Shams, The NBA Draft, And The Problem With Sportsbooks Providing Content
The NBA draft took place last week, and for the second straight year, there was some intrigue around the top of the board and betting odds.
This year, the drama surrounded “FanDuel partner” Shams Charania. Story here, and the short version is this tweet moved betting markets:
Bets started flooding in on Henderston to go No. 2 as a result, moving him from an underdog to be selected there to a very large favorite. Miller went second, and ESPN reported that this was really never in doubt.
In the wake of it, Charania and FanDuel came under fire, getting scrutiny from the gambling media and also national outlets like The Washington Post and The Wall Street Journal.
More on Shams and NBA draft betting
Here are things that didn’t happen, I can say with about 100% certainty:
Charania gave this information to FanDuel before he released it publicly so FanDuel could adjust
FanDuel told Charania to report something so it could make more money on draft betting.
That I even have to type that out is crazy, but they are both things that floating around on the internet/social media.
But that is also kind of the point. Optics are often more important than reality, and the optics of a reporter who is also a “FanDuel partner” are pretty poor whether you believe any of the above nonsense.
In an episode like this, you’re asking for it. Charania was reporting what he was hearing, and that information also dovetailed with actionable betting intel on the draft. It’s pretty hard to separate those two things and expect your average bettor or sports fan to draw that imaginary line between them. If you’re a reporter with a direct connection to FanDuel, it comes with the territory whether you like it or not.
It’s also messy because Charania works for The New York Times-owned The Athletic, which also works with sportsbooks; as The Washington Post eloquently pointed out:
Thursday’s episode underscored the ever-blurring line between the industries of sports media and gambling, and both the ethical and conflict of interest questions they raise.
Content and sportsbooks
The optics problem for sportsbooks and content doesn’t really stop with the NBA Draft; this has just been the most visible and obvious example.
Several sportsbooks have created operations that give bettors picks via their own content sites, social media, or video/TV platforms. There hasn’t really been a reckoning regarding their content empires, but in the current period of re-regulation of US sports betting, it wouldn’t shock me to see pushback.
Are sportsbooks doing this because they are purposely trying to give people picks they think will lose? Almost certainly not.
But intent doesn’t really matter, does it? The optics of sportsbooks giving out their own picks feels weird, even though they are just trying to generate audiences and engagement.
For instance, here’s Dave Portnoy of Barstool telling everyone with a wink and a nod that they should bet this Major League Baseball total from Monday night and he thinks it will win; Portnoy’s bet lost. (Also, miss me with the contrived idea that Barstool is just the marketing arm of Barstool Sportsbook and there’s a meaningful separation here.)
I often pick on Portnoy, but he is just the most visible content producer for a sportsbook creating content and picks; the genre is hardly unique to him and other Barstool personalities.
We also have moved into an era where sportsbooks are putting content right next to bets. Here’s DraftKings today:
The implication is the content next to the bet makes it a good bet, or at the very least is actionable betting intel. (I’ll go on the record saying a sample size of three to five at bats is not terribly meaningful.)
I don’t have a problem with providing the pre-built single-game parlays, because people like them. I do have a problem with content meant to make those bets look more likely to hit.
When I first saw the biggest US sportsbooks get into the business of producing their own content five years ago, I wondered when it would bite them in the ass. The Charania episode is the first example, but probably not the last.