Barstool fails the sports betting ‘suitability’ test

It’s hard to see how Barstool Sports founder David Portnoy — who is partnered up with Penn Entertainment, the parent company of Plainridge Park Casino — passes such a test. And Portnoy’s “suitability” problem spills over onto Penn Entertainment, which currently owns a 36 percent share in Barstool Sports and plans to take a 100 percent ownership in 2023 .
Before issuing any sports betting license, state law requires the Massachusetts Gaming Commission to scrutinize each applicant for “suitability.” That’s a test, among other things, of character, integrity, and reputation.
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As the Times also reported, Portnoy filed for bankruptcy due to gambling debt back in 2004 at age 26. Yet he still enjoys goading young people into betting. In fact, earlier this month, the Ohio Casino Control Commission notified Penn Sports — a subsidiary of Penn Entertainment — that Barstool Sports faces a fine of up to $250,000 for allegedly targeting underage bettors at the University of Toledo.
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Asked for comment about the Ohio matter, Eric Schippers, senior vice president at Penn Entertainment, said via email, “We look forward to having the opportunity to address the matter with the Ohio Casino Control Commission through its regulatory process.” Schippers said the company is also looking forward to addressing other Portnoy-related questions at a licensing hearing that’s scheduled for Tuesday before Massachusetts regulators.
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Penn Entertainment deserves a chance to make its case. But it’s a tough sell, since by choice and investment, it is inextricably bound up with the Portnoy brand.
“I personally find it very hard to imagine that Barstool and Portnoy would be “suitable” in Massachusetts, if we keep our standards where they began,” Stephen P. Crosby, the first chairman of the Massachusetts Gaming Commission, told the Globe editorial board via email. And Crosby knows about standards. He resigned his post as commission chair after claims of bias, which he said were false, were made against him.
With the Penn Entertainment/Barstool license application, Crosby said, “At a minimum, there should be a detailed investigation of Portnoy’s financial dealings, professional behavior toward women, and any misogynist or racist language, behavior or intimations. And he should be heard from in person, to account for all that he has said and done.”
There’s precedent for such a deep dive. Following allegations of sexual misconduct against Steve Wynn, the founder of Wynn Resorts, the gaming commission conducted three days of hearings to consider the “suitability” of the company to hold a state license to operate its casino in Everett. The gaming commission’s investigations and enforcement bureau also conducted an investigation and commissioners questioned company executives. Wynn left the company, which was fined $35 million over its handling of the allegations. The Wynn name was also banished from the Everett casino, which is now called Encore Boston Harbor.
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Richard Schuetz, a former casino executive and regulator who now provides consulting services to gaming companies (none in Massachusetts), said that because of how they dealt with the Wynn matter, Massachusetts regulators have a reputation for being the adults in the casino business. He said the Portnoy situation deserves the same approach. “For a viable and sustainable sports betting model to work, it is imperative that all participants operate with a high level of character, honor, and integrity. Moreover, the licensees and their associates are expected to maintain a suitable means of operation. It does seem that from time to time that Mr. Portnoy tests those boundaries,” he said via email.
Sports betting was legalized in Massachusetts last August, and with it comes a special duty to vet, given its seductive appeal to young men. As Crosby also points out, casino gambling opponents in Massachusetts warned from the beginning of “a slippery slope.” The standards would be tough in the beginning, but “once the camel’s nose was under the tent, those standards would start to slip. From what I know, licensing Barstool and Portnoy feels very much like a step in that slippery direction,” said Crosby.
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It’s up to the gaming commission to stop that slide.
Editorials represent the views of the Boston Globe Editorial Board. Follow us on Twitter at @GlobeOpinion.