Massachusetts Regulators Fine Penn Sports Interactive $15K for Rece Davis On-Air Comments

• The Massachusetts Gaming Commission has fined Penn Sports Interactive $15,000
• The fine stemmed from ESPN College GameDay host Rece Davis’s on-air comments during a 2024 March ESPN BET “best bets” segment
• Davis made a comment during an ESPN BET segment about a pick being “risk-free investing” and not gambling

The Massachusetts Gaming Commission has fined Penn Sports Interactive $15,000 for ESPN College GameDay host Rece Davis’s on-air comments during a 2024 ESPN BET segment.

On the March 24, 2024, episode of College Game Day, Davis made a comment during an ESPN BET “best bet” segment about a proposed pick being “risk-free investing” and not gambling. Davis then went on the Pat McAfee Show the next day and made further comments on the incident.

During an adjudicatory hearing for Penn Sports Interactive in April, the Investigation and Enforcement Bureau (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.

Unfair, Misleading Advertising Strictly Prohibited

According to the Massachusetts Gaming Commission’s non-compliance decision, licensed sports betting operators “shall not promote irresponsible or excessive participation and advertising must not misrepresent risk by implying sports wagering is risk-free generally or in connection with a promotion, nor label it as ‘free’ if players must risk or lose money to access winning.”

The MGC determined Penn Sports Interactive will be fined $15,000 for Davis’s on-air comments, both during the segment and his subsequent interview with McAfee.

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.”

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.

However, 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.

Davis also made light of the fact that the bet won, which Commissioner Eileen O’Brien took exception with during the commission’s adjudicatory hearing.

Commission Levies ‘Appropriate’ Fine

The MGC noted in its ruling that the imposed $15,000 fine is an appropriate one based on several factors. The “risk free” comment was made by an on-air ESPN personality and not used on the ESPN BET app; was made live on-air with limited opportunity for others to react in real time; and Penn Sports Interactive self-reported the incident through legal counse.

However, the MGC noted it was dissatisfied with the overall response from Davis and the lack of public response by other other Penn Sports Interactive representative.

“There was no meaningful follow-up beyond internal discussions about the incident and Mr. Davis’ public remarks were made of his own volition, as characterized by (PSI) Attorney
(Chris) Soriano. The Commission is particularly concerned by the lack of a prompt, clear public correction and expects that any future incidents will be met with a definitive public statement affirming that “risk-free” language is prohibited under both regulatory and internal content standards,” the commission wrote in its decision.