Although 2024 exhibited growth compared to 2023, the market remains significantly below its peak years. NFTs achieved $15.7 billion in sales in 2021 and a record $23.7 billion in 2022.

The total for 2024 represents a decline of 43.9% and 62.8%, respectively, from those peaks.

The market began to recover late in 2024, following a seven-month downturn that reached its lowest point in September with the least sales since 2021.

Sales in October rebounded by 18%, reaching $353 million, and November recorded a six-month high of $562 million. December concluded the year with $877 million in sales, marking the fifth-highest monthly total of 2024.

Ethereum-based collections drove December’s resurgence, accounting for $482 million of the month’s sales.

Bitcoin-based NFTs contributed $172 million, while Solana collections added $100 million.

Top-performing collections in December included Pudgy Penguins, which led with $115 million in sales.

Other notable collections such as Azuki, LilPudgys, CryptoPunks, Doodles, and Bored Ape Yacht Club collectively generated $141 million, reinforcing the steady recovery of the NFT market.

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