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On Wednesday, the Massachusetts Gaming Commission (MGC) held a hearing to look into alleged noncompliance by a subsidiary of PENN Entertainment Inc., the owner of Barstool Sportsbook. The investigation centered on a promotional effort known as “Big Cat’s Can’t Lose Parlay” (CLP), which was investigated for possibly breaking the state’s marketing standards. While the MGC considers the consequences, let us look at the specifics of the hearing and its significance for Barstool Sportsbook.
1. Is it a risk-free proposition?
Because of its link with wagering as a risk-free offer, the CLP campaign, named after Barstool star Dan Katz, better known as “Big Cat,” sparked concerns. The Massachusetts sports betting regulations expressly ban advertising that implies or encourages risk-free gaming. Barstool founder Dave Portnoy tweeted about his large wager on a four-leg college basketball parlay in March, generating attention and sparking controversy about the campaign’s compliance with state regulations.
2. PENN’s Argument and Defense
PENN Entertainment claims that the promotion did not breach any rules and requests that the MGC rule accordingly. Representatives for the corporation say that no “reasonable person” would regard a four-leg parlay as risk-free. The lawyer for PENN, Jonathan Albano, emphasized the satirical nature of the CLP and its association with Dan Katz’s image as a failed bettor. PENN believes that the promotion was meant to be amusing rather than an encouragement of risk-free gaming.
1. Promotion Suspension and Compliance Review
In response to the regulatory examination, PENN voluntarily suspended CLP promotion in Massachusetts while the MGC deliberated. While the campaign was cancelled, the promotion’s broad impact became clear. By March 20, the CLP had 122,428 unique participants, with 55% of them being repeat gamblers. Notably, 90% of the initial bets lost, demonstrating that the bulk of bettors did not regard the promotion as a sure thing.
2. Portnoy’s Wager and the Power of Social Media
Dave Portnoy’s social media presence and references to his “substantial wealth” most certainly notified his followers that his wager was out of reach. Promotions involving big bets, such as those made by notable personalities like “Mattress Mack,” are frequent in the sportsbook sector, according to PENN’s legal representative. The lawyer contended that the context and understanding of such promotions should be considered.
The Massachusetts Gaming Commission chose to deliberate privately rather than take quick action at the hearing. Since the industry’s inception in Massachusetts earlier this year, the commission’s thoroughness in addressing legal sports betting issues has been clear. The MGC’s comments and questions throughout the hearing show that they are taking the problem seriously and will thoroughly investigate the CLP promotion. Following their discussions, a formal decision and potential fines for PENN will be issued.
1. Previous Complaint and Resolution
In 2021, the National Council on Problem Gambling expressed concerns to the American Gaming Association, which has a responsible marketing code for sportsbook operators, over the CLP promotion. PENN answered that the promotion followed the code but did not ensure financial success. The complaint process was completed in March 2021, and no further action was taken.
2. Ongoing Scrutiny and Compliance
Barstool Sportsbook, like other Massachusetts mobile providers, has been subjected to the MGC’s meticulousness throughout the regulatory procedure. The commission has spent many hours in public analyzing applications and proposed legislation, emphasizing its commitment to safe and lawful sports betting practices.