DraftKings Launches PAC to Boost Influence in Gambling Legislation

DraftKings as an entity has boomed to heights that, if you said they'd be where they're at back in 2011 when the "Milly Maker" NFL contest was all the rage, would be unexpected to say the least.

Now, not only are they a daily fantasy sports provider, but they're arguably the top sports betting platform in the country. During fiscal year 2024, it generated $4.8 billion in revenue, representing a 30% year-over-year increase.

But they're not stopping there.

According to the Federal Election Commission (FEC), the company, on June 9, set up DraftKings Inc. Political Action Committee, and is doing business as DraftKings PAC.

Employees, executives, and stakeholders fund corporate PACs and are legally bound to operate separately from corporate funds. They can only contribute $5,000 per year to a candidate.

According to a DraftKings spokesperson said the PAC “allows for eligible DraftKings employees, board members and other eligible individuals who share our goal of providing the best-possible platform and experience to support state and federal candidates and organizations who have shown an interest in issues affecting our business.”

“As a technology company operating in a dynamic and highly regulated sector, DraftKings is committed to constructive engagement with policymakers at both the state and federal level,” the company added.

Further, the Public Affairs Council says that corporate PACs “represent the most transparent money in the campaign finance system.”

DraftKings and More Have a History of Being Involved in Politics

It's not uncommon for gambling companies to get into the political space. After all, DraftKings and FanDuel both spent millions of dollars in 2022 to help get a ballot measure passed to legalize sports betting in California.

There was also plenty of action pertaining to the Professional and Amateur Sports Protection Act in 2018, which led to states legalizing sports betting.

Additionally, there were attempts in 2021 involving Florida sports betting.

DraftKings and FanDuel aren't allowed, though, as others like MGM Resorts and Caesars have also made contributions.

This Move By DraftKings Comes After Illinois Tax Hike

This may be a coincidence, but this move by DraftKings comes shortly after Illinois passed legislation that would result in a tax on sports betting on a per-wager basis that starts at $0.25 over the first 20 million wagers and increases to $0.50 per wager after that.

The DraftKings spokesperson mentioned Illinois to various outlets, saying:

“DraftKings’ ultimate goal is to build the best, most trusted, and most customer-centric destination for our players. The recent tax increase in Illinois makes it harder to provide the best service to our players while it simultaneously incentivizes more players to wager in the unregulated, illegal market.

“Among other things, we are monitoring a range of regulatory, tax, and licensing policies around the country, including the recent tax increase in Illinois. In addition, DraftKings may prioritize issues that impact business operations, including the expansion of the legal, regulated online betting market.”