- The Massachusetts Gaming Commission held an adjudicatory hearing for comments made by ESPN College Game Day Host Rece Davis
- Last year, Davis made a comment during an ESPN BET segment about a pick being “risk-free investing” and not gambling
- Regulators took issue with the comment, and his subsequent comments on the Pat McAfee Show, and investigated the incident
The Massachusetts Gaming Commission held an adjudicatory hearing today for 2024 comments made by ESPN College Game Day Host Rece Davis about a sports betting pick being “risk-free investing” and not gambling.
The Investigations and Enforcement Bureau (IEB) presented the findings of its investigation into Davis’s comments during an ESPN BET segment on the March 24, 2024, episode of College Game Day, and further comments he made on the incident the next day when appearing on the Pat McAfee Show.
The IEB noted Davis’s comments violated Massachusetts sports betting statutes regarding compliance and the ESPN BET content guidance policy regarding a prohibition on the terms “free,” “risk free,” and “can’t lose” when discussing sports bets.
Not an Apology, But a Clarification
The incident in question took place during a College Game Day segment in which 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. Davis finished the segment by describing the under and her prediction as “risk-free investment.” Here are his full comments:
“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.”
According to Chris Soriano, VP and Chief Compliance Officer of PENN Entertainment, an ESPN producer addressed the issue with Davis immediately after the segment, pointing to ESPN BET’s content policy and its prohibitions against the term “risk-free.”
PENN Entertainment then self-reported the incident to the Massachusetts Gaming Commission soon after, Soriano said.
On the same day, Davis took to his social media platform on X and clarified his remarks, noting that “risk-free” bets and betting investments do not exist.
On March 25, 2024, Davis appeared on the popular Pat McAfee Show on ESPN, making it a point to note that he did not apologize for his comments on social media, but clarified them instead.
“But I didn’t apologize. I clarified. I don’t think anybody thought we were really handing out free money, but maybe it’s a better course of action in the future to go with the old David Letterman and say this is an exhibition, not a competition, so please no wagering,” Davis said on the show.
Massachusetts Gaming Commission Eileen O’Brien expressed her disappointment with his comments and criticized the defense Davis made that any reasonable person would have understood he was joking during the College Game Day segment.
“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,” she said.
It was a similar defense the MGC heard during a 2023 adjudicatory hearing regarding a popular betting promo from Barstool Sports personality Dan “Big Cat” Katz. Named the “Can’t Lose Parlay,” the promo began in 2019 and typically featured boosted parlays of three-to-four legs promoted by the popular sports media personality on social media and the Barstool Sportsbook app.
The MGC became aware of the offering in March 2023 and required Barstool Sportsbook discontinue the promo. Barstool legal counsel argued that “no-reasonable person” could see such a long-shot parlay and believe they were participating in a “no-risk bet.” The title of the promo played on the fact that Katz is not a successful gambler, counsel argued.
Despite the argument that the promo was satire and most Barstool bettors were in on the joke, Commissioner Brad Hill said at the time that it was the regulatory body’s duty to protect the 10% of the population who may not know the historic background of the promotion and who may just bet on the parlay because they see Katz doing so.
Violating ESPN BET’s Content Guidelines
Zachary Mercer, legal counsel for IEB, said Davis’s comments were also in violation of ESPN BET’s own content guidelines regarding sports betting content. The guidelines describe the following prohibitions:
- Avoid using “free” or “risk free” as this is generally prohibited terminology, as is the term “can’t lose.”
- Content must not guarantee success or discuss sports wagering as means of personal or financial success
- Content must not imply greater chance of winning compared with other sports wagering operators
Soriano did not disagree with the facts put forward by Mercer or the IEB’s investigation. PENN Entertainment and ESPN are partners in monitoring for compliance, he said, and the shared commitment to regulatory compliance led to the prompt action and reporting of the incident to the MGC.
Commissioner Paul Brodeuer praised both ESPN and PENN Entertainment for their quick reaction to the “off the cuff comment.”
“It was an ESPN producer who flagged it immediately, talked to him (Davis) after. I think that was an excellent outcome and the best you can do in the circumstances of an unplanned comment,” he said.
MGC Chair Jordan Maynard also applauded Soriano and PENN for their “swift action on that day and the day after, and your swift reporting to us.”
The MGC will take action at a later date, which could result in a fine, or the worse case scenario of PENN Entertainment losing its sports betting license in the commonwealth. Based on previous action taken by the MGC, a fine for PENN is the likeliest outcome.
Recently, Massachusetts regulators have responded to comments made by ESPN College Game Day host, Kirk Herbstreit, regarding the concept of ‘risk-free’ sports betting. Herbstreit’s comments sparked controversy and raised concerns among regulators about the potential impact of such statements on the public perception of sports betting.
In a recent segment on ESPN College Game Day, Herbstreit discussed the growing popularity of sports betting and suggested that it could be a “risk-free” way for fans to engage with their favorite teams. He went on to say that sports betting could provide a new level of excitement and engagement for fans, while also potentially generating revenue for sports leagues and teams.
However, Massachusetts regulators were quick to respond to Herbstreit’s comments, emphasizing the importance of responsible gambling practices and the potential risks associated with sports betting. They pointed out that while sports betting can be a fun and entertaining activity, it is not without its risks, and individuals should always gamble responsibly.
Regulators also highlighted the need for transparency and consumer protection in the sports betting industry, particularly in light of the recent legalization of sports betting in Massachusetts. They stressed the importance of ensuring that operators adhere to strict regulations and guidelines to protect consumers from potential harm.
Overall, Massachusetts regulators are taking a proactive approach to addressing the potential impact of Herbstreit’s comments on the public perception of sports betting. They are committed to promoting responsible gambling practices and ensuring that consumers are informed about the risks associated with sports betting. By doing so, they hope to create a safe and enjoyable environment for sports fans to engage with their favorite teams while also protecting them from potential harm.