Online Sports Betting Companies Increase Election Spending

DraftKings, FanDuel, and other online sports betting firms are significantly increasing their election spending for the U.S. midterms. Campaign election data indicates they have spent at least $72 million. This comes as prediction markets like Kalshi and Polymarket gain attention, posing new challenges and competition to online betting.

The U.S. online sports gambling market is lucrative but faces competition from prediction markets. Some see these markets, embraced by the Trump administration, as a direct threat. Currently, the industry is the third-largest corporate donor for the U.S. midterms, trailing only crypto and technology sectors. Corporate watchdog Public Citizen notes this industry is keen on electing candidates who align with their interests.

DraftKings, FanDuel, Fanatics, and UK-based bet365 are funding ‘Win for America’, a super political action committee (PAC). This PAC drives resources into two affiliate PACs aimed at Democratic and Republican state races: American Future and the American Conservative Fund.

Super PACs in the U.S. can accept endless donations from corporations and individuals. They can spend vast sums supporting candidates but are barred from directly coordinating or donating to campaigns.

According to Public Citizen, ‘Win for America’ launched recently, marking an unprecedented spending level for the sector. Rick Claypool, a research director at the nonprofit, considers ‘Win for America’ a major force comparable to AI and crypto, each spending over $100 million in the midterms.

‘Win for America’ and FanDuel declined to comment. DraftKings, Fanatics, and bet365 did not respond. Supporting candidates does not ensure they will support favorable legislation, but corporations hope their donations will eventually yield returns. The impact of this spending is evident in some state races.

In Georgia, ‘Win for America’ invested more than $12 million through PACs targeting Republican and Democratic candidates. This occurred as the legislature considered bills to legalize gambling. The Atlanta Journal-Constitution reported that nearly all industry-backed candidates won their races.

The PAC is also focusing on Pennsylvania races amid efforts to increase taxes on online sports betting to fund public transportation. Records reveal the industry initially contributed $43 million to ‘Win for America’, with another $29 million added later. Not all donations are captured in federal records, as some spending is allocated to nonprofits that do not disclose their donors.

DraftKings, FanDuel, Fanatics, and BetMGM formed the Sports Betting Alliance in 2021 to lobby at federal and state levels for online gaming legality. BetMGM has not contributed to the super PAC.

DraftKings contributed at least $34 million to ‘Win for America’, with FanDuel giving $27 million, and bet365 and Fanatics donating $5.5 million each this cycle. Bet365 donates via its U.S. arm, Hillside (Shared Services US) LLC. DraftKings and FanDuel also donated to other committees.

A 2018 Supreme Court ruling overturned a federal ban on state sports betting legalization. Since then, 39 states and Washington, D.C., have legalized sports betting in some manner, including 33 states allowing online betting. This change has driven the industry to ramp up its lobbying efforts, as seen in increased spending reported by the campaign finance watchdog OpenSecrets. FanDuel spent $1.1 million on federal lobbying, a significant rise from previous years. DraftKings more than doubled its lobbying to roughly $900,000.