Topline
ESPN’s blockbuster $1.5 billion deal to partner with PENN Entertainment and use the company to launch an ESPN-branded sportsbook has garnered backlash from those who believe the world’s largest sports news and information company getting into gambling presents a conflict of interest.
Key Facts
ESPN’s deal will take PENN Entertainment’s Barstool Sportsbook and rebrand it as ESPN Bet, marking the company’s first foray into the burgeoning industry of legal sports gambling.
In an opinion piece published by the Poynter Institute for Media Studies, Tom Jones, a former journalist with the Tampa Tribune and the Minneapolis Star-Tribune and a current media columnist, wrote that the deal presents concerns over ESPN “maintaining journalistic integrity when covering gambling” and “being ethical and responsible in dealing with those in the audience who might have gambling problems.”
Social media users were quick to express their doubts, including Eric Meckl who commented on Facebook, “Not sure I like a sportsbook being run by an organization with tremendous ability to influence opinions on sports and how they will bet,” or one user on X (formerly known as Twitter) who wrote, “I cannot wait for this to backfire when Woj or Schefter (two ESPN reporters) give a report on a player that turns out to be inaccurate that adjusts ESPN’s betting lines accordingly.”
CBS Sports college football writer Shehan Jeyarajah also commented on the matter, writing on X, “Remember the concerns about Shams Charania working for a sports book and potentially moving lines with his reporting? Well, the World Wide Leader just made those concerns look like peanuts,” he said, using a nickname for ESPN.
Forbes has reached out to ESPN for comment.
Tangent
Jeyarajah and many other critics pointed to a recent incident involving FanDuel and Charania, a sports journalist famous for breaking exclusive news, as the kind of conflict of interest they’re concerned about. Charania works for both FanDuel and The Athletic. The day of the NBA Draft, in his capacity as a basketball writer for The Athletic, Charania posted on X that prospect Scoot Henderson “is gaining serious momentum” to be selected second in the draft by the Charlotte Hornets, bucking weeks of reporting that the Hornets were interested in Brandon Miller. Charania’s prediction didn’t pan out, as the Hornets selected Miller instead, but many fans were quick to point out that Charania’s other employer, FanDuel, possibly benefited financially from people making bets based on Charania’s report, which seemingly affected the odds. FanDuel denied the accusations saying the company “is not privy to any news that Shams breaks on his platforms.” Charania hasn’t commented publicly on the matter.
Key Background
ESPN has long been a financial boon for its owner Disney, but as people cut cable and move to streaming or the internet, ESPN is no longer seeing the growth it once did. In July, the company announced layoffs of some of its most notable figures including Max Kellerman, Jeff Van Gundy and Ashley Brewer. Disney CEO Bob Iger has even publicly floated selling the sports media property. The deal with PENN Entertainment provides ESPN with the opportunity for a new revenue stream.
Further Reading
ESPN’s Surprisingly Big Bet With Penn Entertainment (Forbes)
Disney Stock Surges Amid Reports ESPN Plans To Launch Streaming Service (Forbes)
CORRECTION (8/9): This story has been updated to note ESPN and PENN have entered a $1.5 billion partnership for the sportsbook app and to remove a reference that PENN was being purchased.