Barstool Sports and Penn Entertainment Blur Lines in Responsible Gambling Messages

Despite this, Penn benefits from reduced marketing costs due to Barstool’s established and extensive following, including well-known names such as Dan “Big Cat” Katz and Dave Portnoy, who each have 4.4 million Twitter followers.

However, Penn often has to manage controversy when Barstool makes controversial posts. While controversy can be expected, compromising responsible gambling practices can harm Penn’s credibility.

Penn is not Ecstatic about Barstool Sportsbook Promoting Violence on Social Media

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While some had successful bets, others experienced unfortunate losses. Unfortunately, Dan Katz of Barstool Sportsbook suffered a “bad beat,” which led to a controversial tweet from the company’s Twitter account featuring Katz violently smashing and flipping over a table with a baseball bat.

While some viewers found it entertaining, others criticized the post for promoting irresponsible behavior and included the National Council on Problem Gambling (NCPG) phone number for those who feel they may have a gambling addiction.

The concern with this type of content is that it may normalize aggressive behavior as an acceptable response to losing a bet. Keith Whyte, the Executive Director of NCPG, warned in December that such violent content can be hazardous for minors as it may encourage them to engage in such behavior. He stated that promoting or normalizing extreme anger after losing a bet is irresponsible. Whyte thinks it is essential to showcase a more realistic image of wins and losses for people to realize there are highs and lows. However, he feels showing violence is not a normal reaction and can be harmful.

Barstool Sportsbook posted the video on March 16. The tweet is still available and has generated 311,500 views.

Does It Make Barstool Sportsbook RG Messages Useless?

Roughly one month after Penn’s acquisition of Barstool, it was announced that the Barstool Sportsbook and Casino had obtained accreditation for responsible gaming under the Responsible Gambling Council’s RG Check Program.

Penn claimed to be the first operator in the US to undergo this voluntary accreditation process, which is one of the most extensive responsible gambling accreditations worldwide.

Chris Soriano, VC and CCO for PENN Entertainment, accentuated that the company is committed to responsible gambling and creating the safest environment for players.

However, Barstool’s tweet is in direct opposition to Soriano’s statement. Penn features a responsible gambling section on its website, which includes a specific segment on “responsible marketing and advertising.” In this section, Penn emphasizes the importance of promoting gaming responsibly and avoiding misleading claims about the odds of winning. In addition, the company states that they include messaging that supports responsible gaming.

However, there have been instances where Barstool Sports, which Penn owns, has shared gambling-related content that contradicts Penn’s stance on responsible gambling.

Responsible Gambling Has no Place for Sarcasm

Using sarcasm in promotional material regarding responsible gambling is tricky, as it can be challenging to execute responsibly.

The Massachusetts Gaming Commission has initiated an adjudicatory hearing related to Dan Katz’s “Can’t Lose Parlay,” which Barstool Sportsbook frequently promotes. Currently, Barstool has ceased using the phrase on all platforms.

Jay Snowden, PENN CEO, defended the sarcastic phrase saying it was supposed to be funny and not saying “can’t lose.”

Whyte also mentioned that the video featuring Katz smashing a table could have been intended as sarcasm. However, given the presence of the Barstool backdrop, the well-timed filming, and Katz wearing goggles, it is possible that the act was not spontaneous.

The use of sarcasm in marketing raises more questions than it answers.

Keith Whyte explained that Barstool Sports has defended their “can’t lose/can’t miss” parlay tweets by claiming they are being sarcastic. However, the concern is that someone unfamiliar with Barstool Sports may come across the video of Katz smashing a table and not realize that it is intended as sarcasm.

According to Whyte, using humor in general marketing is challenging, as not everyone will understand the joke. This leaves even less room for error when using sarcasm, particularly in the context of responsible gambling. In his experience, striking the right tone with a sarcastic reliable gambling message is almost impossible. Such messages can come across as trivializing and dismissive, leading to confusion about whether or not the message is meant to be taken seriously.

What Should Regulators Do About PA Sportsbook Accountability?

Ohio and Massachusetts have taken strict actions against operators violating advertising regulations. Penn and DraftKings Sportsbook were collectively fined $700,000 by Ohio, where Penn was charged with advertising the Barstool Sportsbook app to underage students at the University of Toledo, and DraftKings allegedly mailed ads to underage individuals.

Massachusetts has some of the strictest advertising regulations in any state. For example, it has considered banning advertising in stadiums, where not everyone is of age to gamble, and it prohibits ads or promotions of specific wagers.

Pennsylvania has recently followed the footsteps of Ohio and Massachusetts, as the Pennsylvania Gaming Control Board (PGCB) banned operators from using the term “free bet” in their marketing material.

Although the PGCB has been lenient with operators, having issued only four online gambling fines since 2019, Ohio has already fined four operators since its launch in January. The three states’ consistent message and a low tolerance for advertising mistakes indicate a good start.

However, regulators may need to start addressing social media content, which falls under the promotion category. In addition, they may have to start punishing destructive behavior to avoid further damage.