A regulatory violation may have occurred when an ESPN host casually uttered the words “risk-free investment” regarding a sports betting proposition, and the Massachusetts Gaming Commission is investigating.
Blurred Lines
The average sports bettor is likely unaware that ESPN does not own ESPN BET but has merely agreed to license its name and promote the brand on its platform in exchange for $1.5 billion over 10 years plus $500 million in warrants to purchase approximately 31.8 million PENN common shares. Penn Entertainment is the gaming brand that owns those rights but the lines between ESPN hosts and the company that simply leases its name can often become blurred.
Such an occurrence took place back in March when ESPN host, Rece Davis, was bantering back and forth with ESPN BET analyst Erin Dolan. The segment revolved around best bets and Davis became enthralled with Dolan’s betting recommendations to the point where he said during the segment, “Some would call this wagering, gambling. I think the way you’ve sold this; I think what it is, is a risk-free investment.”
“You know what? Some would call this wagering, gambling; the way you’ve sold this, I think what it is, is a risk-free investment,” said ESPN’s Rece Davis after an ESPN Bet segment with Erin Dolan. pic.twitter.com/257daMIBON
— Awful Announcing (@awfulannouncing) March 24, 2024
It didn’t take long for the corporate bigwigs to alert Davis of his inadvertent faux pas which caused him to write a two-part post on X, saying:
partake, do so with prudence, care, caution, fiscal and personal responsibility and never over-extend. Sports are unpredictable. Wagering is tricky. So let’s agree to manage monetary risks appropriately. I’m sure most recognized my comment was tongue-in-cheek. Just to clarify
— Rece Davis (@ReceDavis) March 24, 2024
Cross-Pollination
Despite the fact that Dolan and Davis are both employees of ESPN and not ESPN BET, that distinction did not deter the Massachusetts Gaming Commission’s Investigation and Enforcement Bureau (IEB) from exploring the matter at a meeting last week, ultimately determining the use of the term “risk-free” when referring to a betting proposition was in violation of the following statute.
No advertising, marketing, branding, and other promotional materials published, aired, displayed, disseminated, or distributed by or on behalf of any Sports Wagering Operator shall:
(a) Promote irresponsible or excessive participation in Sports Wagering;
(b) Suggest that social, financial, or personal success is guaranteed by engaging in event wagering;
(c) Imply or promote Sports Wagering as free of risk in general or in connection with a particular promotion or Sports Wagering offer;
(d) Describe Sports Wagering as “free”, “cost free” or “free of risk” if the player needs to incur any loss or risk their own money to use or withdraw winnings from the Wager;
MGC Commissioner Eileen O’Brien has been asking for greater clarity and transparency between the two entities and the “cross-pollination” that can often exist between ESPN promoting a gaming brand, ESPN BET, whose parent company, Penn Entertainment, has paid handsomely for the rights to the sports media giant’s visibility and exposure.
“It’s an area that I, as a commissioner, am concerned about, this cross-pollination between ESPN commentators, the lines and the betting, and the commentary that they make. I would like us to do a deep dive,” said Commissioner Eileen O’Brien.
The MGC voted unanimously to hold a hearing on the purported violation but a date has not yet been set.
