Massachusetts Fines PENN $15,000 for ESPN Host’s ‘Risk-Free Investment’ Comment

The fine relates to Davis’s comments during a “best bets” segment for ESPN Bet on College GameDay. The incident centers on a discussion where analyst Erin Dolan proposed a bet (the under in an NCAA game).

The Violation: Misleading Language

The violation occurred when Rece Davis commented on the proposed wager, stating: “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.”

The MGC determined that this language directly violated Massachusetts sports wagering statutes. These rules specifically mandate that licensed operators “cannot promote irresponsible or excessive participation, and advertising cannot mislead as to the risk by suggesting that sports wagering is risk-free.” Furthermore, the comments breached ESPN Bet’s internal Content Guidance, which strictly prohibits using terms like “free,” “risk-free,” and “can’t lose” in betting discussions.

The MGC noted that Davis and the ESPN college basketball production team had previously attended a presentation detailing best practices and compliance guidelines for sports betting content.

Commission Criticizes PENN’s Response

The MGC’s decision addressed not only Davis’s initial comments but also the response from both the host and Penn Sports Interactive.

The day after the incident, Davis appeared on The Pat McAfee Show to clarify his remarks. He stressed that the comment was “tongue-in-cheek” and confirmed he had issued a clarification, but “I didn’t apologize.” He also referenced the fact that the disputed bet ultimately “won.” The Commission deemed this last comment misleading, arguing that the outcome of the wager should be “irrelevant in this circumstance” as the core issue was the misleading language used before the result.

While Penn Sports Interactive self-reported the violation, the MGC expressed “particular concern” over the subsequent lack of a prompt and clear public correction from ESPN Bet. The Commission stated that there was “no meaningful follow-up” beyond internal discussions. Moving forward, the MGC expects future incidents to be met with a “definitive public statement” affirming that “risk-free” language is prohibited.

This fine marks the second time PENN has been penalized in Massachusetts for misleading advertising. In 2023, the MGC fined the company $25,000 for a deceptive “Can’t Lose Parlay” advertisement from the now-defunct Barstool Sportsbook.