DraftKings Launches PAC to Shape Betting Laws and Fight Taxes
DraftKings launched its first federal Political Action Committee, aiming to influence betting laws and counter rising taxes and unregulated competition.
A Political Play
DraftKings, a leading sports betting operator, announced the formation of the DraftKings Inc. Political Action Committee (PAC), becoming the first bookmaker to establish a federal PAC.
Led by Lauren Pfingstag Vahey and Griffin Finan, the PAC will fund candidates and causes that align with the company’s interests. “We’re supporting those who care about our business,” a DraftKings spokesperson said, as the firm seeks to shape state and federal policies amid growing regulatory pressures.
The move comes as DraftKings faces headwinds from tax hikes and regulatory scrutiny. In Illinois, taxes on top operators like DraftKings jumped from 15% to 40%, with an added 50-cent-per-bet fee, effectively pushing the rate to 60%. “This drives players to illegal markets,” DraftKings warned, noting unregulated platforms like Kalshi operate without state taxes or oversight.
The PAC aims to back candidates who favor “legal, regulated online betting” and resist policies that hurt operators.
Battling Unfair Competition
DraftKings sees unregulated prediction markets like Kalshi, Robinhood, and Crypto.com as threats, operating freely across all 50 states without state licensing. This gives them a “competitive advantage,” the company argues, as regulated operators face heavy taxes and compliance costs.
The PAC will push for policies leveling the playing field, ensuring consumer protections like those DraftKings offers aren’t undercut by offshore or unlicensed platforms.
With Congress eyeing national sports betting rules, DraftKings’ PAC positions the company to influence potential federal regulations. A December 2024 Senate Judiciary Committee hearing raised concerns about the industry, and two senators called for an antitrust probe into DraftKings and FanDuel’s market dominance.
The PAC could help counter such scrutiny, advocating for policies that protect the company’s 50%+ market share while promoting “customer-centric” betting.
A History of Political Muscle
DraftKings is no stranger to political engagement, spending $400,000 on federal lobbying last year and $5 million in 2021, mainly in New Jersey and Massachusetts, to secure favorable regulations. The company also donated $502,000 in-kind to President Donald Trump’s inauguration committee.
The PAC builds on this, joining others in gaming like MGM Resorts, Caesars Entertainment, PrizePicks, and the American Gaming Association, of which DraftKings is a member.
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