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Following reports that ESPN would scale back on DraftKings sponsorship graphics and language within its programs, DraftKings said it had pulled all of its advertisements from the 24-hour sports network amidst a high profile scandal.
It was revealed to the mainstream media on Monday that an employee of DraftKings with access to insider information won $350,000 in a FanDuel contest. At the time, neither company had a policy regarding its employees playing on competing websites. Once outed, they immediately changed their tune.
"It is absolutely akin to insider trading," said Daniel Wallach, a Fla.-based sports and gambling lawyer, quoted in The New York Times.
ESPN spokesman Paul Melvin said the network’s initial move was being done to avoid the appearance of a conflict of interest.
"It is a standard procedure for us pull these kind of sponsorships and integrations when we are covering breaking news,” Melvin said in a statement issued to USA TODAY Sports. “We look to avoid any suggestion of influence on our coverage."
Melvin also disclosed that the move to pull all advertisements came from DraftKings.
It was not immediately clear whether the action would be long term.
- Aaron Goldstein, Gambling911.com
