Why are Adam Schefter and Adrian Wojnarowski prohibited from betting on ESPN’s app?

ESPN has banned Adam Schefter and Adrian Wojnarowski from engaging in sports betting. of any kind.

Why are Adam Schefter and Adrian Wojnarowski prohibited from betting on ESPN’s app?

Adrian Wojnarowski and Adam Schefter cannot place bets on sports. (via ESPN/SI)

ESPN has just come out with a brand new betting application as part of its attempt to diversify and venture into the sports gambling space. While the app named ESPN Bet will accept users from all spheres and give them an opportunity to bet on their favorite sports, there are two special individuals who are prohibited from placing any bets. They are ESPN’s own Adam Schefter and Adrian Wojnarowski.

The two are prominent insiders of ESPN and Schefter is prompt at covering all trade information for the NFL and the NBA while Wojnarowski deals with inside information relevant to the NBA. The sports media conglomerate issued a specific set of guidelines to the duo which lays down guidelines and refrains them from making any bets on ESPN Bet and any other applications as per Front Office Sports.

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You might be wondering, why? Is it not weird that of ESPN’s 5,000+ employees, only these two have been prohibited from placing bets relating to sports even though others within the organization could have access to detailed sports information and statistics?

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Adam Schefter and Adrian Wojnarowski can have an unfair advantage owing to their access to confidential information

The reason that Woj and Schefter have been put under a microscope is that they have access to confidential information that their peers do not have. These are the individuals who break the news of the biggest trades, extensions, suspensions, and so on. ESPN did not want to have a situation wherein the insiders could be held liable for using this confidential information to gain a financial advantage through bettors.

Adam Schefter and Adrian Wojnarowski
Adrian Wojnarowski and Adam Schefter (via ESPN/ SI)

While Wojnarowski and Schefter are required to follow this, the new policy will also cover Ian Rapoport and other insiders who are part of direct deals with major sporting leagues such as the NFL and the NBA. Production personnel and off-site journalists cannot bet on games that they are covering but they are not completely prohibited from placing bets.

In light of ESPN’s new guidelines, Adam Schefter has been put in a rough spot as he is an investor in Boom Entertainment, a company that owns and operates casino gambling apps including NBC’s Sports Predictor. Robert Kraft is another notable investor in the same company. This should not be a problem as ESPN has prohibited him from making bets but not investing in companies that engage in the practice, however, it does appear questionable.

ESPN and Penn Entertainment entered into a massive deal worth $1.5 billion for ESPN Bet

The upcoming launch of ESPN Bet is a result of a $1.5 billion deal signed between the two in August, as per the agreement, Penn has the rights to operate the app while the sports network will handle the promotion via its vast range of online and broadcast platforms. Penn will handle the app under the ESPN brand name for 10 years and has the option to extend the operation for another 10-years.

The new betting platform is basically a rebranded version of the Barstool Sportsbook, Penn sold Barstool Sports to Dave Portnoy for a dollar back in August. The new deal will help ESPN venture into the sports betting space which is one of the hottest growing avenues right now.

It gives the Walt Disney-owned corporation a lower risk option of venturing into the gambling world without any experience or know how. So far, ESPN has stuck to running betting-focused shows such as Daily Wager. Through their agreement with Penn, the network will not have to apply for its own licenses to run online sportsbook and can make use of the existing licenses owned by their partner in 16 states.

The American Gaming Association had estimated the value of bets placed via sportsbooks in 2022 at $93.2 billion, which is a 63% rise in comparison to 2021. The revenue generated from legal sportsbooks alone stood at $7.5 billion. ESPN had been on the lookout to partner with an existing sportsbook rather than create one of its own from scratch and with this deal, they will be able to do exactly that. The exact time of release of ESPN Bet has not yet been made public but it is expected to be available post 12 PM on the 14th of November.

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