Critics have long known that the incestuous relationship between sports leagues, sports networks, and sports betting companies is a problem.
Craig Carton thinks ESPN would be wise to put some separation between itself and its gambling partner before it spells major disaster.
Carton would know all too well about the perils of gambling. The former WFAN and FS1 host was sentenced to three and a half years in prison following his arrest for securities and wire fraud related to his gambling issues. While he’s continued dishing out hot takes since his return to the media world, he’s also discussed the perils of gambling addiction and advocated for people to get help.
There have been numerous betting and gambling scandals involving major sports leagues in recent years. However, this past week’s FBI arrests of NBA coach Chauncey Billups and player Terry Rozier have sent shockwaves through the industry. ESPN’s coverage of the news got awkward when banners for ESPN Bet disappeared during a segment. The situation highlighted the precarious nature of these partnerships, especially when the media company profits from the gambling operation.
Carton was crystal clear about what he thought ESPN needed to do to avoid a potential catastrophe down the road.
@craigcartonshow ESPN HAS A GAMBLING PROBLEM… “The NFL owns 10% of ESPN… if the NFL benefits from you losing your wager, then they’re incentivized to control the outcome of games.. they have a financially vested interest in you losing…” – Craig Carton #ESPN #SportsBetting #Gambling #NFL #fyp ♬ original sound – The Craig Carton Show
“ESPN needs to divest immediately from ESPN Bet, and here’s why,” said Carton on Friday’s episode of The Craig Carton Show. “The NFL owns a piece of ESPN, meaning by default, they own a piece of the sportsbook. Well, you can’t have it both ways, because if the NFL benefits from you losing your wager, then they’re incentivized to control the outcome of games because it means more money in their pockets.
“Meaning they have a financially vested interest now in you losing whatever wager you make on NFL games. Meaning it’s more likely for someone to say, ‘Hey, if there’s a gazillion dollars on Team X to cover, it’s in our best interest that they don’t cover. Make sure the referees call a game a certain way.’ Now, I’m taking liberties there, of course, but that’s the problem. When you want people to never question your integrity, you can’t own a piece of a sportsbook, and they do.
“Number two, if you’re an on-air personality at ESPN, you should not be allowed to market picks or suggest people follow your picks because as an employee of now the NFL, you have access to inside information. Your employer does better when they make more money, giving you a chance to make more money. So you’re now vested in people following your pics and losing.”
A few points of clarification. First, Carton is referring to the NFL’s 10% ownership stake in ESPN, which is still pending regulatory approval. Second, ESPN brands ESPN Bet, but it’s owned by Penn Entertainment, so technically speaking, neither the NFL nor ESPN owns the sportsbook, as Carton said.
Still, his point stands that the NFL and ESPN both have a vested interest in ESPN Bet succeeding. That, on paper, is a bad thing when it comes to defending oneself against any accusations against their integrity and intentions when the eventual next gambling scandal happens.