Judge Denies NCAA Request to Block DraftKings Use of Tournament Terms

A federal judge has denied the NCAA's request to immediately stop DraftKings from using tournament-related trademarks, allowing the sportsbook to continue referencing well-known college basketball terms while the case proceeds.  

The ruling followed a complaint filed in the Southern District of Indiana that sought to restrict DraftKings from using phrases tied to the NCAA's men's and women's basketball tournaments. 

Judge Tanya Walton Pratt determined that the NCAA did not demonstrate that DraftKings' use of terms such as March Madness, Final Four, Elite Eight, and Sweet Sixteen would result in irreparable harm. The decision has not resolved the broader dispute between the trademark parties, as it has left room for the NCAA to pursue further legal action, including preliminary and permanent injunctions. 

The NCAA expressed its dissatisfaction with the decision but expressed confidence in proving its claims in further filings. The NCAA has argued that it needs to ensure its trademark remains distinct from gaming activities and that DraftKings' marketing strategy creates consumer confusion about any form of endorsement. 

DraftKings previously argued that these terms are commonly used by media and fans and are commonly found in the sports world. In its filings, DraftKings claimed that it has used these terms for more than five years and that it is well within legal limits. 

The court's decision allows that practice to continue for now, pending additional discovery and potential further rulings. 

DraftKings and FanDuel expand into Arkansas 

While the legal battle is still ongoing, DraftKings and FanDuel are moving forward with their expansion strategies. They both recently launched their operations in the Arkansas sports betting market after receiving approval from state regulators. 

The Arkansas Racing Commission approved applications from both operators on February 26, following partnership proposals with local casinos. FanDuel partnered with Oaklawn Casino to power its mobile sportsbook, while DraftKings worked with Southland Casino in West Memphis through a similar vendor agreement. 

The agreements have each sportsbook operator receive a percentage of the generated revenue in return for providing the technology and operational support. This model also complies with Arkansas regulations, which require local casinos to participate in mobile sports betting services. 

The move, however, did meet some resistance. Saracen Casino expressed concerns about out-of-state partnerships, citing previous resistance from Oaklawn and Southland.  

There was also a question of whether this partnership would be subject to Arkansas's 51% rule, by which a majority of revenue from these partnerships would remain within the in-state casino. 

The state clarified that it would be keeping a watchful eye on this. Auditors from the Department of Finance and Administration will be placed within the casino operations.