The Massachusetts Gaming Commission (MGC) held a hearing on Thursday investigating the endorsement of a risk free bet on ESPN last year.
The incident relates to a segment on ESPN College Game Day in March last year. ESPN BET’s Erin Dolan offered the under for UConn and Northwestern’s second-round NCAA matchup as one of her “best bets” of the day.
Host, Rece Davis then commented that this was “risk-free investment” rather than gambling.
He said, “You know what, some would call this wagering, gambling, I think the way you sold this…I think what it is, is risk-free investment. That’s the way to look at it.”
Describing a sports bet as “free,” “risk free,” or “can’t lose” is prohibited under Massachusetts gambling laws and ESPN Bet’s content guidance.
Davis defends his comments
After the broadcast, ESPN producers called Davis out on the comments and reported the incident to the MGC.
Davis attempted to brush off any backlash by taking to social media, posting on X,
“During a segment this morning on @CollegeGameDay,due to @ESPNBet picks hitting yesterday, I joked the advice was more like “risk free investing.” As we all know, such a thing does not exist. Obviously, there are risks. Though I’m not a gambler, I strongly encourage those who do 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”
Users responded in typical fashion with comments such as “Too late brother I already threw my savings on it” and “To late, Rece. Thanks to your encouragement, I am now penniless, jobless, homeless and hairless.”
Risky to say risk free bet
Davis’ defense was that reasonable people would take the comment as a joke rather than an endorsement to put your life savings on the bet.
MGC Commissioner Ellen O’Brien was not impressed by the attempts to say that any reasonable person would see the comment as a joke.
She responded, “We’ve had this conversation before, to define ‘reasonable person.’ My concern is, there’s the reasonable person who is familiar with betting, with sports, and the banter, and there’s the reasonable person outside the industry. I think the standard should be the reasonable person who may not be sophisticated in the industry.”
The MGC outlawed the terms “risk-free bet” and similar promotions that guarantee wins in 2023. Their regulations state it is prohibited to “Imply or promote Sports Wagering as free of risk in general or in connection with a particular promotion or Sports Wagering offer”
An additional rule stipulates that companies may not “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”
The MGC took action against a Barstool Sports promo that advertised a “Can’t Lose Parlay” and forced the company to discontinue the campaign.
Sports betting promotions
Regulated sportsbooks have to toe the line when running promotions. Many other states have attempted to crack down on terminology.
For example, Arizona proposed a bill that prevented companies using the term “free bet” if players had to make deposits to get the offer. DraftKings argued that it was “industry standard to promote free play to accompany a player’s deposit”.
The Sports Betting Alliance (SBA) also argue that over-policing the regulated companies will only serve to drive customers to illegal betting sites. Unregulated sports betting sites, such as sweepstakes or crypto sportsbooks can be more indulgent when giving promotions.
This leads to better offers and promos on alternative betting sites, but state regulators believe they have a duty to protect players.
It’s a fine balancing act for the states that want to protect players but also maximize tax revenue brought in by legal betting.
In this case, the MGC will decide on an appropriate punishment and most likely fine ESPN for the comments.
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