The leading US sportsbooks, FanDuel, DraftKings, and Fanatics, have increased their political spending, funneling $42 million into PACs in the last quarter.
All the sportsbooks contributed substantial sums to the Win for America Super PAC this quarter.
DraftKings had previously contributed $2 million to the PAC, but this quarter eclipsed that with $17.5 million in donations, according to FEC filings. FanDuel exceeded that with $19.5 million, while FBG Enterprises, the parent company of Fanatics Sportsbook, added another $4 million, bringing the total to $42 million.
Both FanDuel and DraftKings now have their own PACs, launched last year. DraftKings formed its PAC, American Future, last year, which has largely focused on funding politicians who support reducing Illinois gambling taxes.
Folllow the Money
Of the $42 million donated to Win for America, $7.3 million was funneled to American Future. The majority of the funds ($26.1 million) went through the American Conservative Fund, as charted by Gaming America.
The American Conservative Fund primarily supports Republican politicians. Of the $26.1 million, the largest amount, $6.4 million, went to the American Conservative Fund Georgia.
Georgia has strict gambling laws, but with a population of over 11 million, it represents a large untapped market. A Senate committee recommended that the state legalize sports betting at the end of last year. Getting lawmakers onside is a key component of the PAC spending.
Texas Targeted for Gambling Expansion
Texas is another state that gambling companies are eager to see expand its legal options, second only to California as the most populous state in the country.
Las Vegas Sands has spent huge amounts lobbying politicians for a Texas casino, while sportsbooks would love to see the state launch regulated online betting.
The Texas Sands PAC also donated to James Talarico’s previous campaigns, and he has expressed support for bringing a legal casino to the state. However, he has turned against corporate PACs and billionaire donors. He won the Democratic primary on a campaign vowing to limit donations.
Of the Win for America funds,$3.5 million was given to the Texas Conservative Fund, which aims to promote legal gambling in the state.
Another $3 million went to Win for Pennsylvania, which aims to preserve the market from further regulations and taxes. The state currently taxes companies at a rate of 36%, more than most in the country.
The money partly goes towards backing the campaigns of politicians who may vote for favorable market conditions, while other spending goes on media communications and strategy groups.
Will the Gamble Pay Off?
The spending is a gamble, with no guarantee that the donations will lead to increased profits for the companies.
DraftKings and FanDuel were the main contributors to a $170 million campaign supporting Proposition 27 in California, which would have legalized sports betting. But voters rejected the proposal, and the state is no closer to opening up its gambling market.
Having launched prediction market platforms, the companies may also be targeting politicians who support allowing them to offer sports markets in states such as California, Texas, and Georgia.
Prediction market platforms such as Kalshi and Polymarket are also increasing lobbying spending, while tribal groups and casinos are investing more, too.
With high marketing and lobbying costs to cover, betting companies then need to maximize profits, which come from players losing money.
This leads to accusations that gambling companies are intentionally encouraging problem gambling. DraftKings and FanDuel are facing a string of lawsuits alleging that the operators use manipulative techniques to maximize player losses.
As political spending increases, it is unlikely that the companies will change their marketing strategies anytime soon.
