ESPN's recent $1.5 billion deal to acquire PENN Entertainment and launch an ESPN-branded sportsbook has sparked criticism from those who see a conflict of interest in the world's largest sports news and information company entering the gambling industry.
The deal involves rebranding PENN Entertainment's Barstool Sportsbook as ESPN Bet, marking ESPN's first venture into the legal sports gambling market. Critics, including former journalist Tom Jones, expressed concerns about ESPN's ability to maintain journalistic integrity and act responsibly when covering gambling.
Social media users also voiced doubts about the deal, with some questioning the influence ESPN could have on sports opinions and betting. Others raised concerns about potential inaccuracies in reporting impacting ESPN's betting lines.
CBS Sports college football writer Shehan Jeyarajah compared ESPN's move to a previous incident involving sports journalist Shams Charania, who works for both FanDuel and The Athletic. Charania's report on a player's draft prospects allegedly influenced betting odds, leading to accusations of a conflict of interest. However, FanDuel denied any knowledge of Charania's reports.
ESPN has not yet commented on the backlash.
The deal comes as ESPN faces financial challenges due to the decline in cable subscriptions. The company recently announced layoffs, and Disney CEO Bob Iger has suggested the possibility of selling ESPN. The partnership with PENN Entertainment offers ESPN a new revenue stream.
In conclusion, ESPN's acquisition of PENN Entertainment and entry into the gambling industry has generated concerns about journalistic integrity and conflicts of interest. Critics argue that the company must navigate these challenges while pursuing new revenue opportunities. ESPN has not provided a comment on the matter.