- A comment from Rece Davis on College Game Day this weekend raised a few eyebrows in the sports betting industry
- Davis’s joke on Sunday regarding ESPN BET’s promo being “risk-free investing” and not gambling could result in action by state regulators
- Massachusetts regulators held an adjudicatory hearing in 2023 for a similar Barstool Sportsbook promo called a “Can’t Lose Parlay”
Will an ESPN talking head’s joke on College Game Day about gambling being “risk-free investing” result in any official action by state regulators? Precedence has already been set by regulators in various states that may find this comment, albeit a joke, in violation of their responsible gaming rules.
On Sunday, March 24, ESPN College Game Day host Rece Davis described an ESPN BET “best bets” segment, which touted the under for UConn and Northwestern’s second round NCAA matchup, as not gambling but a “risk-free investment.”
Davis later clarified his remarks on social media and described the comment as joke, but the visibility of his language and backlash it received may result in state regulators taking further consideration at an adjudicatory level.
Precedence in Massachusetts For Joking Sports Betting Comments
The comments in question took place during a College Game Day segment in which ESPN BET’s Erin Dolan extolled the under for UConn and Northwestern’s second round NCAA matchup as one of her “best bets” of the day.
After Dolan’s comments, Davis finished the segment by describing the under 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.”
“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
Davis took to his X account later in the day and described his comments as a joke and noted that “such a thing does not exist” in reference to a risk-free bet. Most, he said, likely understood that his comments were “tongue-in-cheek.”
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
— Rece Davis (@ReceDavis) March 24, 2024
ESPN BET declined to offer additional comments on the matter beyond what Davis mentioned on his social media account.
While it may be obvious that his comments were a joke, they were made on a popular ESPN college basketball preshow, and during an ESPN BET segment, and may potentially raise some consideration from state sports betting regulators as to whether or not action needs to be taken against them.
Massachusetts sports betting regulators have already set a precedent on holding hearings for similar sports betting language snafus. In June 2023, the Massachusetts Gaming Commission held an adjudicatory hearing on a popular 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.
An assumption could not be made that every user understood that the promo title was “satirical” and would win every time, MGC members noted.
The MGC has yet to release its ruling on this adjudicatory hearing to the public, but it could result in a fine for Barstool, even though it no longer operates in the state.
Risk-Free Language Has Been Challenged in Various States
The term “risk-free” when discussing sports betting promos or offers has been a point of contention amongst sports betting regulators. A handful of states have banned the use of the phrase “risk-free” in sports betting promos and advertisements and could certainly extend that ban to on-air betting segments.
Massachusetts, Pennsylvania, and Ohio have all banned the use of “risk free” or “free bets” terms when advertising sports betting promotions.
The Ohio Casino Control Commission levied hefty fines in early 2023 against operators who have failed to comply with its ban on “risk-free” language for sports betting and sports betting promos.
The OCCC levied $150,000 fines against DraftKings, Caesars Sportsbook, and BetMGM after the operators advertised promotions or bonuses that used the term “free” or “risk-free” when patrons were required to incur a loss or risk their own money to obtain the promotion.
These fines were imposed for sports betting advertisements, but regulators may decide to uphold these same standards for an ESPN BET sports betting segment on a college basketball pregame show.
Recently, ESPN BET caused quite a stir with their ‘risk-free investment’ joke during a broadcast. The joke, which involved a fictional investment opportunity that was guaranteed to make viewers rich, sparked outrage among viewers and raised questions about the potential regulatory response to such misleading statements.
In the world of finance and investing, it is crucial for companies to be transparent and honest about the risks involved in any investment opportunity. Making false or misleading claims about the potential returns on an investment can have serious consequences, both for the company making the claims and for the investors who may be misled by them.
In the case of ESPN BET’s joke, it is possible that regulatory agencies such as the Securities and Exchange Commission (SEC) could take action against the company for making false or misleading statements about an investment opportunity. The SEC is responsible for enforcing federal securities laws and regulations, and has the authority to investigate and prosecute companies that engage in fraudulent or deceptive practices.
If the SEC were to investigate ESPN BET for their ‘risk-free investment’ joke, they would likely look into whether the company violated any securities laws or regulations by making false or misleading statements about the investment opportunity. If the SEC were to find that ESPN BET did violate securities laws, they could face fines, penalties, and other sanctions.
In addition to potential regulatory action by the SEC, ESPN BET could also face backlash from viewers and investors who were misled by the joke. Trust and credibility are essential in the world of finance, and companies that make false or misleading claims about investment opportunities risk damaging their reputation and losing the trust of their audience.
Ultimately, the potential regulatory response to ESPN BET’s ‘risk-free investment’ joke serves as a reminder of the importance of honesty and transparency in the world of finance. Companies must be careful to avoid making false or misleading statements about investment opportunities, as the consequences of doing so can be severe. Investors should always do their own research and due diligence before making any investment decisions, and be wary of any claims that sound too good to be true.
