Will State Sports Betting Regulations Affect ESPN Programming?

• Regulators in Massachusetts and Ohio extensively discussed Barstool Sports programming and its potential to promote sports betting to underage viewers
• As part of PENN Entertainment being licensed in Massachusetts, Barstool Sports had to bar students under the age of 21 coming to their live college football show
• Will ESPN programming, such as College Gameday, be beholden to the same strict regulations in states where ESPN BET is licensed to operate?

As PENN Entertainment moves forward in its rebranding efforts of the Barstool Sportsbook online sports betting app to ESPN BET, it’s likely that state sports betting regulators will have questions for PENN and ESPN regarding responsible gaming measures and protections for underage citizens where ESPN BET will operate.

Based on past regulatory discussions involving PENN and its partnership with Barstool Sportsbook, it’s not entirely unlikely that regulators will want assurances that ESPN BET will not be promoted at live ESPN events, such as its popular ESPN College Gameday show, where persons under the age of 21 might be in attendance.

It poses an interesting question…will ESPN face the same scrutiny as Barstool Sports for its programming and potential influence on underage viewers?

Live College Football Show Rankled Massachusetts, Ohio Regulators

The Massachusetts Gaming Commission focused extensively on Barstool Sports allegedly promoting sports betting to an underage crowd during its sports betting licensing process with PENN. The MGC pointed to an incident in Ohio where Barstool Sports was fined $250,000 by the Ohio Casino Control Commission for violating a state prohibition on advertising targeting a college campus and/or individuals under the age of 21.

The violation, sent to Penn Sports Interactive as part of its Barstool Sportsbook brand, stemmed from a Nov. 15, 2022, Barstool College Football show which took place “on, or targeting the area of, the University of Toledo’s Campus.” During the show, the violation notice alleges that Barstool advertised the Barstool Sportsbook by promoting pre-registration for the sportsbook, including bonus cash and “mycash” rewards for PENN Entertainment casinos. It also said Barstool targeted individuals under the age of 21 in the same way during the show.

As part of PENN’s sports betting license approval, the MGC ordered PENN and Barstool Sports must take specific measures to ensure that no individual under the age of 21 be permitted to any Barstool Sports College Football shows.

Will PENN’s sports betting rebranding to ESPN BET be subjected to these same state restrictions on similar types of live ESPN programming where individuals under the age of 21 may be in attendance?

ESPN College Game Day Restrictions?

ESPN College Gameday, a popular national college football television show, is a live event that typically broadcasts from a college campus. Students flock to the tapings, many who are under the age of 21. Will ESPN, ESPN BET, and PENN Entertainment be beholden to the same national restrictions moving forward as part of their licensure in Massachusetts? Will Ohio regulators have questions for PENN regarding its plans to restrict advertisement of ESPN BET during live events where underage individuals may be in attendance?

ESPN College Gameday is a massive show, far bigger than the Barstool College Football show that came under question. Will the MGC impose the same national restrictions on ESPN BET if ESPN doesn’t bar students younger than 21 from attending one of the shows?

It is important to note that ESPN BET is beginning with a clean slate in these states. The Barstool College Football show faced these restrictions after its hosts advertised the Barstool Sportsbook and pre-registration for the online app at a live event. It’s likely that regulators will have discussions with PENN and ESPN warning them of such actions, but perhaps will not impose restrictions until a violation occurs?

It also remains to be seen just how extensive the rebranding discussions will be in each state. Discussions will likely take place in both Ohio and Massachusetts leading up to the rebranding, but will not be as intense as the process PENN underwent when seeking a sports betting license.

The MGC has shown a diligence in ensuring limited sports betting exposure to underage state residents, so it will likely have questions for PENN regarding live ESPN programming. An Ohio Casino Control Commission representative told Sports Betting Dime that its compliance team is in regular contact with all Ohio sportsbooks, but does not believe that any regulatory items will be necessary for the rebranding.

ESPN BET Launching in November

PENN Entertainment is currently licensed to operate sports betting in 16 states throughout the country. These are as follows:

• Arizona
• Colorado
• Illinois
• Indiana
• Iowa
• Kansas
• Louisiana
• Maryland
• Massachusetts
• Michigan
• New Jersey
• Ohio
• Pennsylvania
• Tennessee
• Virginia
• West Virginia

PENN Entertainment CEO Jay Snowden revealed that ESPN BET will debut in the middle of the NFL season, “certainly before Thanksgiving,” but a specific date had yet to be determined. The new sportsbook is likely to launch sometime in November, alongside the new user bonus for ESPN Sportsbook.