As the world of sports betting continues to evolve, Penn Entertainment is preparing for a significant shift. The company's transition from Barstool Sportsbook to ESPN BET is on the horizon. However, the Massachusetts Gaming Commission (MGC) is calling for more information before giving its stamp of approval to the rebranding.
The Regulatory Perspective
In a recent MGC meeting, the commissioners deliberated over what advice they could offer Penn regarding the regulatory approach to this switch. The conversation soon led to the consensus that more data was needed before moving forward.
"This process seems to me to be a little bit backwards," expressed Commissioner Nakisha Skinner. "We’ve spoken about it in very general terms. There’s much media attention to this deal. Everything I know about what is proposing to happen here has not really come from Penn Entertainment. That’s, I think, a disadvantage for us as a commission because we really don’t know where to start."
A Concern Over Promotion
The discussion gave voice to a question many in the industry have been asking: how will ESPN's on-air personalities promote the sportsbook? ESPN’s College Game Day has been a particular point of concern. Its predecessor, The Barstool College Football Show, had specific requirements such as age-gating its audience since betting content was incorporated into the show.
ESPN College Game Day, which similarly travels around the country to college campuses, might integrate ESPN BET and impose similar restrictions. Commissioner Jordan Maynard stated his intention to maintain the same standards with Penn’s new partner, saying, "I will hold ESPN to the same standard I held Barstool during the application process."
Ownership vs Marketing Partnership
However, Chairwoman Cathy Judd-Stein brought up a crucial distinction during the meeting. Unlike Barstool, which was owned by Penn, ESPN BET is merely a marketing partner. ESPN had already registered in the state prior to the partnership, anticipating its potential role as a marketing affiliate to an operator.
Depending on the decisions made by Penn and ESPN BET, this might not be a regulatory issue at all. After all, many operators use on-air integrations across various networks.
What's Next?
Penn Entertainment is expected to provide additional information to the MGC as early as next week. The group should then convene for a discussion in early November. As the sports betting landscape continues to evolve, all eyes will be on how this transition unfolds and what it could mean for the future of the industry.