Penn and MGC Dial Down Dispute Over Davis's Comments
Massachusetts and Penn Entertainment reach agreement following ESPN's Rece Davis's "risk-free" remark controversy.
In a turn of events, the Massachusetts Gaming Commission (MGC) and Penn Entertainment have reached a truce over the contentious remarks made by ESPN "College Game Day" host Rece Davis.
Ditching gambling for "risk-free investing"
Thursday saw the Massachusetts Investigations and Enforcement Bureau (IEB) presenting its findings to an MGC hearing, addressing Davis's 2024 comment on an ESPN Bet segment that a suggested sports betting pick was not gambling but "risk-free investing."
According to the IEB, Davis's statements contravened the state's sports betting compliance, as well as ESPN Bet's content guidance policy, prohibiting terms such as "free," "risk-free," and "can't lose," when discussing sports bets.
Penn, holding a $2 billion, ten-year agreement with Disney, shared responsibility for regulatory compliance with ESPN Bet. At the hearing, a Penn attorney didn't contest the IEB's findings, instead, underscoring the quick measures taken by partners following Davis's comments.
A restored relationship
On the hot seat at the hearing, Penn Entertainment's Vice President and Chief Compliance Officer, Chris Soriano, argued that the shared, unwavering commitment to regulatory compliance, led to a rapid response and reporting of the incident to the state regulatory body.
Commissioner Paul Brodeuer, MGC panel member, commended the partnered firms for their nimbleness in handling Davis’s off-the-cuff comment. The incident was caused in the wake of ESPN Bet's Erin Dolan's pick for an NCAA matchup, to which Davis responded, "Some would call this wagering, gambling, I think the way you sold this...I think what it is, is risk-free investment."
Brodeuer recognized that an ESPN producer promptly picked up on Davis’s inflammatory statement and confronted him immediately.
What's next?
Reports suggest that the "MGC will take action at a later date, which could result in a fine." A severe consequence, such as Penn losing its Massachusetts sports betting license, appears highly improbable, given the MGC's approval of how the involved brands handled the situation.
According to the New York Times last week, Davis has secured a new seven-year ESPN deal worth "tens of millions of dollars." With the College Football Playoff deal slated to run until 2031-32, Davis will continue to lead ESPN's hosting duties.
Although unrelated to the incident, Penn's strategic moves, such as the $200 million Iowa land-based casino project, indicate the company views Massachusetts-related issues as manageable, within its operational risk framework.
- Penn Entertainment's Vice President and Chief Compliance Officer, Chris Soriano, agreed that the shared commitment to regulatory compliance led to a rapid response and reporting of the incident to the Massachusetts Gaming Commission (MGC).
- According to the IEB, Davis's statements contravened the state's sports betting compliance, as well as ESPN Bet's content guidance policy, including terms such as "free," "risk-free," and "can't lose," when discussing sports bets.
- In a turn of events, the Massachusetts Investigations and Enforcement Bureau (IEB) presented its findings to an MGC hearing, addressing Davis's comment on an ESPN Bet segment that a suggested sports betting pick was not gambling but "risk-free investing."
- Thursday saw Penn Entertainment and the MGC reaching a truce over the contentious remarks made by ESPN "College Game Day" host Rece Davis, with the MGC noting the quick measures taken by partners following Davis's comments.
