WEEKLY FEATURE: Massachusetts Gaming Commission Begins Applicant Hearings

The Massachusetts Gaming Commission began its hearings into applicants seeking a license to operate a sportsbook in the state. Beginning with Plainridge Park Casino, owned by Penn Entertainment, they proved not to be a rubber stamp body for its Barstool sports book brand, where controversial president Dave Portnoy (l.) is a principal.

WEEKLY FEATURE: Massachusetts Gaming Commission Begins Applicant Hearings

The Massachusetts Gaming Commission set aside three hours December 5 to hear from the public regarding the 15 applicants for a sports betting license.

Jeff Johnson of Plainville showed up—and that was it. No more speakers attended to voice opinions for or against any applications, according to the Boston Herald.

Johnson, vice chair of the Select Board, attended to cheer for Plainridge Park Casino.

“We look forward to this process bearing fruit early in the new year. In particular, here in Plainville. I will be grateful to know that the cars we see exiting the Commonwealth, carrying our money to sports wagering and table games just across the border from us, will have options to eat and spend and enjoy our money in our state,” he told the commission.

That the one speaker called for Plainridge Park Casino to be approved turned out ironic, given the discourse of the commissioners the following day over Barstool, the sports betting arm of Penn Entertainment, the parent of Plainridge Park.

The initial round of hearings was set aside for retail sports betting licenses for Category 1 casinos which would go live in late January or at least by Super Bowl time. These cover the three licensed casinos: MGM Springfield, Encore Boston Harbor and Plainridge.

Of the three it was Plainville which raised a red flag about Penn Entertainment’s ties to Barstool Sports. Penn, which acquired a stake of Barstool in 2020, has taken steps to buy the entire company for $387 million, according to GBH News.

As a result, Barstool has gotten its own sports betting app and branding inside Penn casinos. What has surfaced is a recent profile of Barstool, its founder, David Portnoy, and Penn Entertainment in the New York Times.

Titled. “Desperate for Growth, Aging Casino Company Embraced ‘Degenerate Gambler’”, the piece examined the Penn Entertainment-Barstool partnership and what could be termed a blasé approach to responsible gambling. It also detailed Portnoy’s link to problem gambling, recurring personal tax liens, and sexual assault allegations, according to SBCAmericas.

“You’re gonna have a Barstool’s-branded sports bar on the premises, according to the proposition that you guys are putting forward,” Commissioner Eileen O’Brien said. “And I’m concerned about some of the historical marketing associated with Barstool.”

Commission Chair Cathy Judd-Stein said the timing of the article and its promotion of gambling behavior could be deemed irresponsible.

“So now we have an obligation to reconcile what is very available publicly as to Barstool and really the significant personality attached to Barstool and what we’re gonna do about it as we think about this application,” Judd-Stein said. On the other hand, she also cited the responsible gaming presentation as excellent, except maybe for some of the Barstool information.

“I have seen that it cuts through, I believe, a lot of the clutter, I would say, in terms of these advertising opportunities as well,” Erin Chamberlin, the senior vice president of regional operations for Penn Entertainment, said. “It’s a very innovative approach to responsible gaming. It speaks to younger people in a different type of voice that I think resonates with them and really makes it stand out a little bit differently.”

O’Brien questioned Penn Entertainment representatives about a specific incident in the article when Portnoy and other Barstool personalities hosted a tailgate event—and all that tailgate events entail—near the University of Tennessee campus during a college football game. Despite efforts by Penn to explain that it was not on campus and geared more for alumni than students, O’Brien found the event troubling.

“I’m disturbed by that and then I’d love to have a conversation about how the company is addressing those types of things,” O’Brien said.

Penn Entertainment also tried to clarify the difference between Barstool Media and Barstool Sportsbook.

“I think one of the important things to keep in mind was this was the Barstool College Football Show which was broadcast from there,” Penn Entertainment Chief Compliance Officer Chris Soriano argued. “There was no sportsbook advertising. This was Barstool Media. This was not the gaming operation.”

How to handle betting and college sports is an industry-wide problem. Chamberlin also pointed out this is a problem that is not specific to Barstool, but something the entire industry is grappling with.

“But what we are not doing is specifically sponsoring any colleges or universities from marketing perspective with any sports betting agreement,” she said. “You have not seen Penn Entertainment enter into any of those types of agreements, very purposely.”

Barstool has a heavy presence in the media with 11 channels of distribution and 90 personalities, Soriano said. “We regularly train, we regularly coordinate with Barstool,” he told the commission.

Chamberlin said Barstool has taken an “innovative approach to responsible gambling” and suggested the irreverent tone speaks more effectively to younger bettors.

Judd-Stein didn’t necessarily buy it all.

“Are we being genuine here? Because I came across the article because you brought it to the attention of the MGC Investigation and Enforcement Bureau,” she said. Judd-Stein went on to ask if Barstool considers itself a responsible gaming advocate. If so, maybe the IEB should not have been given a copy.

“So now we have an obligation to reconcile what is very available publicly as to Barstool and, really, the significant personality attached to Barstool, and what we are going to do about it as we think about this application,” Judd-Stein said.

The commission postponed a vote on the Plainridge Park application..

But the process moves forward, despite concerns in some quarters about launching in-person sports betting in late January, but mobile wagers in early March.

“The legal department, as you have seen, has continued to crank out the regulations required for sports wagering, those are currently on schedule,” said Karen Wells, executive director of the commission.

The commission will hold meetings to review applications for mobile licenses tied to retail casinos in mid-December. Meetings regarding six companies seeking to host online wagering untethered to brick-and-mortar casinos should begin in January.

The casino applications reveal something as it pertains to the physical layout of sportsbooks at each property, according to Masslive.com

In the MGM Springfield application, property officials said they would rely on BetMGM as both the retail and mobile sportsbook. The company is a subsidiary of MGM Resorts International and British firm, Entain.

“BetMGM is one of the leading entertainment companies in North America, pioneering the expansion of online sports betting and gaming,” the application said.

The casino built a sportsbook with stadium seating, a 45-foot viewing wall, an enclosed wagering counter, with room for kiosks.

Encore Boston Harbor will allow patrons access to a handful of locales within the property, including the WynnBET Sportsbook, with ten betting windows and 29 betting kiosks.

“We anticipate that this venue will be one of the most popular destinations in New England for those who want a place to watch the game after placing their bet,” the casino said.

Kiosks will be available 24/7 with live betting windows offered 9 a.m. to midnight.

Plainridge Park officials will rely on kiosks and live teller windows. In addition to more traditional competitions, the casino will offer eSports betting like Counter-Strike:Global Offensive and League of Legends.

“Odds sheets will be available, and team members will be prepared to answer questions that guests may have regarding how to place a wager,” officials wrote.

Wells said applicant reviews are on time to issue licenses at the correct time frame to meet commission expectations for launch dates.

“The other piece that’s coming down the road is going to be the internal control submissions and review, along with review of the house rules,” she said.