Massachusetts regulators give go-ahead to ESPN Bet’s Nov. 14 launch but raise some concerns

ESPN Bet has received the go-ahead to launch in Massachusetts on November 14th. However, state regulators noted that they will require more information about how personalities on the ESPN network are allowed to discuss wagering with their audience.

The Massachusetts Gaming Commission (MGC) on Tuesday, at a public meeting, reviewed the 10-year, $2-billion marketing deal between casino and sportsbook operator PENN Entertainment and sports-media giant ESPN. The online sportsbook by the sports broadcasting giant is set to make its debut on November 14th, aiming to cover 17 states across the US in its launch, including Massachusetts. 

The MGC, however, wanted to consider whether additional license conditions were needed in the state. PENN was licensed for online sports betting in Massachusetts under the Barstool Sportsbook name, but it is now rebranding its wagering business and has sold the Barstool brand back to its founder, Dave Portnoy. 

The MGC commissioners did not apply any new restrictions to PENN’s online sports betting license. Instead, the regulators asked for and received guarantees that they would get the final set of guidelines ESPN is preparing for its employees and on-air talent to ensure their journalistic integrity remains intact as they may report information people are using for wagers on ESPN Bet. 

Chris Rogers, PENN’s Chief Strategy Officer, said that the policy for newsbreakers or journalists is expected to be finalized by this week. He additionally provided the commission with a list of restrictions that both PENN and ESPN will abide by during their partnership. The MGC expects PENN to provide the final guidelines before the commission's December 14th meeting.

Rogers confirmed that PENN employees will not be able to place bets “at any facility, or through any mobile application or digital platform owned and operated by their employer.” However, he explained that because ESPN is not an operator, “its employees’ employer does not own or operate any platform and therefore ESPN employees are not prohibited from wagering”.

“There will be no connection between ESPN insiders, reporters, or the newsdesk with anyone who handles risk or trading for PENN,” Rogers told the commission. “ESPN will continue to report on news as it always has, while PENN will separately and independently manage the sportsbook. PENN will not have access to ESPN’s news-production software.”

He further noted: “We believe we have complied with all Massachusetts gaming laws and regulations to similarly allow the rebranding to occur in the commonwealth on the 14th, pending Wednesday's review of our house rules.” 

PENN will be the entity responsible for running the sportsbook while ESPN will be a marketing partner, integrating ESPN BET odds into ESPN programming and involving the sportsbook in its editorial offerings.

The advertising for ESPN BET is supposed to include "appropriate" responsible gaming messaging, and cannot target individuals under the age of 21. It must not "glorify" reckless wagering, among other things. Terms such as "risk-free" or "can't lose" will not be used either.

Additionally, there are specific policies for the promotion of ESPN BET on college campuses. "College GameDay" announcers will not be touting the sportsbook to their in-person audience, ESPN BET signage will not appear behind those personalities, and any promotion of the brand will not be visible to the people in the crowd. 

The Massachusetts approval is an important one for ESPN Bet, as the MGC is one of the stricter regulators in the US. The MGC will meet again today, Wednesday to approve an update to PENN's house rules.