Massachusetts has praised Penn Entertainment and ESPN for dealing quickly with “risk-free” sports betting comments by host Rece Davis. [Image: Shutterstock.com]

MGA, Penn reach understanding

The Massachusetts Gaming Commission and Penn Entertainment have reached an accord over controversial comments made by ESPN “College Game Day” host Rece Davis. 

not gambling but “risk-free investing”

On Thursday, the Massachusetts Investigations and Enforcement Bureau (IEB) presented its findings to an MGC adjudicatory hearing over Davis’s 2024 comment on an ESPN Bet segment that a suggested sports betting pick was not gambling but “risk-free investing.”

The IEB told the MGC panel Davis’s comments violated state sports betting compliance and ESPN Bet content guidance policy, which bans terms such as “free,” “risk free,” and “can’t lose” where sports bets are concerned.

Penn signed a ten-year, $2bn ESPN Bet deal with Disney in 2023 and, as such, shares the betting platform’s responsibility for regulatory compliance. 

At the hearing, a Penn lawyer didn’t dispute the IEB’s findings, focusing instead on the partnered firms’ quick actions over Davis’s comments. Rather than making Penn sweat, the MGC accepted its efforts to rectify Davis’s controversial comments. 

Relationship rescued

Penn Entertainment’s Vice President and Chief Compliance Officer Chris Soriano was in the MGC hot seat on Thursday. He made the case that his firm and ESPN Bet’s shared commitment to regulatory compliance “led to the prompt action and reporting of the incident” to the state regulatory body.

At the hearing, MGC Commissioner Paul Brodeuer praised the partner firms for their speedy reaction to dealing with Davis’s “off-the-cuff comment.”

Davis made the comment on the back of ESPN Bet’s Erin Dolan’s pick for an NCAA matchup. Davis responded with: “Some would call this wagering, gambling, I think the way you sold this…I think what it is, is risk-free investment.”

Commissioner Brodeuer acknowledged that an ESPN producer caught Davis’s incendiary statement immediately and confronted the host straightaway. 

best you can do in the circumstances of an unplanned comment”

“I think that was an excellent outcome and the best you can do in the circumstances of an unplanned comment,” Brodeuer said.

MGC Chair Jordan Maynard also praised Penn and Soriano for their “swift action on that day and the day after, and your swift reporting to us.”

What next?

According to reports, the “MGC will take action at a later date, which could result in a fine.” 

The worst-case scenario would be Penn losing its Massachusetts sports betting license, which appears highly unlikely given the MGC’s approval of how the involved brands cleaned up their mess. 

According to the New York Times last week, Davis has agreed to a new seven-year ESPN deal for “tens of millions of dollars.” This will guarantee that Davis will lead ESPN’s hosting duties through the rest of the network’s College Football Playoff deal set to run until 2031-32.