Barstool Sports Halts ‘Can’t Lose Parlay’ Amid Regulatory Scrutiny in Massachusetts
In a move that has sent ripples through the sports betting community, Barstool Sports has decided to pause its promotion of the “Can’t Lose Parlay” in Massachusetts. This decision comes as the Massachusetts Gaming Commission (MGC) turns its regulatory gaze towards potential violations of state gambling regulations by the popular sports betting entity.
The Penn Entertainment mobile app, under which Barstool operates, announced the suspension of the promotion “for the time being.” This preemptive action is in anticipation of a hearing by the MGC, slated to discuss the implications of the marketing strategy used by Barstool Sports and whether it infringes upon state gambling laws. Loretta Lillios, the MGC Investigative Bureau Director, highlighted during a recent meeting that the commission is preparing to explore penalties that could arise from the use of such marketing tools.
The Massachusetts Gaming Commission issued a $25,000 fine to Penn Sports Interactive (Barstool Sportsbook’s operator) on June 7, 2023, for violating state sports wagering laws with the ‘Can’t Lose Parlay’ promotion, following a self-reported noncompliance incident.
Understanding the ‘Can’t Lose Parlay’
The “Can’t Lose Parlay” has been a recurring feature on the Pardon My Take podcast, hosted by Dan Katz, also known as Big Cat. While the allure of a bet that can’t lose is strong, the reality, as always, is that no bet comes without risk. This notion directly contradicts Massachusetts’ sports betting regulations, which strictly prohibit marketing that could mislead or confuse patrons into placing bets under the guise of them being risk-free.
Lillios pointed out that the marketing of the “Can’t Lose Parlay” by Barstool Sports caught the MGC’s attention after the brand promoted a wager on four NCAA men’s basketball games, now completed. The specific games involved were not disclosed, but the incident has underscored the regulatory watchdog’s vigilance against misleading promotions in the sports betting arena.
Massachusetts’ Stance on Sports Betting Violations
The news of the upcoming hearing with Barstool Sports arrives amid broader scrutiny over sports betting practices in Massachusetts. Just a day prior to the announcement regarding Barstool, the MGC conducted a hearing with operators from Encore Boston Harbor and Plainridge Park Casino regarding self-reported violations related to bets placed on in-state college teams outside of tournament play.
These violations, including bets on games involving Boston College, Merrimack College, Long Island University, Harvard, and Yale, underline the strict regulations Massachusetts has in place concerning sports betting, particularly around in-state collegiate events outside of major tournaments like March Madness.
While the MGC did not immediately vote on these violations, a report outlining potential penalties and actions against the casinos involved is expected. Additionally, further hearings concerning other possible violations, including a second case involving Encore and a self-reported issue at MGM Springfield casino, are on the horizon.
The Regulatory Landscape of Sports Betting in Massachusetts
The evolving situation in Massachusetts mirrors a broader national conversation about the regulation and marketing of sports betting. As states navigate the complex interplay between promoting burgeoning sports betting markets and safeguarding consumers against misleading promotions, the actions taken by Massachusetts’ regulators could serve as a template for others.
The “Can’t Lose Parlay” controversy highlights the need for clear, unambiguous marketing practices in the sports betting industry. As regulators and operators alike tread this fine line, the ultimate goal remains to ensure a fair, transparent, and responsible gaming environment for all participants.
As the landscape of sports betting continues to evolve, both in Massachusetts and nationwide, the industry’s stakeholders will be watching closely. The outcomes of these regulatory hearings and the actions taken in their wake could significantly influence the future of sports betting marketing strategies, emphasizing the importance of compliance and consumer protection in this rapidly growing market.