Massachusetts regulator greenlights ESPN Bet launch despite questions about relationship

Officials from the Massachusetts Gaming Commission (MGC) have given their assent to allowing ESPN Bet to operate in the Commonwealth as the PENN-powered brand gears up for its November 14 launch.

At a meeting of the MGC on November 7, PENN Entertainment chief strategy officer Chris Rogers, who gave testimony before the commission, was repeatedly questioned over the relationship between the two brands, that inked a 10 year, $1.5bn licensing deal in August.

Central to this subject was the crossover between ESPN Bet and the wider ESPN network, and how ESPN Bet content would be promoted across social media.

The PENN CSO revealed PENN and ESPN have developed guidelines and “comprehensive guardrails” around how sports betting offers would appear within ESPN’s wider customer campaigns, as well as drafting guidelines to ensure its employees maintain their journalistic integrity.

Addressing these concerns, Rogers told the MGC: “The key point there is making sure insiders remain independent from ESPN Bet, so there will be no connection between the ESPN insiders, reporters, or the news desk with anyone who handles risk and trading for PENN.”

He was asked about the potential impact of the relationship between employees and the sportsbook operator, and how that could potentially be used to their advantage unethically.

“I think there’s more of a perception than anything. The sportsbooks are completely separate from media partners. And I feel confident saying that with regards to our competitors,” Rogers responded.

“I think the perception is that, from a consumer standpoint, if you believe that the sportsbook has access to inside information that you do not as a consumer, then that causes a concern from a customer standpoint,” the PENN CSO added.

The relationship between ESPN and on-screen personality Pat McAfee, who has previously served as a champion of FanDuel, was also queried.

“There’s a lot of content around sports betting now in the media and when I think about what ESPN is going to be doing for us, the brand is part of it,” Rogers explained.

“As far as the distinction is concerned, ESPN are currently today giving odds attribution to Caesars Sportsbook. So when they talk about odds, they say, ‘odds brought to you by Caesars.’ They currently do integrations with both Caesars and DraftKings; they’ve worked with other sportsbook partners.

“I think the consumer is able to differentiate the difference between editorial and sportsbook,” he added.

The promotion of ESPN Bet on college campuses via the ESPN College Game Day show was also highlighted by Rogers as another area in which significant controls would be implemented.

Questions concerning college campus advertising stemmed from a prior breach of Massachusetts advertising standards by PENN via its then Barstool Sportsbook.

However, Rogers confirmed ESPN programming on college campuses would be prohibited from any mention of ESPN Bet to attending audiences, with all ESPN Bet advertising during these shows limited to on-air only and not to the live/in-studio audience.

In addition, PENN has revealed that no ESPN Bet signs will feature during live college sports TV coverage, with no promotion of sign-ups or the ESPN brand itself on a college campus.

After a 90-minute debate, the MGC approved ESPN Bet for launch in the Commonwealth, however MGC commissioner Eileen O’Brien summed up the mood of the panel.

“Just as one commissioner, I can say there’s a lot to be excited about in this relationship. And then there’s that part of it that we’re going to have to watch very closely,” O’Brien said.

“I’m concerned about the name being the same and being that level of exclusivity and integration, which again, from a business perspective, I totally understand. But it is an area that I would love to get, when you have it, the more detail on the guardrails. Because to me, that’s critical for this,” she added.