The Sesame Workshop lawsuit against SeaWorld’s parent company could end a 45-year partnership and reshape Sesame Street attractions at U.S. theme parks.
Photo Credit: SeaWorld Orlando
A new Sesame Workshop lawsuit could reshape the future of Sesame Street attractions at several major U.S. theme parks. The nonprofit behind Sesame Street has filed a federal lawsuit against United Parks & Resorts, the company that operates the SeaWorld and Busch Gardens chain of parks. The complaint alleges unpaid royalties and contractual violations tied to Sesame-themed attractions across multiple parks. If successful, the lawsuit could end a 45-year partnership that has helped bring beloved characters like Elmo, Big Bird, and Cookie Monster to theme park guests for generations.
Details of the Sesame Workshop lawsuit
Photo by Matt Roseboom
According to reporting from Reuters, Sesame Workshop filed the lawsuit Thursday in federal court in New York seeking to terminate its licensing agreement with United Parks & Resorts and recover unpaid royalties, along with punitive damages.
The organization said ending the relationship was not its preferred outcome.
“While we did not want to end a partnership that has spanned 45 years, we have regrettably determined that the termination of our agreement is the only path forward,” Sesame Workshop said in a statement.
The organization is asking the court to:
Terminate the licensing agreement
Award unpaid royalties
Grant punitive damages
The nonprofit argues the legal action is necessary to protect the Sesame Street brand and the trust families place in it. The companies’ most recent licensing agreement, finalized in 2017, governs the use of Sesame Street characters in theme parks and entertainment experiences operated by United Parks & Resorts.
Reporting indicates the nonprofit believes the operator has failed to meet several obligations outlined in that contract. At the time the lawsuit became public, United Parks & Resorts had not issued a comment.
A 45-Year theme park partnership
Photo courtesy of Busch Gardens Tampa Bay
The relationship between Sesame Workshop and SeaWorld parks dates back to the early days of themed family entertainment partnerships. For decades, Sesame Street characters have appeared across parks operated by United Parks & Resorts, including:
SeaWorld Orlando
SeaWorld San Diego
SeaWorld San Antonio
Busch Gardens Tampa Bay
The partnership also includes entire parks and lands themed around the iconic children’s series, such as:
Sesame Place Philadelphia
Sesame Place San Diego
These attractions feature family rides, character meet-and-greets, parades, and live shows centered on Sesame Street characters. For many families visiting SeaWorld parks, meeting Elmo or taking a ride in a Sesame-themed land has become a core part of the experience.
Allegations of unpaid royalties in the Sesame Workshop lawsuit
At the center of the Sesame Workshop lawsuit are allegations that United Parks & Resorts failed to properly pay royalties required under the licensing agreement. Sesame Workshop claims the company stopped making royalty payments tied to the contract and had previously delayed payments during earlier disputes over the agreement.
One previous legal conflict between the organizations led to arbitration. A federal judge later confirmed the arbitration ruling requiring the park operator to pay more than $11 million in royalties and related costs tied to earlier breaches of the agreement. Although that payment was reportedly made in 2025, Sesame Workshop claims issues surrounding contractual obligations continued, ultimately leading to the new lawsuit.
Sesame Place and operational changes
Photo courtesy of Sesame Place San Diego
The lawsuit also raises concerns about operational decisions involving Sesame-themed attractions. One issue involves operations at Sesame Place San Diego. The park shifted to a more limited seasonal schedule, reportedly with relatively short notice to guests and passholders. Sesame Workshop argues that decisions like this could impact the reputation of the Sesame Street brand and affect the expectations families have when planning visits.
Another allegation in the lawsuit concerns a Sesame-themed area at SeaWorld San Antonio that was closed permanently while payment disputes were ongoing. These operational issues are part of the broader complaint that United Parks & Resorts has not fully upheld the licensing agreement.
What the Sesame Workshop lawsuit could mean for theme parks
Photo courtesy of Busch Gardens Tampa Bay
The outcome of the Sesame Workshop lawsuit could have major implications for theme parks across the United States. If the licensing agreement is terminated, Sesame Workshop could potentially pursue partnerships with other theme park and entertainment companies or develop new experiences outside the current United Parks & Resorts portfolio. For now, however, Sesame Street attractions remain in operation while the legal process moves forward.
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