The Massachusetts Gaming Commission (MGC) addressed two incidents of non-compliance by FanDuel and ESPN BET in an open meeting Thursday.
The Massachusetts sports betting market is known throughout the industry for its high tax rates and rigid regulatory framework. The state’s top gaming regulator places a noticeable level of scrutiny on any matter related to sports betting in Massachusetts, and even some cases that many would consider to be trivial. Just look no further than the MGC’s extensive discussion about whether or not to approve wagering on the Super Bowl’s coin toss, where a lengthy debate ultimately led to a “no” vote.
Most reporters listening in on the call Thursday expected another extended, and perhaps heated debate about how to proceed with reprimands for infractions by the two sportsbook operators. However, the four-person commission seemed to make its mind up swiftly, unanimously voting for both cases to be sent to the Investigation and Enforcement Bureau (IEB) for additional review.
Rece Davis, WYD?
ESPN BET and its operator PENN Interactive will have an adjudicatory hearing for its particular incident.
In March, ESPN’s Rece Davis raised a ton of eyebrows with the following statement on a “best bets” segment of "College Gameday":
"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
Suggesting a bet is a “risk-free investment” is a major no-no in any state with legal sports betting, but it’s especially concerning when the person saying that is a major figure on a network that claims to be “the worldwide leader in sports” and that also happens to have its own branded sportsbook.
The commission voted to have the IEB conduct a formal investigation of this incident ahead of an adjudicatory review in front of the commission at a yet-to-determined date in the future.
One commissioner is particularly concerned about whether or not this is just a one-off slip of the tongue, or if this actually represents a larger issue of blurring the lines between ESPN’s media commentary and the wagering integration plastered all over its network via ESPN BET.
“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,” said commissioner Eileen O’Brien.
Minor details
PENN actually had two agenda items to its name in regards to previous compliance violations. The second did not spark as much significant discourse as the Rece Davis comment though.
PENN self-reported in Dec. 15, 2023 that an internal audit discovered that wagering on 27 college basketball games involving teams that were from leagues not approved by the MGC took place between Nov. 6 and Nov. 9, 2023. About 250 bets were cast on these improper markets totaling $12,000.
The commission also addressed Massachusetts sports betting violations by FanDuel where the operator allowed three wagers on Boston College’s participation in the NCAA men’s basketball tournament between March 12 and March 13, for a whopping total of $11.
The commissioners unanimously agreed to send each incident to the IEB for further review and potential action.
A significant fine may be on the way for a violation that resulted from $11 of improper wagers.
